What do I do with my money?

[bekah]

Hey,

I am in a bit of a quandry about what to do with my money, I have around �6000 spare and want to contribute another �250 a month. The account my money is currently in makes nothing, and Barclays keep telling me it is in the best account possible (last year I made around �17).

I am a very loyal customer and find it hard to change - but I am hoping to get a house next year and need to make more money on my savings.

I was hoping to see an independant financial advisor, but don't know where to start looking for one and how much do they cost?? (I am in Cheshire if thats any help)

Thanks very much!

[bednobs]

while you are sorting out an advisor, for good ness sake stick it in an ing account - you will make 20 pound interest per month

[birdwoman]

If you have a Barclays current account and pay �1000 or more a month in you can save up to �250 a month in a 12.5% regular savings account (much higher than an ING). You could deposit the rest of your money into another savings account - go onto moneysupermarket to see who's giving the best rates. (you only have up till the 28th of February to open the Barclays regular saver account (you'll definitely make more than �17 on �3000 paid in over the year)

[BigDogsWang]

�17 is a joke. With roughly the same amount as you, I get around �200 per annum interest from my Alliance and Leiceter Plus Saver account.

[Nether Edge]

Get an ISA this tax year (up to �3000 cash or up to �7000 stocks/shares), unless you have one already for this tax year which ends on 5 April.

[WendyS]

If you're going to need your money within the next year or so for a house, don't buy an equity ISA as you ideally need to be in the stockmarket for at least 5 years, and the value of your money could drop. I'd find the best cash ISA you can before the end of this tax year on April 5th and put �3000 in. Then on April 6th open another �3000 Cash ISA for the next tax year. (Just Google "Best Cash ISA's" and lots of good options will come up.Check that they don't have any penalties for transferring to other providers if their interest rate becomes uncompetitive. Also investigate whether Barclays are still running the 10% interest offer on their Regular Saver A/C which allows you to save up to �250 a month for 12 months as long as you have a current account with them as I believe they may just have upped the interest rate to 12% for a brief period if you open it before the end of January. Don't go anywhere near any other Barclays savings accounts as they don't give good returns. In your case I don't think you really need an IFA for such simple saving advice as they'll probably charge you commission for something that isn't suitable for your short term saving objective.

[yummymummy]

If it is relevant, make overpayments on your mortgage as this will save you thousands over the years.

If not relevant, do what everyone else said!!