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calling all finance/banking experts...

Discussion in 'General Chat' started by superkarl, Sep 3, 2012.

  1. superkarl
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    superkarl MAN OF STEEL

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    [Sep 3, 2012]
    so im after some advise and need some teaching on the following subject.

    I have a bit of money that im unsure what to do with, its not a MASSIVE amount, but certainly decent enough to have sat there building interest and incase of an emergency. What i need to know is what are my options in terms of accounts, saving, interest rates, returns, lengths of investment etc etc.

    the shear amount that comes up when searching 'savings account' and 'investments' is staggering, and full of banks bull**** advertising their own services. I need some good, unbiased opinions based on experience really, and some small lessons on how these things work etc. I did do financial studies at college many moons ago, but only very lightly covered things like ISA's and accounts and interest rates due to the vast amount of sub-topics within finance, so i've lost touch of whats what really, i need refreshing.

    i dont particularly need the money right now and for it to be accessible, but, with what life can throw at you i suppose its good to have it ready incase of emergency, so im undecided on an account where i cannot touch it for 3 years or so. on the other hand, i dont want to be tempted by this money sat there, i need to be sensible, thats the foremost approach i need to take!

    please, any experienced people enlighten me.

    regards
    Karl
    #1
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  3. CHEZ
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    CHEZ moderately amusing

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    [Sep 3, 2012]
    i will look after it mate!
    i am a right banker, so our lass tells me! :icon_thumright:


    oh! wait a minute.....................................
    with a W apparently! :undwech:
    #2
  4. murran
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    murran Active Member

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    [Sep 3, 2012]
    in this day and age its safer to keep it under your matress tbh!
    id just put it in a isa if i were you, but then its along time since my finances allowed me/or gave me the scope to save anything.

    that reminds me i need to punch our child minder in the jaw.
    #3
  5. sportstractor
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    sportstractor Chugger

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    [Sep 3, 2012]
    Whack some solar PV panels on your roof, best safe thing you can do with your money at the moment I reckon. It's an easy way to get a decent return on only 7k... You get about £800 back per year if investing in a bigdog 4kw system

    Although you can't sell them on if you need the cash lol.
    #4
  6. StateOfPlay
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    StateOfPlay Well-Known Member

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    [Sep 3, 2012]
    First thing you need to do is use your Tax Free allowance. You have maximum limits each tax year. The most popular type is a Cash ISA because it is held in a savings account rather than invested in shares. This gives you security, with tax free interest. You can put £5640 into a cash ISA each tax year, starting on the 6 April. If you want instant access, you can get 3%,( check out Manchester B/Society) if you can lock it away for 2 years you can get 3.55%.( check out Mansfield B/Soc). All are covered by the FSCS in case you are worried you have never heard of them!

    An investment ISA would not suit, as you need to leave it for 5 years to have a good chance of getting back more than you put in, but that isn't guaranteed anyway. So avoid this unless you have a portion of money you definitely don't want to touch.

    Outside of ISA's, you can get fixed rate savings, again these are not at all risky. Tesco do a 3.6% fixed rate for 2 years, or Halifax do a 3 year for 3.85%. These are gross interest rates, so if you are a taxpayer you will lose 20% in tax, or 40% if you are a higher rate taxpayer.

    All in all, it does depend on how much a "not a massive amount" is.
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  7. sportstractor
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    sportstractor Chugger

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    [Sep 3, 2012]
    Oh wait... I see your in the northwest. Scrap that, you don't get sun there :p
    #6
  8. Ghost
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    Ghost Boo!

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    [Sep 3, 2012]
    Sounds like you know as much or more than me tbh mate, id say ISA's sound as good as any, but you still need to keep moving money around for best rate, year to year.

    You may want to look at peer to peer lending, but i have never used it or read into it, and don't know how to get into it.
    this is only a quick one i found
    http://banking.about.com/od/peertopeerlending/a/peertopeerlend.htm
    #7
  9. adamss24
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    adamss24 Well-Known Member

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    [Sep 3, 2012]
    Buy gold mate, it will never depreciate in case of deeper recession. I would buy a ****ty property as well and get it refurbished if you have enough to put down for the deposit then rent it ! Forget about banks, their policy is to use your money without giving nowt in exchange...that's why they grown so big !
    #8
  10. superkarl
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    superkarl MAN OF STEEL

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    [Sep 3, 2012]
    I have 5k to put somewhere.

    Having had an investment ISA I don't think I'll opt for this, didn't get a great return, can't remember figures, in the gym so can't check. I had the max amount in that, 5640, and some in another fixed rate, but return wasn't amazing, prob due to taxes.

    Cash ISA seems to fit the bill, a year with 3 percent, 2 year 3.55 seems **** to me, based on the examples above.

    I don't want and expect miracles, esp on 5k. But if its secure, from me aswell, and sees a bit of growth, then great.
    I was basically asking if there was anything really brilliant out there, I imagine not.
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  11. CHEZ
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    CHEZ moderately amusing

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    [Sep 3, 2012]
    buy drugs? be a pimp? or buy art! the world is your oyster my friend!
    or pi55 it up the wall and have an almighty bender! :salute:


    or propose......................:arco:
    #10
  12. brasiliangringo
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    brasiliangringo Member

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    [Sep 3, 2012]
    There is nothing out there which you will get a good return on tbh. Interest rates are flat. Lock it up in a 5 year bond with a blue chip - rates are pretty good..

    Compare the best 4 & 5 year fixed rate bonds - moneyfacts.co.uk
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  13. jojo
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    jojo S3 Drift King! Staff Member Moderator

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    [Sep 3, 2012]
    I was going to suggest property, but you would need £15k+
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  14. superkarl
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    superkarl MAN OF STEEL

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    [Sep 3, 2012]
    Where on earth would I be without you chezabel! Ever so helpful!
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  15. superkarl
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    superkarl MAN OF STEEL

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    [Sep 3, 2012]
    Bond with a blue chip???
    Can you elaborate?
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  16. CHEZ
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    CHEZ moderately amusing

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    [Sep 3, 2012]
    #15
  17. StateOfPlay
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    StateOfPlay Well-Known Member

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    [Sep 3, 2012]
    Oh, you want something amazing with £5k?

    Buy shares. Just do your research. Banks are cheap at the moment, but you might want to wait until the LIBOR scandal is over. Set yourself up with an online share dealing account, to keep the costs down, and then buy a mix of shares with SOME of the £5k and have some fun at the same time.

    I make a few quid each year by doing this. I am not a great risk taker, so I will never be a millionaire, but I do get a good return and have lots of fun doing it.
    #16
  18. superkarl
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    superkarl MAN OF STEEL

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    [Sep 3, 2012]
    ive thougt about this, but I've always thought its very risky, like true gambling, I'll do some homework
    #17
  19. Reesy
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    Reesy Well-Known Member VCDS Map User

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    [Sep 3, 2012]
    Take £500 out of it and get a clutch and a remap sorted. (it's an emergency)

    Put the rest in an isa. Unless you know what you are doing shares are risky and any that aren't don't really make you any money..
    #18
  20. murran
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    murran Active Member

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    [Sep 3, 2012]
    5k is not a lot of money anymore. it wouldnt even pay off half of my debts im juggling and struggling with!

    stick it in a cash isa and try to forget its there is my advice.

    do you have any children? put it in one of those childrens saving accounts they can only access when their 18/21? they had good rates back in the day.
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  21. Brodster
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    Brodster Shark Performance In Scotland Regional Rep Site Sponsor VCDS Map User

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    [Sep 3, 2012]
    Gold and diamonds are always a winner but make sure you know what your dealing with. I buy diamonds and keep them. And you can pick up an uncut 1ct diamond grade D and Internally Flawless for about 2k. That when cut and graded is worth more than 8k. All my missus's diamonds are done this way.
    #20
  22. superkarl
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    superkarl MAN OF STEEL

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    [Sep 3, 2012]
    well apologies, but 5k to me is alot of money, which is why its always been taken care of by me and not spent, always put aside.

    now this is good interesting info!
    #21
  23. jdp1962
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    jdp1962 Grumpy Old Moderator Staff Member Moderator

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    [Sep 4, 2012]
    And that's why you have £5,000 to save, instead of £10,000 you can't pay back.
    #22
  24. murran
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    murran Active Member

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    [Sep 4, 2012]
    im not saying 5k isnt alot of money to me, quite the opposite..... £50 is alot of money to me atm.
    im saying that when you can easily spend £150 on a weekly shop and put £100 worth of fuel in your car...... in todays world 5k is not alot of money.
    #23
  25. s3dave
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    s3dave TFSI Hybrid

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    [Sep 4, 2012]
    I would not trust any financial organisation at the moment, anything can happen and has...
    Its ok banks saying your money is safe but the reality is nobodys is...The euro disaster has not happened yet.....

    Investment organisations are full of lying thieving scum so keep away from them too....

    I think precious minerals are far to expensive now...you may have missed the band wagon there....

    I know you are at uni, so what about setting yourself up in business part time, buying and selling...or invest in a local business for an agreed return?
    #24
  26. StateOfPlay
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    StateOfPlay Well-Known Member

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    [Sep 4, 2012]
    Ah well, all the advice hasn't been good enough, last try, how about using all the money to buy premium bonds?

    No risk other than if you have bad luck and don't win anything at all! But you could win a fortune!
    #25
  27. murran
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    murran Active Member

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    [Sep 4, 2012]
    good call, my grandad has knocking on 30K in premium bonds. it does well by all accounts, whatever he wins he buys more premium bonds with it.
    #26
  28. superkarl
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    superkarl MAN OF STEEL

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    [Sep 4, 2012]
    i understand. and quite right in that perspective. i know that the 5k would be very easy to spend on my car thats for sure.

    not true at all.
    i've taken on board all the replies, and certainly value what you have contributed. thankyou.

    i've got a couple of weeks to sort this out, no rush, and nothing will happen to it just sitting there.
    i've briefly read up on diamonds. but need to do more enquiries as to estimate what is what. still i bit of a gamble tho.
    perhaps a cash ISA is most suitable for me.
    #27
  29. superkarl
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    superkarl MAN OF STEEL

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    [Sep 6, 2012]
    money is in an instant access cash ISA at 3%. Win
    #28
  30. crazy88
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    crazy88 Loving the anonymity

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    [Sep 6, 2012]
    I am purely replying to this thread to congratulate chez on his replies. They were exceptional.

    Glad you've decided to do something with it Karl. I pump any extra money I have into my house at the moment. I'm hoping house prices don't tumble and crash, but I think they should be fine.
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  31. jojo
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    jojo S3 Drift King! Staff Member Moderator

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    [Sep 6, 2012]
    Which Bank? If you don't mind me asking.
    #30
  32. superkarl
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    superkarl MAN OF STEEL

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    [Sep 6, 2012]
    santander.
    the money has been with them for 5 years previously in an investment ISA.
    #31
  33. crazy88
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    crazy88 Loving the anonymity

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    [Sep 7, 2012]
    And don't suppose we can have your address, mothers maiden name and bank account number too can we? ;)
    #32
  34. Ste_Nova
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    Ste_Nova Active Member

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    [Sep 7, 2012]
    my isa is full, so i used what i had spare to do loan sharking
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