Best place to put your savings

[Him Her]

Put a deposit on a house, buy to let mortgage and rent it out, gives you much more return than any bank or investment

Hmm, steady M8, true ROI is around 6%, higher than average risk

 

[danforth]

The only problem you have is you were in danger of trusting a bank for investment advice

Absolutely right. More to the point, it's something I've never even thought about !

Why do I still have an ingrained trust for retail banks with names I recognize. It no longer makes sense! I always shop around when the "offer" expires, but among these same banks, wary of anything else.

The annual switch is a bit of a pita as well. I think it's because I've never been interested in squeezing out the last drop, and even now it's more a matter of principle.
I don't trust IFAs, so why banks? Convenience and apathy really. Lucky enough to have had a steady income, with a decent pension.

I'm not rolling in money, but I'm not scratching along either. I suppose either end would generate more enthusiasm. I just want somewhere as safe as possible for my cash pot, tbh the best interest
rate is secondary, if push comes to shove. Probably a bankers dream customer. I don't know where else to go for comfort. I've got ISAs and NSI bonds maxed out to avoid tax already.
I'm slowly going to lose, but barring a total collapse, it's not going to cause concern within my/our foreseeable life span. Kids are reasonably secure already, and there's always the house.

I've dabbled in shares, made a bit of profit, nothing spectacular, and the swapping and changing got to be a grind. A couple of windfalls with lucky timing in the property market, and that's it.
Not good management, I'm hopelessly idle with that, just dumb luck! Your comment is a revelation, and very true, but I don't have a bloody clue what to do about it, or even if I want to.:Biggrin2:

 

[Him Her]

To shock you further...

...ever wondered why you can only get financial advice from someone who is 'authorised'?

Now, to pinch a phrase from another thread, there's jobs for the boys if ever I saw it!

 

[Mick]

Last one on this lol from me, as I am at the age where saving is very important lol!!

So an ISA is tax free

Savings accounts are taxed on the interest.

If I have an ISA that I have to lock into for 2 years and a AER of 2% (capped to the 5K whatever limit).

VS

If I have a santander savings account that is 3% but that is taxed with a 20K limit.

Do they already tax the 3% on the savings account, or will that happen.

I am just trying to figure out the point of a CASH ISA tax free when it would seem (and I am not sure here) that you would be much better off with a santander savings account at 3%

Anyone...

Mick

 

[Redgun71]

Joined Halifax 2 years ago, every so often they offer £100 to switch your bank account to them and pay you £5 every month as along as you paid in £1000.
No interest but £160 in the 1st year and £60 after that if you follow their terms/rules.

Halifax UK | Bank Accounts, Savings, Loans & Mortgages

 

[Redgun71]

Shares pay dividends - usually bi-annually. I buy FTSE100 shares that pay dividends in the 3-6% area. Global companies like Vodafone, Astra Zeneca etc. I spread over various sectors including mainstream technologies (mobile networks), insurance, mining, petro-chemicals etc. The sort of stuff that gets hit less in recession.

Pretty solid but ALL investments are risks. I avoid banks, hi-tech and IPOs (like Facebook going public for the first time). I check back over the last decade that dividends have been growing year on year.

Boring but simple

Shares that pay dividends are certificated shares only right?
Not online share trading where your shares are held electronically? Lost out on a lot of dividends over the last 10 years :arrrr:.

I used Barclays and they charge a minimum fee of £25 plus stamp duty :slaps:.
Who do you use and and how much do they charge?

I have previously bought some shares that either paid a dividend or a perk or both.
1) Barclays shares (just by 5 days) before they become ex-dividend.
2) British Airways now IAG, I get 10% off flights/holidays not including the taxes, fees and carrier charges.
3) Marks & Spencers 6 monthly discount vouchers.

I would be interested to know how many to buy/how you divi up the shares for the Dogs of FTSE.

 

[Him Her]

Not sure what you mean by 'certificated' shares? If you buy shares online and hold them electronically you don't normally get a certificate but they work the same as if you buy them through a broker and get the paper certificate.

Those trading fees are high - don't go through a bank. I use Hargreaves Lansdown but that's not an endorsement, there's plenty more doing good trading deals.

The 'Dogs' system is fairly simply, take whatever you have to invest, divide it by ten and buy the top ten FTSE100 'Dogs' (high dividend, out of favour, check they haven't announced a dividend cut etc.). Hold for a year and roll-over to the next 'Dogs' or sell and take the gain.

 

[Redgun71]

Sorry for the previous bad choice of words.

In my experience, shares that I bought in which paper certificates were supplied, I received dividends from that company.
Shares that I bought online which are held electronically/CREST by the broker (Barclays), I have never received any dividends.
I don't know if it is because that company didn't make a profit or already ex dividend or the broker kept it for themselves as online trading is much cheaper than getting the paper certificate.

 

[Him Her]

Okay. You need to check the Terms & Conditions then. Is there a management fee being charged and the dividends are the payment? I get the dividends on all shares and trade through three companies - Hargreaves Lansdown (SIPP), Computashare and Equiniti.

You might have also (unknowingly) elected to have the dividends rolled-up into more shares - in which case the number of shares you hold should be going up. Some shares (like Rolls-Royce) pay dividends in 'C' shares which are then rolled-up or sold for cash.

Most online-trading sites will show you if the share is ex-dividend, what percentage they pay and when payment is made.

Also check you have copies of the tax vouchers, dividends are taxed at source so for basic rate taxpayers there's nothing else to do although HMRC want to know even if there's no tax due.

 

[edogg]

Last one on this lol from me, as I am at the age where saving is very important lol!!

So an ISA is tax free

Savings accounts are taxed on the interest.

If I have an ISA that I have to lock into for 2 years and a AER of 2% (capped to the 5K whatever limit).

VS

If I have a santander savings account that is 3% but that is taxed with a 20K limit.

Do they already tax the 3% on the savings account, or will that happen.

I am just trying to figure out the point of a CASH ISA tax free when it would seem (and I am not sure here) that you would be much better off with a santander savings account at 3%

Anyone...

Mick

If you are a non taxpayer because your income is too low then you can apply for tax exemption on your interest

 

[Redgun71]

Okay. You need to check the Terms & Conditions then. Is there a management fee being charged and the dividends are the payment? I get the dividends on all shares and trade through three companies - Hargreaves Lansdown (SIPP), Computashare and Equiniti.

You might have also (unknowingly) elected to have the dividends rolled-up into more shares - in which case the number of shares you hold should be going up. Some shares (like Rolls-Royce) pay dividends in 'C' shares which are then rolled-up or sold for cash.

Most online-trading sites will show you if the share is ex-dividend, what percentage they pay and when payment is made.

Also check you have copies of the tax vouchers, dividends are taxed at source so for basic rate taxpayers there's nothing else to do although HMRC want to know even if there's no tax due.

Going to look at the small print!!!