Host:		Hello and welcome to today's chat. Hetal is here just settling in ready to take your questions.
Hetal Parmar:		Hello everyone - do send in any questions you have!
Sally:		How many savings accounts should I have? Is it best to keep all my money in one account to make the most of the interest, or should I spread it around?
Hetal Parmar:		There are some key points to think about. I would recommend spreading your money in this way. First of all, have a pot for your day to day needs, this could well be a current account with a high rate of interest. Next, its always good to have a rainy day fund and a good rule of thumb is to have about three months income in it. Thirdly, have a pool of money for any specific items that you are saving for, such as a new car, holiday or wedding. And lastly, think about longer term financial needs and start building up your long term fund. The best thing you can do is get some further professional advice from your financial adviser who will look at your financial situation and make some recommendations. If you don’t have your own financial adviser, please come and speak to an Alliance & Leicester (A&L) financial adviser by booking a no-obligation appointment.
Greg Tyler:		What is the best place for my money now?
Hetal Parmar:		When choosing a savings account, you must ensure that you pick an account which is suitable for your individual needs. The following three things might help you decide: First of all, obviously, the rate of interest you get. But this needs to be balanced by the next two. Secondly, access to your money. Often the best interest rates are available online only but if you want branch or telephone access, then you might need to trade-off that access in exchange for the rate. Thirdly, think about the term of the account. For example, have some money set aside that you can access in an emergency, whilst also having a long term pot that you don’t want to touch. This could be a fixed rate bond, or indeed a longer term interest plan through your financial adviser.
Steve Silver:		At what age should people start looking at saving for their retirement - I am not talking about a pension here, just savings!
Hetal Parmar:		Start as early as possible! And remember its never too late to start saving. I would strongly encourage anyone to start saving as soon as they can, whether it be towards retirement, or just for a rainy day. We recently carried out research which found that the majority of non-savers claim their biggest hurdle to saving is not having enough cash left over after paying all the bills. Saving even a small amount each month because it will soon add up to a nice rainy day fund. It’s equally important to make your savings work as hard as possible. It’s good to know that eight out of ten of us look for a good rate of interest when choosing a savings account and there are some great deals to be had at the moment. When choosing a deposit account, don’t forget to make the most of tax-efficient savings schemes – a cash ISA is a good first port of call. It’s wise to consider how much you can comfortably afford to put by each month and then set up a standing order from your current account, into a savings account. In other words, treat it like paying another bill. Even small amounts can soon grow into a substantial savings pot.
Sally T:		Where's the safest place to invest an ISA?
Hetal Parmar:		The safest kind of ISA would be a Cash ISA because there is no risk to your capital and interest is earned without deduction of tax. Cash ISAs make the perfect tax-free haven for savings and you can start saving with as little as £1 and if you need immediate access to your money, then there are plenty of ISAs available that allow you to make withdrawals whenever you want. If you are willing to tie your money up for a longer period of time, it might be worth looking at a Stock & Shares ISAs. Speak to a financial adviser to get the right account for your needs.
Tony Anderson:		I have recently inherited £15,000 and don’t know where to put it away should i put it in an ISA, over pay on my mortgage. Or should I look at investing?
Hetal Parmar:		A good rule of thumb is to pay off your debts first. However, it depends on your personal circumstances. Remember you do need day to day money and an emergency fund in your car breaks down, for example. Again, speak to a financial adviser who will undertake a full review on your financial situation and will then be able to give you advice on how to make the most of your inheritance.
mrs r wilson:		I am near to retirement and want to be able to get income from my savings – is this possible? To withdraw a small amount each month to supplement my pension?
Hetal Parmar:		Yes this is possible. There is a new breed of savings accounts that pay a high rate of interest on the basis that money is put away for the longer term, but they also provide you with the comfort of knowing you can access your money if you really need it. To encourage long term savings, interest is not earned for months in which withdrawals are made. However, many of these accounts pay interest monthly and this interest can be paid away to linked current account in order to top up your monthly income. When interest is paid away in this way, it is not treated as a withdrawal. There are also several longer term investments designed to provide regular income and your financial adviser can give you detailed advice on this based on your needs.
Cazza:		I've got £1000 which I'd like to save. I won't need this money for at least a year so I'm considering a fixed rate bond...however I'm worried rates will rise and I'll end up with a poor interest rate. What do you think?
Hetal Parmar:		It is hard to speculate on the future with accuracy, and I would suggest that instead you think about what you would like this money to do for you in the future. As noted in an earlier question, there are three good rules of thumb to consider: 1) interest rate 2) access to your money 3) long-term versus short-term. You need to find the right balance for you and this is something that a financial adviser can help you with should you wish to seek further advice on this.
Marilyn Brown:		Do notice accounts still exist?
Hetal Parmar:		Yes, there are some Notice Accounts still available. However, you will find many online instant access accounts as well as fixed rate accounts (such as one-year fixed rate bonds) provide a better return than Notice Accounts. Notice Accounts are increasingly being replaced by a new generation of so-called ‘disciplined’ savings accounts, which as mentioned previously, encourage long term savings (instead of dipping in and out) whilst also allowing access to your money when you really need it.
Anon:		I read that interest rates are predicted to fall next year, do you think its worth getting on a fixed deal now or waiting to see what happens?
Hetal Parmar:		Speculating on the future is always risky – instead think about being prepared for whatever the future may hold. Make sure you have a number of savings pots for your financial needs, and get some professional advice for you individual circumstances.
Confused saver:		Sorry, I'm a bit muddled...why should there be exclusive savings accounts for over 50s?
Hetal Parmar:		Research shows that for most people, as they go through life, their financial situation changes and different age groups have different requirements. For example, many providers offer a range of different products aimed at different age groups, eg. Children’s accounts and student accounts. The banking industry is now recognising the needs of people as they get older.
David Reynolds:		Are isa savings free of inheritance tax?
Hetal Parmar:		Inheritance tax is a completely separate thing and you need to get advice on it from a qualified financial adviser. On ISAs no tax is deducted from the interest you earn on your capital.
mark:		so sorry, further to David's question, is inheritance tax deducted from ISAs or not?
Hetal Parmar:		Hi Mark. Inheritance tax (IHT) applies to all assets passed on which are above a certain threshold. This may include savings however IHT is a completely different and complex area so make sure you seek some professional advice from your financial adviser on this matter.
Ali Begud:		I find it impossible to save each month and always spend in excess of my monthly salary. Do you have any tips on how I can get on top of my finances?
Hetal Parmar:		Think about making small changes to your daily routine Ali. For example, I have started taking a packed lunch to work and I have cut down on my trips to the cinema. And how about cutting down on the amount of times you go out in the week or bringing in a flask on tea or coffee rather buying a drink whilst you are at work? In short, even making small savings can add up. The other thing to think about is think of savings as another regular bill. In other words, set up a standing order from your current account that goes into your savings account each month and that way saving becomes a regular habit.
Jana Horowitz:		What is a good rate for savings taking inflation into account. I just feel that the money saved now could be eaten up by inflation.
Hetal Parmar:		Inflation is always a worry, especially in a time of rising prices. It’s good to know that, based on the research we have done, that eight of ten of us look for a good rate of return when choosing a savings account. There are plenty of good savings accounts out there with attractive rates. Often these accounts pay in excess of the Bank of England base rate. To find the right account for you, it’s always worth shopping around and there is always plenty of good information available via price comparison sites on the Internet. Alternatively, do pop into a A&L branch where staff will be happy to help!
Jas:		Where is the best place for my short term savings looking for decent interest but want to withdraw if needed?
Hetal Parmar:		As previously mentioned,. there are a number of new style saving accounts called ‘disciplined’ savings accounts which provide a great return but also encourage long-term savings. These may well provide the answer for your needs.
Christine:		Can I switch provider once I've set up an ISA?
Hetal Parmar:		Yes you can. You can transfer existing previous year ISA money to another provider. This relates to Cash ISAs. Do remember, however, that with fixed rate ISAs you may lose interest if you take the money out. And some Stocks and Shares ISAs have their own rules regarding transfers.
Jas:		Hetal, would a cash ISA not be a better bet obviously you are better qualified to comment than me?
Hetal Parmar:		Yes, Jas, good point. Cash ISAs are always a good first port of call if you don't already have tax-efficient savings. Having said that, it's important to spread your money between a number of accounts suited to your individual needs.
mattyboy:		Hi - I've already used up this year's ISA allowance for cash and I don't want to invest the remaining £3,600 in in equities. Are there any other tax free savings accounts I could use?
Hetal Parmar:		You may be surprised to know that there are Stock & Shares ISAs that guarantee your capital (you will be getting your capital back) as long as you hold that account for its full term - eg. 3 or 5 years. These are often called Guaranteed Capital Accounts and they also provide an annual return based on stock market movements. Why not get more information and advice on this from an adviser. An alternative is to look into Premium Bonds. Although there's no guarantee of a return, any winnings are tax free.
b martin:		I have seen your account which means I lose interest if I take my money out. What’s that about?
Hetal Parmar:		A&L has an account called eSaver that is designed for long term savings rather than for regular dipping in, and pays the same level of interest on all balances from £1 up to £500,000. It is one of a new breed of savings accounts which pays a high rate of interest on the basis that money is put away for the longer term but also provides you with the comfort of knowing you can access your money if you really need it. Our research shows that many people prefer having accounts that help them to save for the longer term. To encourage people to become long term savers, interest is not earned for months in which withdrawals are made, except during the month of July when unlimited withdrawals can be made with no loss of interest. Many such accounts are also ideal for savers who need a regular income from their savings, such as the retired, because interest is earned monthly and can be paid away to the linked current account without it being treated as a withdrawal.
mary:		i am a widow and since my husband passed awy i've had to look at money affairs for the first time. we had a building society account for a long time, but i don't know if this is the best place for a lot of money?
Hetal Parmar:		Thanks for your question Mary, and I am sorry to hear of your loss. In any situation, it’s always a good idea to regularly review your savings and make sure that your money is working as hard for you as possible. I suggest that you sit down with a financial adviser who can take a detailed look at your circumstances and make some recommendations. If you don’t have your own financial adviser you could either speak to your existing building society or book a free appointment with an adviser at your local A&L branch. I have mentioned earlier about having three ‘pots of money’ – day-to-day, emergency fund, and a longer-term ‘future-fund’ – and you may want to give this some thought as well.
SteveJ:		I currenty have a savings account which pays yearly interest instead of monthly, is monthly paid interest a better option?
Hetal Parmar:		The short answer is monthly interest is better if you need regular income from your savings.
Sue:		I have invested in ISAs (7k in each) but last statement show a loss! I thought all ISAs were safe and tax freee??
Hetal Parmar:		Hi Sue. There are two types of ISAs: a Cash ISA and a Stocks & Shares ISA. With a Cash ISA your capital is safe and the interest you earn is tax-free. With a Stocks & Shares ISA be aware that you may get back less than what you have put in but these should be seen as longer-term investments.
Farzana:		i am looking to move current account. Can you advise me of any good banks/BS
Hetal Parmar:		Of course we can recommend some great current accounts! The current account market has become really quite competitive over the last couple of years and there are some very good deals out there for you to consider. Price comparison websites always feature the leading offers in the marketplace at any given point in time.
Bjorn:		Should I look for a saving product with a guaranteed rate? Does A&L savings products guarantee their rates?
Hetal Parmar:		Guaranteed rates do give you peace of mind and like many other banks A&L offers accounts with a guaranteed return. We also offer an Online Tracker Account which tracks the Bank of England Base Rate. Do be aware that there are variable rate accounts available which may give you a better rate of return - and the trick is to shop around to find the account that best suits your needs.
spud:		are there many current accounts if you stay in credit earn interst for you
Hetal Parmar:		There are some very good options available that will give you interest on money you have in your current account - for example A&L offers 8.5% AER on balances up to £2500. This type of account could be ideal for your day-to-day needs. At the same time, do think about longer-term savings.
tanya v:		okay then, what are best savings accounts for over 50s? And can you only open one of these products once you are 50?
Hetal Parmar:		Thanks for your question Tanya. Our research shows that, alongside health and the opportunity to travel, financial security is very important for the over 50s. There are plenty of great savings deals available to people over 50, for example, A&L currently offers a fixed-rate savings account paying 7.5% AER, fixed for one year, and this is available to new and existing Premier 50 current account customers. This is only available to those aged 50 and over. You might be interested to know that we are the first - and currently only - bank to offer a current account designed specifically to meet the needs of this age group.
Host:		Unfortunately that is all the time we have for today. Many thanks for all your questions.
Hetal Parmar:		Thanks for all your questions. Before I go here's my top tips which I hope are of use to you all: 1) Save regularly by setting up a standing order and treat savings as another monthly bill. 2) Think about how you can make small savings with small sacrifices, eg. less cinema trips or meals out. These will add up in the long term. 3) Review your savings regularly so that your money is working as hard as possible. 4) Our priorities change throughout our life as we grow older, as does our financial situation. Therefore, be prepared to shop around and get the best deals for you. I hope my advice as been useful, but please remember that all my responses are generic and from a savings perspective. Therefore, you should consult with a financial adviser before making any financial decisions. And finally...don't stop living your life, but remember saving today gives you security for tomorrow!