Saving a small amount over a long period of time, need guidance please

A question about : Saving a small amount over a long period of time, need guidance please

Hi, I don't have much spare money but I am looking at saving around Ј5 a week + any spare over a long period of time (10 years+) I don't mind high risk but I am looking for a much better rate than what my bank is currently offering. Any suggestions what I can do with it, I was thinking a stocks and shares isa but with fees would it be worth it investing such a small amount.

Thanks in advance, I will consider all options
Regards Keith

Best answers:

• For a little amount consider the 5% bank accounts available, even the Halifax offer 100 switch plus 5 a month .. But no interest .
  Before you invest you ideally need 5-10 years for investments and savings for emergencies of at preferably 6 months.
• Ј5 a week or Ј21.67 in an average month (maybe Ј25 with top ups?) is not really enough to make investments.
  As you say, with fees for dealing with your tiny contributions it will eat up your returns even if you can find a fund provider that handles such small amounts, and with the amount involved there definitely isn't any point having an ISA wrapper around it if you're investing in stocks and shares.
  You can usually find accounts designed for children's long term investments that go as low as Ј25pm but adult products on investment platforms are generally Ј50pm minimum. Could you stretch to a bit over Ј10 a week instead of a bit over Ј5? Then you'll get a whole load of platforms or fund managers to choose from.
  There are some fund managers that offer share plans or ISA plans where you just go to them directly via direct debit and not use a platform. Here's an example that starts at Ј20pm for an ISA. https://www.invescoperpetual.co.uk/s...eyfeatures.pdf
  However, you are limiting your options if you can only make a small commitment, and any fixed charges you incur along the way if the scheme rules change or you want to transfer the ISA elsewhere, will be a relatively big chunk of your pot.
• It's great that you are saving. I always think of the phase. "Save it you've got it, spend it you've had it."
  To be honest such a small amount is best in a savings account.
  I only save low amounts as well, but it slowly builds up.
• Yes I could stretch to Ј50 a month if it openes other options. Thanks for replying
• I'd say investment trust savings schemes are worth a look.
• If this is money surplus to all current requirements and you already have an emergency cash account then simply save weekly into a relatively high interest bearing account (TSB etc.) and then invest the balance annually into something like a Lifestrategy fund of your choice with a low cost platform.
• My rainy day account currently is Ј400 and I pay Ј15 a week into this, I coukd put extra money to this and maybe pay and extra Ј5 to Ј10 a week into it. My rate is rubbish 0.25% in a isa. I am just at a point where I want to put money away and not miss it.
• Why not use a Santander 123 account? I don't know your circumstances but the utility bill rebates seems to easily cover the monthly fee in most cases.
  Having a cash ISA, with financial repression as it is, doesn't make a lot of sense unless you're already sitting on a balance that would take years to ISA wrap again if withdrawn, or you're putting in close to the limit each year.
• Keep adding the same to the rainy day a/c.
  As %rates are dire go for Premium Bonds. Minimum Ј50 SO once initial Ј100 invested, and who knows.
  If good fortune smiles on you consider gold, 5+years as a minimum time frame.
  Best of fortune.
  ..._
• I did consider a Santander 123 account but I have a Halifax reward and already get Ј5 a month so when I compared it was not worth the change. I intend to keep topping up my rainy day account but not sure when to cap it. Keith
• Open a TSB Classic Plus, in addition to your Halifax Reward. Remember to opt for paperless statements AND communications.
  Move your Ј400 rainy day money into it.
  Each week (I presume you are paid weekly) move Ј125 from Halifax to TSB and Ј105 (or less to save more) from TSB to Halifax.
  When you have a reasonable amount, perhaps after a year, decide how much you want to keep as instant access rainy-day money, and use the rest to buy an investment fund.
  Keep saving, and periodically add to your investment.
  Quote:
• What type of isa could I use to run along side my emergency fund? as I say I don't require the money I save and overall I can comfortably save Ј25 a week including topping up the emergency fund. I have an halifax account and I'm happy with the service I get from them So do these offer me any options? My emergency fund is currently sat at Ј415 in a halifax isa saver online giving me 0.25%. Would I be better shifting the emergency fund elsewhere to get a better rate considering I may need to get at some of this money from time to time? Thanks