Okay so in a previous post I outlined my 5-year financial goal – to buy a house in London by the time I’m 30. I know it’s a big old target, but it’s achievable, as long as I’m smart with my money.
But in order to be smart with my money, I can’t just let it sit in a fucking shitty ISA now, can I?
So where else can I stash it?
Santander Easy ISA 👎
So currently I have an ISA with my ‘traditional’ bank – Santander. More specifically, I have an Easy ISA. When I was at Uni I had a waiting job, as students often do. I made a stupid amount of money and my parents told me to start stashing some of it in an ISA, and now here we are.
(If you’re wondering, I never put any of it away. I just spent it all on drink. I miss student life…)
But anyway, I’m here with my Easy ISA. The Santander Easy ISA nets me a whopping 0.10% interest on balances up to £40k.
To put that into context, if I did miraculously have £40k, I would earn £40 interest IN A YEAR. Is that some sort of sick joke? It’s not even the same as the Bank of England interest rate, so in a year my money would actually be worth less.
So obviously I can’t put my money in there because I’m not a fucking idiot. So this led me to seek out other opportunities.
Atom Fixed Saver 💰
Because of my natural love of startups, especially FinTech startups (looking at you Monzo), I’d heard about Atom a little while back and heard that their current account had a good interest rate of 1% – pretty much unheard of, right?
So I looked into their savings accounts. Atom offers a Fixed Saver account that can last over either 1, 2, 3 or 5 years, with varying interest rates. The only gag is that, as a fixed saver account, your money gets locked away. Now, while I was admittedly looking for this because I’m terrible with money, I don’t think I could lock my money away for any longer than a year.
The 1-year account gives me an interest rate of 1.5%, which I didn’t think was too bad. However, after discussing with both of my parents, they led me on to something with a much higher interest rate.
Funding Circle 💸
Funding Circle is a system of peer-to-peer lending whereby you deposit money into the scheme and you can lend to smaller businesses that need your help.
Like I said, my mum put me onto this. She currently gets around 6% interest on the money she’s deposited, so she suggested I give it a go too.
So I’m going to try and stick some money into Funding Circle and see what happens, but might have to dig around a bit more to find somewhere else to put the rest of my eggs.