Save, Save, Save

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Now that we have paid off the majority of our debts, our mindset has definitely turned towards saving as much money as we can. Whilst we still owe some to family and friends, we have a plan in action to pay them back so that we can focus on putting some of our wages in savings each month – I have already suggested to Steve about four different accounts for all the different things we need to save for – otherwise the temptation to overspend on one of those things would be too great.

Between us, we also have a number of cash ISA’s opened up over the years. One from when I was younger has the grand total of £25, another has about 70p so is pretty useless right now but I am reluctant to close it in case I want to use it, despite how easy it is to open a new one. Since the new ISA rules came into effect on the 1st of July allowing a greater amount to be deposited in an account (a maximum of £15,000 split in any proportion between a New Cash ISA and a New Stocks and Shares ISA), I have been considering closing the ones I am not using and opening one of these for our savings.

Scottish Friendly are warning savers not to be drawn into automatically putting all their funds into the cash ISA – with interest rates lowering all the time, investments would be a much better return for their money. I am inclined to agree. We have seen both ends of the spectrum – with Steve having a full cash ISA and then an almost empty one….the interest wasn’t that much difference which seems crazy! To every one investment ISA opened, three cash ISA’s are opened – whilst they seem to be in the minority, I am definitely considering opening an investment ISA – after all, if I am saving I want to get some sort of decent return on my money! They may not offer as much security and incur penalties for access but for a much better return, I don’t care – I don’t want to use the money until it is fully saved up so why not go for something that will benefit me greater in the long run?

We need to completely fund an emergency fund for all life’s little niggles, a wedding fund, a house deposit and savings for Jack for when he is older. Surely it makes sense to try and get the best for our money that we can? Everyone loves getting some sort of interest on the money they put in and cash ISA’s just don’t seem to offer as much as an investment ISA.

So how am I going to save to put into my ISA and savings accounts? Lots of hard work (even considering going back to my old job for a day or two here and there), selling anything unwanted in the house and of course, entering competitions – if I can win cash or prizes I can use for Christmas, that is more savings to go into my ISA.

I think it is great Scottish Friendly are ensuring people make an informed decision before jumping straight in with one of the new cash ISA’s – some people aren’t realising how little they are getting for their money. You can follow Scottish Friendly on Twitter and like them on Facebook to keep up to date with their posts and advice.

Would you ever consider an investments ISA or would you stick to a cash ISA despite not getting much of a return?