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Doing something with (growing) money.


carl0s

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I didn't but I also get the 6.25 on the 5000 and figured that plus the 383.25 from the 12% account plus whatever Icesave gave me was pretty good. Did I mention that the 11k was "borrowed" from a 0% credit card, so effectively I'm earning interest on the banks money ;)

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I didn't but I also get the 6.25 on the 5000 and figured that plus the 383.25 from the 12% account plus whatever Icesave gave me was pretty good. Did I mention that the 11k was "borrowed" from a 0% credit card, so effectively I'm earning interest on the banks money ;)

 

Look up stoozing on Moneysavingexpert.com

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I didn't but I also get the 6.25 on the 5000 and figured that plus the 383.25 from the 12% account plus whatever Icesave gave me was pretty good. Did I mention that the 11k was "borrowed" from a 0% credit card, so effectively I'm earning interest on the banks money ;)

 

Ah, now that sounds even better :D

Only problem is, the one or two times I've tried for a balance transfer or something like that, they've ended up giving me a paltry limit and achieving nothing. I suppose the fact that I have credit cards with very little owed on them now might help my ability to get more cards, whereas before I had £3,100 owed on a £3,200 card.

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I used virgin, as at the moment you can do a transfer direct to your current account at 0% with a 2.something % fee (you don't need to use the Egg Money card at the moment as indicated in the stoozing artice). Earning 12% (drip fed) plus whatever other interest you earn on the money is better than nothing. It's definitely time we played the banks at their own game.

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I used virgin, as at the moment you can do a transfer direct to your current account at 0% with a 2.something % fee (you don't need to use the Egg Money card at the moment as indicated in the stoozing artice). Earning 12% (drip fed) plus whatever other interest you earn on the money is better than nothing. It's definitely time we played the banks at their own game.

 

But according to my calculations you really ought to think of that 12% drip-feed as being the same as a 6.38% savings account, which to be fair is still close to the best savings accounts.

 

but again I've forgotten about whether you will actually earn any interest from the account that the drip's coming out of.

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I found a drip-feeding calculator on moneysavingexpert. It looks good! I put some figures in for your £6,000, TyranoSupraRex.

 

Assuming your Icesave account pays 6%, and you drip-feed that at £500/month into your 12% Halifax regular saver, you will end up with £441 profit, which means effectively you are getting 7.35% *after* tax if you are a basic rate tax payer. I think that's pretty good!

 

If you only received 10% from Halifax instead of 12%, and again you were a basic rate tax payer, you'd make £390 profit from your £6000, which equates to 6.5% *after tax* for a basic rate tax payer.

 

This technique sure seems to beat even an ISA, although I understand that ISA's should come first.

 

http://www.moneysavingexpert.com/savings/best-regular-savings-accounts#savingscalc

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This is still all very mind boggling. I need to work out a £10,000 plan.

 

Since the regular saver account doesn't allow more than £500 to be deposited a month, this keeps the gains under control, but the gains for the second year ought to be quite considerable if you leave all the money in there.

 

Are there some restrictions on this 12% account? - is it first year only or something?

 

I suppose if you had £12,000, then it might be worth running this scheme twice with different banks so that you could get close to 6.5 - 7.35% after tax on the whole £12,000 in just one year.

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Ah, but it's all relative to inflation. If my 24,000 Turkish lira grows by 14%, but everything in existence in Turkey grows in price by 50% and the exchange rate also reflects this, then the money's become worthless whilst sitting in that bank account.

 

Forget that one then.

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Premium bonds are only really any good if you invest the full amount (30k IIRC)

 

I'd see a financial advisor and they will know all the latest offers, and will be able to advise you on what to go with based on how much risk you are willing to take etc.

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Premium bonds are only really any good if you invest the full amount (30k IIRC)

 

I'd see a financial advisor and they will know all the latest offers, and will be able to advise you on what to go with based on how much risk you are willing to take etc.

 

But they cost money don't they? I have a customer who is one but other than informal chat when I next see her, I'd feel guilty that I always bill her properly yet I'm asking for free help, although to be fair I don't bill for phonecalls/advice..

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Well, that's expected, although it makes no difference if you buy a large chunk in one go, or buy that chunk bit-by-bit over a period of time. When it comes to the draw, the more bonds you have the better your chances.

 

Each bond (costing £1 each), is like a a line on the lottery (although it's just a single number). So if you 'invest' £10,000 then you have 10,000 numbers, so when they draw the numbers, the chance of you having one of the drawn numbers is obviously higher than if you only had 1 number.

 

Sorry mate my above post didn't make convey what I meant to say..... shouldn't try work and post on forums at the same time (less work needed).

 

Whilst your above comment is valid, what I meant to say was that for some reason they suggest spending 10k in one go and holding a large block (I.e. holding tickets 1-10,000) increases you chance of winning as opposed to buying tickets at various times (I.e. 1-70, 101-109 etc) in which your 'numbers' are more spread out. I think it has something to do with the way the bond numbers are drawn.

 

- from memory i think it says this in the premium bond leaflets at the post office (I will check for you).

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But they cost money don't they? I have a customer who is one but other than informal chat when I next see her, I'd feel guilty that I always bill her properly yet I'm asking for free help, although to be fair I don't bill for phonecalls/advice..

 

Chances are they are free and make commission from setting up the bank accounts etc for you.

 

Just make sure they are independent otherwise you will not get advice which is in your best interests.

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funny enough - ive just put some money into premiums bonds - been in for 2 months now and already won a £100, Each month i have won £50, which is not bad. Its well worth putting ya money into something like that.

 

If your bit of a risk taker, why dont you double up your money - high risk but potentially good way to double ya money. A while back i put alot of money on football teams - teams like man u, chelsea and real madrid to beat smaller teams, which the view to stick £500 for them to win, and gain back between £250 -£500. If you was to do that a couple times on a saturday, im sure you will double ya money.

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Shouldn't inflation affect a country's currency exchange rate?

I'm confused, but over the last two years, the New Turkish Lira (YTL) has gained 19% on the pound. That combined with 14% interest in the Turkish bank account, surely means you'd have done really well to put £10k into YTL in a Turkish bank account two years ago and moved it back into GPB today? Yet inflation is maybe 10% per year there (that's considered awesome, based on their history of 70%..), so everything has got 20% more expensive (in the two years), for the Turks, yet you'll get more pounds now for your YTL than what you started with, plus you got 14% interest.

 

Am I missing something, or is it just the benefit of hindsight, and therefore expected to go back the other way anytime now?

 

18th July 2006: £1 got you 2.86420 YTL

Today (2yrs on), £1 gets you 2.4080 YTL

 

So I presume it sort of goes the other way, i.e. to get your pound back it costs only 2.4 of your Liras, so you have gained 0.46 lira.

I realise there will be profits for the exchange people in there, and those are interbank rates.

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But they cost money don't they? I have a customer who is one but other than informal chat when I next see her, I'd feel guilty that I always bill her properly yet I'm asking for free help, although to be fair I don't bill for phonecalls/advice..

 

I think some do charge and some don't, I assume that the ones that don't get commision from the banks etc

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