I've been checking over all the different savings accounts that are being offered by all the big banks such as, Abbey, HSBC, The Royal Bank Of Scotland and Lloyds TSB. I've since went into a Halifax/Bank of Scotland branch and spoke with a member of staff who told me that with them I could get a rate of 5.50% on my savings and as I have a target goal of £500,000 she says that if I was to save £500 per month then I'd reach that goal in 31 years and 4 months with her bank, and for an investment of £188,025.00, I'll have earned £311,877.08 alone merely by interest. What I want to know is, would you say that it's a decent rate? or can I do much better? I'm wary of invevsting my money with the other investment and shares options options as she's said you can get less money back, what would you do? I'm 27 at the moment and feel I've got to start saving for my retirement hence my asking this question. My wife and I both feel that £500 per month is a fair amount to save.
Answers & Comments
Verified answer
First you need to look at the long term view and consider inflation.
5.5% is not that good, you can get better.
You need to spread your money around to reduce risk.
Although the stock market as higher risk in the long term it will out perform any bank / savings account.
You could see a financial advisor or do it yourself.
If doing it your self you could try investing in a range of options:
Max out on an ISA (pay no tax on intrest)
Investment trusts, You can still spread your money over say 3 or 4 trusts. Again can be avialable as part of an ISA
etc
Try looking in the forums on this website:
http://www.moneysavingexpert.com/
If you just want a savings account, try the skipton building soc, Believe that 6.8% is avialable here.
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I would steer away from this one , shop around or see a freelance financial adviser , the rate is good but there are better out there ,