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Need some advice, don't know where else to stick some dosh for medium to long term savings/investments (£6-7k now with an additional monthly £750 deposit).
We have already maxed out premium bonds (2 accounts), we don't have to worry about our mortgage (offset savings currently matches mortgage balance) and i've just started a Vanguard LifeStrategy ISA S&S fund (60% bonds /40% shares) with an intial deposit and then an additional monthly sum moving forward so what else would people suggest to help diversify our portfolio (low risk). We would like access to the money but it doesn't have to be immediate access?
I was thinking of another Vanguard LifeStrategy fund, maybe the 80/20 but wondering whether it would be better to go with another ISA S&S company but they don't seem as straightforward/as simple to use and they seem to be much more expensive than vangaurd. Other than that, I see that WestBrom BS offer 3.1% for a 5 year fixed savings bond but I think id rather go for something more long term but with some access to money if needed.
Any suggestions in terms of what other people do?
I think because of the uncertainties around how high interest rates are going to go at the moment to combat inflation, maybe its prudent to not go long term and stick it in a fixed 1 year Cash ISA, something like the the Shawbrook Bank one at 2.8% and then re-evaluate next year?
I think after some research I'm going to go with zopa for now.
It sounds like you've got this in hand!
I could only recommend Martin Lewis' latest MSE newsletter, but I guess you already subscribe to that.
For a decade or more, to get the best interest rates you've needed to pay monthly (wages) into the account and pay at least one bill out from it. I guess this is to reduce the account-hoppers, that jump every couple of years to chase the higher interest rates and opening cashback offers.
5 banks now pay big to win you over, eg: £160 + cashback on bills ... It's quick too, taking just seven working days to complete a switch ... Play the game correctly to make £100s from bank switching... without having to say goodbye to your main account.
Just look at how much MoneySaver Jason has made:
"I started my first switch in March 2019 and have since switched six more times, netting over £820 in cash and £180 worth of wine."
Cheers driver8, its getting harder to find good decent trustworthy impartial advice, Martin Lewis is a rare breed still and I do look at his site hence why I'm seriously looking at Zopa as another savings route at the moment.
Has anyone opened a savings account with NS&I ?
A few days ago, I noticed the savings rates were pretty good at 3.4% (instant access / 'Direct Saver') and 5.0% (1 year fixed). So as a test, I tried to setup a new instant access account and it was very easy indeed - all I needed to do was pay into it from a debit card, and the new 'pot' appeared in my dashboard straight away (with an email confirmation 2 days later).
Suprisingly easy, and no jumping through hoops. From my experience, setting up a new account with an existing bank pretty much like starting from scratch with them all over again.
NS&I accept both mobile and landline numbers for 2FA - no card readers to mess with. Although personally I would prefer confirmation via their app, or via an Authenticator app. Their online GUI is very intuitive (unlike many) but I was disappointed to read that they apparently outsourced IT ops some time back. Pretty poor for a govt company, imo.
Operations:NS&I's head office is now within the Department of Education Building, (2023) in Westminster, London; with operational sites in Blackpool, Glasgow, Birkenhead and Durham.
However, its entire back office operation is contracted out to a French company, Atos, who use a site in Chennai, India.
Unfortunately the civil service pay scales don't really allow for technical staff to be paid the market rate. To earn a decent salary you have to have staff, thus a lot of IT is outsourced. It also makes the wage bill artificially lower, but the real staffing costs much much higher. The most you can theoretically earn before needing to manage people is £35k. Contract staff are being charged out at 5 -6 times that amount. But hey, gotta show how effective that austerity plan is.
Has anyone opened a savings account with NS&I ?
Wow! They are serious about this !
UK savings rates: NS&I launches one-year deal offering record 6.2%
https://www.theguardian.com/money/2023/aug/30/uk-savings-rates-nsi-deal-bank-growth-bonds
