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Savings and Investments thread

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  • Rob7Lee
    Rob7Lee Posts: 9,595
    edited June 2023
    shine166 said:
    Our son has been left a few £ in my mums will. Any suggestions of the best place for it to sit for 15 years ?.  I'm thinking PBs, If my stepdad gets his way itl sit in a bank account and do nothing, any info is very much appreciated 🙌 
    Age of child? PB's won't be best, how much approximately?
  • Chaz Hill
    Chaz Hill Posts: 5,217
    £150 for me, £50 for Mrs Chaz and zilch for Junior this month on PBs.
  • Fanny Fanackapan
    Fanny Fanackapan Posts: 18,738
    £25 for each of us this time. 
  • RaplhMilne
    RaplhMilne Posts: 4,601
    Showmetheway2gohome said:
    My lad works for NHS and they have a salary sacrifice car leasing scheme. Not sure how this works or affects his pension long term 
    does anybody use this scheme or know how it works. Maybe our pension expert golfie 

    He gets a new Tesla for 3 years with everything covered except paying for electric. So it’s insured any thing breaks or needs new tyres it’s covered for 3 years 
    he is going to pay £330 a month but has a reduction of 
    £70 in nic
    £103 in Tax 
    £72 in pension
    so his worried about money coming out his pension so his thinking can he top his  NHS pension up or invest in a private pension to make up what his losing. 
    Not sure how this works really has anyone else used this scheme or knows how it works. 
    Never heard of “Salary Sacrifice” as a tool to purchase a car. I used this to pay into my pension. This meant in theory the reduction in my salary of £1000 per month.  This was money I was paying 40% tax on, so went into my pension, Tax Free and  I also paid no NI which was about 2%. On top of that because my employer (Lloyds paid no NI on the £1000) that saved them 13% , so they gave me a 5% top up on my pension contribution. 

    So instead of taking home £580 each month, My pension contribution was £1070. 

    Obviously NHS pay a percentage of salary as pension. As salary sacrifice lowers your salary, then the % contribution is reduced in line. 

  • golfaddick
    golfaddick Posts: 33,628
    £100 for me this month.

    Not bad but will have to pull it all out in a few months time when I move. Just hope in the next 3 months I can get a 4 figure win. 
  • shine166
    shine166 Posts: 13,918
    Rob7Lee said:
    shine166 said:
    Our son has been left a few £ in my mums will. Any suggestions of the best place for it to sit for 15 years ?.  I'm thinking PBs, If my stepdad gets his way itl sit in a bank account and do nothing, any info is very much appreciated 🙌 
    Age of child? PB's won't be best, how much approximately?
    He's 4 and it's 5k
  • golfaddick
    golfaddick Posts: 33,628
    shine166 said:
    Rob7Lee said:
    shine166 said:
    Our son has been left a few £ in my mums will. Any suggestions of the best place for it to sit for 15 years ?.  I'm thinking PBs, If my stepdad gets his way itl sit in a bank account and do nothing, any info is very much appreciated 🙌 
    Age of child? PB's won't be best, how much approximately?
    He's 4 and it's 5k
    Junior ISA. Stocks & shares one. Not cash for 15 years fgs.
  • valleynick66
    valleynick66 Posts: 4,890
    Showmetheway2gohome said:
    My lad works for NHS and they have a salary sacrifice car leasing scheme. Not sure how this works or affects his pension long term 
    does anybody use this scheme or know how it works. Maybe our pension expert golfie 

    He gets a new Tesla for 3 years with everything covered except paying for electric. So it’s insured any thing breaks or needs new tyres it’s covered for 3 years 
    he is going to pay £330 a month but has a reduction of 
    £70 in nic
    £103 in Tax 
    £72 in pension
    so his worried about money coming out his pension so his thinking can he top his  NHS pension up or invest in a private pension to make up what his losing. 
    Not sure how this works really has anyone else used this scheme or knows how it works. 
    Not sure on scheme but i think the £330 per month for a Tesla seems excellent value.
  • TelMc32
    TelMc32 Posts: 9,054
    Just the £50 this month on the PBs (2 x £25). 
  • golfaddick
    golfaddick Posts: 33,628
    edited June 2023
    Showmetheway2gohome said:
    My lad works for NHS and they have a salary sacrifice car leasing scheme. Not sure how this works or affects his pension long term 
    does anybody use this scheme or know how it works. Maybe our pension expert golfie 

    He gets a new Tesla for 3 years with everything covered except paying for electric. So it’s insured any thing breaks or needs new tyres it’s covered for 3 years 
    he is going to pay £330 a month but has a reduction of 
    £70 in nic
    £103 in Tax 
    £72 in pension
    so his worried about money coming out his pension so his thinking can he top his  NHS pension up or invest in a private pension to make up what his losing. 
    Not sure how this works really has anyone else used this scheme or knows how it works. 
    Assuming he is in the 2015 scheme then it's a "Career Average" scheme based on 1/54th of annual salary. % of contributions based on salary so I'm also assuming the £72 less in pension is what he is "gaining" by doing Salary Sacrifice. Long term he wont be that worse off I wouldn't suggest him paying extra in to make up this shortfall. 
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  • shine166
    shine166 Posts: 13,918
    golfaddick said:
    shine166 said:
    Rob7Lee said:
    shine166 said:
    Our son has been left a few £ in my mums will. Any suggestions of the best place for it to sit for 15 years ?.  I'm thinking PBs, If my stepdad gets his way itl sit in a bank account and do nothing, any info is very much appreciated 🙌 
    Age of child? PB's won't be best, how much approximately?
    He's 4 and it's 5k
    Junior ISA. Stocks & shares one. Not cash for 15 years fgs.
    Yeah 100% agree on not cash. Cheers for the suggestions, will pass them on and hope they look into it. 
  • Rob7Lee
    Rob7Lee Posts: 9,595
    shine166 said:
    Rob7Lee said:
    shine166 said:
    Our son has been left a few £ in my mums will. Any suggestions of the best place for it to sit for 15 years ?.  I'm thinking PBs, If my stepdad gets his way itl sit in a bank account and do nothing, any info is very much appreciated 🙌 
    Age of child? PB's won't be best, how much approximately?
    He's 4 and it's 5k
    premium bonds no good, the win rate on £5k is vanishingly small, as Golfie has said, Junior ISA is the way to go (Stocks and shares) open one up and put £1k a month in for 5 months just to spread the risk a little, but over 15 years probably doesn't make a lot of odds. 

    If you're feeling generous you can add a bit each month to it, maximum from memory is £9k per annum.

    Don't hold it in cash, it'll just go backwards in 15 years.
  • PragueAddick
    PragueAddick Posts: 22,145
    Friends, I hope you've all noticed that the news earlier this week on UK inflation has sparked a big upward twist in savings rate offers.

    On a one year fix you can now get 5.1% with Secure Trust, and 5.05% with Charter savings bank. The latter will give you 4.98% if you'd like to at least get the  interest monthly. 

    On instant access HSBC went up a full half% point to 4% (albeit it's capped at £10k and you have to have a current account.)

    Secure Trust offer 3.8%. Others are bound to react. 

    If you want to stay on top of all this you deffo want to stop by the MoneySavingExpert forum that has nicked the title of this thread :)

    And this now should give the older/more cautious investor pause for thought. If you stay in equity markets, rathter than take up one of those fixed rate deals, it means that you are confident that this time next year the FTSE250 will be above 20,100. A fair bit above it, in order to justify the risk. Do you believe that? Well do yer, punk? You feelin' lucky?  :D
    I'm not feeling very lucky right now. I'd like a quieter life on that front. But then again, I'm a grumpy old git.
  • IdleHans
    IdleHans Posts: 10,968
    I've just put a chunk on a 12m fix at 5.25% with bank of Egypt via raisin, fscs protected. I fully expect rates to bump up again this month, so I'm keeping a fair bit back, but that was too good to let past. 
    I like my fixed term deposits staged so they mature at regular intervals.
  • WishIdStayedinthePub
    WishIdStayedinthePub Posts: 648
    RaplhMilne said:
    Showmetheway2gohome said:
    My lad works for NHS and they have a salary sacrifice car leasing scheme. Not sure how this works or affects his pension long term 
    does anybody use this scheme or know how it works. Maybe our pension expert golfie 

    He gets a new Tesla for 3 years with everything covered except paying for electric. So it’s insured any thing breaks or needs new tyres it’s covered for 3 years 
    he is going to pay £330 a month but has a reduction of 
    £70 in nic
    £103 in Tax 
    £72 in pension
    so his worried about money coming out his pension so his thinking can he top his  NHS pension up or invest in a private pension to make up what his losing. 
    Not sure how this works really has anyone else used this scheme or knows how it works. 
    Never heard of “Salary Sacrifice” as a tool to purchase a car. I used this to pay into my pension. This meant in theory the reduction in my salary of £1000 per month.  This was money I was paying 40% tax on, so went into my pension, Tax Free and  I also paid no NI which was about 2%. On top of that because my employer (Lloyds paid no NI on the £1000) that saved them 13% , so they gave me a 5% top up on my pension contribution. 

    So instead of taking home £580 each month, My pension contribution was £1070. 

    Obviously NHS pay a percentage of salary as pension. As salary sacrifice lowers your salary, then the % contribution is reduced in line. 

    Now you know why so many people are buying them.  I must be just about the only person I know who owns a company that hasn't bought an electric car - it's effectively a 62% discount on net income (1/1.2 VAT * 0.75 Corp Tax *(1-0.3835) Dividend Tax.  Makes those Porsche Taycans look a bit more reasonable with that kind of money off.  As i understand it, that benefit was extended to company car schemes, hence the offer your son is getting.

    A friend of mine in the car trade said that the resale values are horrendous - there's such a poor demand for second hand EVs.  But still not so bad that the discount makes it a worthwhile new purchase.

    I think it's an outrageous waste of tax payers money and, yet again with Green subsidies, the poor subsidising the rich.  But there you go. 
  • bobmunro
    bobmunro Posts: 20,844
    WishIdStayedinthePub said:
    RaplhMilne said:
    Showmetheway2gohome said:
    My lad works for NHS and they have a salary sacrifice car leasing scheme. Not sure how this works or affects his pension long term 
    does anybody use this scheme or know how it works. Maybe our pension expert golfie 

    He gets a new Tesla for 3 years with everything covered except paying for electric. So it’s insured any thing breaks or needs new tyres it’s covered for 3 years 
    he is going to pay £330 a month but has a reduction of 
    £70 in nic
    £103 in Tax 
    £72 in pension
    so his worried about money coming out his pension so his thinking can he top his  NHS pension up or invest in a private pension to make up what his losing. 
    Not sure how this works really has anyone else used this scheme or knows how it works. 
    Never heard of “Salary Sacrifice” as a tool to purchase a car. I used this to pay into my pension. This meant in theory the reduction in my salary of £1000 per month.  This was money I was paying 40% tax on, so went into my pension, Tax Free and  I also paid no NI which was about 2%. On top of that because my employer (Lloyds paid no NI on the £1000) that saved them 13% , so they gave me a 5% top up on my pension contribution. 

    So instead of taking home £580 each month, My pension contribution was £1070. 

    Obviously NHS pay a percentage of salary as pension. As salary sacrifice lowers your salary, then the % contribution is reduced in line. 

    Now you know why so many people are buying them.  I must be just about the only person I know who owns a company that hasn't bought an electric car - it's effectively a 62% discount on net income (1/1.2 VAT * 0.75 Corp Tax *(1-0.3835) Dividend Tax.  Makes those Porsche Taycans look a bit more reasonable with that kind of money off.  As i understand it, that benefit was extended to company car schemes, hence the offer your son is getting.

    A friend of mine in the car trade said that the resale values are horrendous - there's such a poor demand for second hand EVs.  But still not so bad that the discount makes it a worthwhile new purchase.

    I think it's an outrageous waste of tax payers money and, yet again with Green subsidies, the poor subsidising the rich.  But there you go. 
    They are very reasonable at full price :)
  • WishIdStayedinthePub
    WishIdStayedinthePub Posts: 648
    Ibobmunro said:
    WishIdStayedinthePub said:
    RaplhMilne said:
    Showmetheway2gohome said:
    My lad works for NHS and they have a salary sacrifice car leasing scheme. Not sure how this works or affects his pension long term 
    does anybody use this scheme or know how it works. Maybe our pension expert golfie 

    He gets a new Tesla for 3 years with everything covered except paying for electric. So it’s insured any thing breaks or needs new tyres it’s covered for 3 years 
    he is going to pay £330 a month but has a reduction of 
    £70 in nic
    £103 in Tax 
    £72 in pension
    so his worried about money coming out his pension so his thinking can he top his  NHS pension up or invest in a private pension to make up what his losing. 
    Not sure how this works really has anyone else used this scheme or knows how it works. 
    Never heard of “Salary Sacrifice” as a tool to purchase a car. I used this to pay into my pension. This meant in theory the reduction in my salary of £1000 per month.  This was money I was paying 40% tax on, so went into my pension, Tax Free and  I also paid no NI which was about 2%. On top of that because my employer (Lloyds paid no NI on the £1000) that saved them 13% , so they gave me a 5% top up on my pension contribution. 

    So instead of taking home £580 each month, My pension contribution was £1070. 

    Obviously NHS pay a percentage of salary as pension. As salary sacrifice lowers your salary, then the % contribution is reduced in line. 

    Now you know why so many people are buying them.  I must be just about the only person I know who owns a company that hasn't bought an electric car - it's effectively a 62% discount on net income (1/1.2 VAT * 0.75 Corp Tax *(1-0.3835) Dividend Tax.  Makes those Porsche Taycans look a bit more reasonable with that kind of money off.  As i understand it, that benefit was extended to company car schemes, hence the offer your son is getting.

    A friend of mine in the car trade said that the resale values are horrendous - there's such a poor demand for second hand EVs.  But still not so bad that the discount makes it a worthwhile new purchase.

    I think it's an outrageous waste of tax payers money and, yet again with Green subsidies, the poor subsidising the rich.  But there you go. 
    They are very reasonable at full price :)
    I've never met anyone who paid anywhere near list for one!
  • bobmunro
    bobmunro Posts: 20,844
    WishIdStayedinthePub said:
    Ibobmunro said:
    WishIdStayedinthePub said:
    RaplhMilne said:
    Showmetheway2gohome said:
    My lad works for NHS and they have a salary sacrifice car leasing scheme. Not sure how this works or affects his pension long term 
    does anybody use this scheme or know how it works. Maybe our pension expert golfie 

    He gets a new Tesla for 3 years with everything covered except paying for electric. So it’s insured any thing breaks or needs new tyres it’s covered for 3 years 
    he is going to pay £330 a month but has a reduction of 
    £70 in nic
    £103 in Tax 
    £72 in pension
    so his worried about money coming out his pension so his thinking can he top his  NHS pension up or invest in a private pension to make up what his losing. 
    Not sure how this works really has anyone else used this scheme or knows how it works. 
    Never heard of “Salary Sacrifice” as a tool to purchase a car. I used this to pay into my pension. This meant in theory the reduction in my salary of £1000 per month.  This was money I was paying 40% tax on, so went into my pension, Tax Free and  I also paid no NI which was about 2%. On top of that because my employer (Lloyds paid no NI on the £1000) that saved them 13% , so they gave me a 5% top up on my pension contribution. 

    So instead of taking home £580 each month, My pension contribution was £1070. 

    Obviously NHS pay a percentage of salary as pension. As salary sacrifice lowers your salary, then the % contribution is reduced in line. 

    Now you know why so many people are buying them.  I must be just about the only person I know who owns a company that hasn't bought an electric car - it's effectively a 62% discount on net income (1/1.2 VAT * 0.75 Corp Tax *(1-0.3835) Dividend Tax.  Makes those Porsche Taycans look a bit more reasonable with that kind of money off.  As i understand it, that benefit was extended to company car schemes, hence the offer your son is getting.

    A friend of mine in the car trade said that the resale values are horrendous - there's such a poor demand for second hand EVs.  But still not so bad that the discount makes it a worthwhile new purchase.

    I think it's an outrageous waste of tax payers money and, yet again with Green subsidies, the poor subsidising the rich.  But there you go. 
    They are very reasonable at full price :)
    I've never met anyone who paid anywhere near list for one!
    True.
  • PragueAddick
    PragueAddick Posts: 22,145
    On the cash deposit front, I've just - thanks to reccos on the MSE thread - taken out a 1 year fixed with (previously unknown to me) DF Capital at 5.15%. 

    I wonder for how long those more ITK about banks and related businesses think 5% plus will be offered?  As @IdleHans says, it can be smart to spread your purchases of such bonds across a year, so you get the interest income at various times. But then timing becomes key. I suppose that they will still be around for as long as no BoE rate drop is in sight?

    That said Charter Savings offer a one year with monthly interest payment at 4.98% so I will move money out of the instant account I have with them, to take some of that. The pain they inflict on you for this is that you have to send your money back to your nominated external account, and then send it back all over again to Charter Savings. This seems to be a quite common hassle, and I presume it's a quirk in the regulatory system?
  • Rob7Lee
    Rob7Lee Posts: 9,595
    Based on the 2-5 year rates I think you have maximum 12 months before those headline rates start to reduce, maybe slightly earlier. I know a couple of people who've put quite large sums (6 figures) in 5 year fixes despite them paying the same as 1-2 year accounts.
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  • golfaddick
    golfaddick Posts: 33,628
    As for interest rates. Investment community are pricing in base rate increasing to 5.5%. Some saying 5.25% but certainly at least 2 more increases. 

    A lit of 5 year fixed rate mortgages went up at the end if last week. Before that I was seeing around 4% for a good LTV. Now they are closer to 4.5%
  • holyjo
    holyjo Posts: 1,326
    Showmetheway2gohome said:
    My lad works for NHS and they have a salary sacrifice car leasing scheme. Not sure how this works or affects his pension long term 
    does anybody use this scheme or know how it works. Maybe our pension expert golfie 

    He gets a new Tesla for 3 years with everything covered except paying for electric. So it’s insured any thing breaks or needs new tyres it’s covered for 3 years 
    he is going to pay £330 a month but has a reduction of 
    £70 in nic
    £103 in Tax 
    £72 in pension
    so his worried about money coming out his pension so his thinking can he top his  NHS pension up or invest in a private pension to make up what his losing. 
    Not sure how this works really has anyone else used this scheme or knows how it works. 
    I’m doing it …. Pretty similar working fine 
  • TelMc32
    TelMc32 Posts: 9,054
    PragueAddick said:
    On the cash deposit front, I've just - thanks to reccos on the MSE thread - taken out a 1 year fixed with (previously unknown to me) DF Capital at 5.15%. 

    I wonder for how long those more ITK about banks and related businesses think 5% plus will be offered?  As @IdleHans says, it can be smart to spread your purchases of such bonds across a year, so you get the interest income at various times. But then timing becomes key. I suppose that they will still be around for as long as no BoE rate drop is in sight?

    That said Charter Savings offer a one year with monthly interest payment at 4.98% so I will move money out of the instant account I have with them, to take some of that. The pain they inflict on you for this is that you have to send your money back to your nominated external account, and then send it back all over again to Charter Savings. This seems to be a quite common hassle, and I presume it's a quirk in the regulatory system?
    Mentioned it before, but Barclays have been paying 5.12% AER (5% gross) on their Blue Rewards Rainy Day Saver Account. Interest is paid monthly. Snag is that it is only for balances up to £5k. 
  • mendonca
    mendonca Posts: 9,405
    Quite a snag that you can only earn approx £250 a year in interest from it.
  • TelMc32
    TelMc32 Posts: 9,054
    mendonca said:
    Quite a snag that you can only earn approx £250 a year in interest from it.
    Seems to be common amongst the established names. Nationwide offering 5%, but only up to £1,500. HSBC have 4% up to £10k, then it drops to 2.3% (no max though). Santander 4% but capped at £4k. All instant access accounts, which is why the big banks cap the max. 

    If you can give 3/4 months notice, there are good rates (4.45%) out there with £250k-£1m max limits.
  • redman
    redman Posts: 5,285
    PragueAddick said:
    Friends, I hope you've all noticed that the news earlier this week on UK inflation has sparked a big upward twist in savings rate offers.

    On a one year fix you can now get 5.1% with Secure Trust, and 5.05% with Charter savings bank. The latter will give you 4.98% if you'd like to at least get the  interest monthly. 

    On instant access HSBC went up a full half% point to 4% (albeit it's capped at £10k and you have to have a current account.)

    Secure Trust offer 3.8%. Others are bound to react. 

    If you want to stay on top of all this you deffo want to stop by the MoneySavingExpert forum that has nicked the title of this thread :)

    And this now should give the older/more cautious investor pause for thought. If you stay in equity markets, rathter than take up one of those fixed rate deals, it means that you are confident that this time next year the FTSE250 will be above 20,100. A fair bit above it, in order to justify the risk. Do you believe that? Well do yer, punk? You feelin' lucky?  :D
    I'm not feeling very lucky right now. I'd like a quieter life on that front. But then again, I'm a grumpy old git.
    @PragueAddick . I'm not sure if this quite right. I think you forgotten bothe dividend yield and tax. I haven' got access to it right now but I think div yield is currently 3% ish. For Uk taxpayers at least it is becoming hard to avoid tax on interest earned. For anyone in higher tax bracket of 40%, there is no personal savings allowance and so even 5% interest becomes 3% net. However investing in a  FTSE fund, the dividend is effectively rolled up into the fund and then potetially liable to CGT upon realisation. CGT taxation is much more flexible and easier to avoid. On this basis FTSE levels only need stay at current levels to be equal. Any growth giving a gain. 

    Does certainly vary on individual circumstances.

    Please correct me if I have made wrong assumptions here. 
  • Rob7Lee
    Rob7Lee Posts: 9,595
    Think its 45% who get no PSA, 40% ers get £500
  • LargeAddick
    LargeAddick Posts: 32,561
    First Direct offering 7.1% on a regular saver. Transfer from £25 to £250 per month from your First Direct current account. Simples.
  • guinnessaddick
    guinnessaddick Posts: 28,629
    LargeAddick said:
    First Direct offering 7.1% on a regular saver. Transfer from £25 to £250 per month from your First Direct current account. Simples.
    Took it 6 out ago, it was 7% with a max of £300 per month.
  • redman
    redman Posts: 5,285
    Rob7Lee said:
    Think its 45% who get no PSA, 40% ers get £500
    My mistake. I had thought it was taken away in last budget. Wrongly it seems.
    Mind you £500 is the interest on £10,000 at 5%. 

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