3-4 years best return savings plan?

lovestrat74

So this Trading 212 account is not an ISA right? So will I be taxed on interest over 1K? Is it protected up to 85K(?) like a normal savings account? Is the rate of 5,2% a variable or fixed rate?

ThePrettyDamned

Barclays have a 5 percent account, it's blue rewards. I think I pay £4 per month, and in return I get £8 (I have contents insurance and mortgage with them) into a separate blue rewards account and access to a blue rewards saver, which gives 5 percent interest on savings up to 5k,and then a tiny 1.something on everything over. Not bad, for an instant access cash account, but no good if you want to drop much more than 5 grand in, and it sounds like better is available elsewhere. 

A lot of hoops to get that rate with Barclays for sure. 

CavemanGrogg

ThePrettyDamned said:

Barclays have a 5 percent account, it's blue rewards. I think I pay £4 per month, and in return I get £8 (I have contents insurance and mortgage with them) into a separate blue rewards account and access to a blue rewards saver, which gives 5 percent interest on savings up to 5k,and then a tiny 1.something on everything over. Not bad, for an instant access cash account, but no good if you want to drop much more than 5 grand in, and it sounds like better is available elsewhere. 

A lot of hoops to get that rate with Barclays for sure. 

It's rarely if ever worth keeping more than £5k in a single account, yet alone with a single bank, the are some obvious exceptions to this, but the rule is generally you get a decent interest rate for the first £5k, sometimes but very rarely £10k, and basically nothing for everything over those amounts.

paulcaye

lovestrat74 said:

So this Trading 212 account is not an ISA right? So will I be taxed on interest over 1K? Is it protected up to 85K(?) like a normal savings account? Is the rate of 5,2% a variable or fixed rate?

It is an ISA - well that what is says in the APP etc. The APR is variable, in the time I have had one it has only gone up.  From 5 to 5.2 but I have only had it a few months. 

CavemanGrogg

paulcaye said:

lovestrat74 said:

So this Trading 212 account is not an ISA right? So will I be taxed on interest over 1K? Is it protected up to 85K(?) like a normal savings account? Is the rate of 5,2% a variable or fixed rate?

It is an ISA - well that what is says in the APP etc. The APR is variable, in the time I have had one it has only gone up.  From 5 to 5.2 but I have only had it a few months. 

I've been using Trading 212 since it was launched, and since they started paying interest on any non invested cash held in your account, it has only ever risen, it can go down, but to date, since it was introduced, it has only ever risen.

Barnezy

ISA’s are great but remember the money you put in them has already had Tax paid on it, in some peoples cases up to 45%. 

The best and most tax efficient way to save long term is your pension.

I’m currently maxing out my pension contributions to lower my tax bill. When I retire, I can take 25% out tax free and pay off my mortgage, effectively having the taxman contribute 45% towards that payment.  

lovestrat74

Barnezy said:

ISA’s are great but remember the money you put in them has already had Tax paid on it, in some peoples cases up to 45%. 

The best and most tax efficient way to save long term is your pension.

I’m currently maxing out my pension contributions to lower my tax bill. When I retire, I can take 25% out tax free and pay off my mortgage, effectively having the taxman contribute 45% towards that payment.  

This is what the saving is all about. Get enough in my pot to pay off my mortgage at the end of the current term. My current term (10 year fixed) ends in 2028 and ideally I'd like to be mortgage free as opposed to having to sign up to another (small) mortgage.  

equalsql

If you've got more than 5k then checkout Investec.
https://savings.investec.com/notice-saver

Rob1742

I am happy to have my stocks and shares ISA in Fundsmith through Hargreaves Lansdown.

I’ve just checked and my growth has been 56% over 5 years, which included one year with a 3% loss and another with a 22% gain.

I personally would just start a stocks and shares ISA but choose Fundsmith or maybe Rathbone global as my funds of choice.

I tend not to use IFA’s as I believe I can do a much better job myself, and when I spoke to a wealth manager about what I am doing he said he actually personally uses Fundsmith himself and he suggested I carry on doing what I’m doing. 

CavemanGrogg

Trading 212 launched their cash ISA today, it's 5.2%.

Something else that they have done, is made their ISAs, at least their Stocks And Shares ISA is now ''flexi'.  What this means is that you can now basically treat you ISA as if it was a regular bank account, you still have you limit, which is currently £20K, however you can now say deposit £2000 into your ISA, leaving you with £18k left that you can add to your ISA, and then decide that you want to take out £1000, instead of still having £18k that you can deposit still for this tax year, you have £19k that you can deposit, so if you have a no notice needed to withdraw ISA, for all intensive purposes, you can the ISA instead of a traditional bank account.

Heartfeltdawn

lovestrat74 said:

I am a bit bamboozled with all the options out there... What would you recommend to achieve the highest return in that relatively short space of time?

Never had one before and do not know much about them but would you recommend a Stocks and Shares ISA or something else? 

First, what have you got to invest? Cash? Switching Stocks and shares ISAs into cash ISAs or vice versa? 

Options: go to Raisin. 

https://www.raisin.co.uk/

Top fixed-rate bond for 1 year is 5.20% right now with Al Rayan Bank. Very simple process, they held £10k for me for a year at a higher rate. 

Right now Raisin have a 'refer a friend offer' going. Basically I give you a link that tracks back to my account. You register with Raisin using that link, fund a savings account with a minimum of £5k for six months or more, the pair of us get £50 each. Add that onto the interest you get (obviously the £50 is tax free). 

eg: £5k invested at 5.20% = £260 interest + £50 bonus = £310 (which would be equivalent to 6.2%). 

Anyone interested, drop me a PM

Other stuff I dabble with: Tandem as my easy access savings account (4.9% with the bump up), Natwest DRS (6% - £150 max per month), investment account with QC, hopefully will be starting up my brokerage account with Charles Schwab in the summer.

ANd kudos to Mr G for the heads up on Trading 212. 

RaymondLin

I currently have Chase boosted at 5.1% until November and Nationwide 8% with only £200 deposit per month.  Just pulled money out of Santander’s 5.2% and put it into Chase as it’s dropped to 4.2%.

Heartfeltdawn

RaymondLin said:

I currently have Chase boosted at 5.1% until November and Nationwide 8% with only £200 deposit per month.  Just pulled money out of Santander’s 5.2% and put it into Chase as it’s dropped to 4.2%.

Nice. 

DiscoStu

RaymondLin said:

I currently have Chase boosted at 5.1% until November and Nationwide 8% with only £200 deposit per month.  Just pulled money out of Santander’s 5.2% and put it into Chase as it’s dropped to 4.2%.

This is also my setup

Grampa

If you fancy a bit of a gamble and very dependent on luck, my Premium Bonds have averaged over 8% PA for the past few years, currently just under 6% return in 2024 with 7 draws still to go.

Phil_C

Grampa said:

If you fancy a bit of a gamble and very dependent on luck, my Premium Bonds have averaged over 8% PA for the past few years, currently just under 6% return in 2024 with 7 draws still to go.

What type? I have an instant cash isa which I have savings in, which earns me £100+ a month, but I'm relatively new!

Funkfingers

lovestrat74 said:

What would you recommend to achieve the highest return in that relatively short space of time?

Sell guns, drugs or tickets for travel in unseaworthy little boats.

No. That is in poor taste and I take it back.

•

Use a computer 'bot to buy up concert tickets at face price then, resell them at extortionate prices. 

Now that Boris Johnson has left Politics, there is nothing to be gained by either having his baby or fellating him.

viz

Grampa said:

If you fancy a bit of a gamble and very dependent on luck, my Premium Bonds have averaged over 8% PA for the past few years, currently just under 6% return in 2024 with 7 draws still to go.

So YOU’RE the reason mine is averaging at 1%!

pt22

No mention of Monzo here. You can get 4.6% instant access up to £100k and no deposit requirements. I’m much happier with that than I am 5% across a bunch of smaller accounts or moving my direct deposits.