Interest on savings (I'm 16 am i being conned)?

Question

Last year i inhereted some money from my nan.
At the moment I earn in interest what comes to about £386 per week. I have been told though in a compound account i could get up to £1,000. Can i get one of these accounts at my age. If so how do i go about this?
Or would i be better off buying something instead like a house?

Answer 1

The interest you're making sounds about right, but I'm not sure about the compound. Get a parent or an adult friend to talk to a couple of different banks for you and see.Take your time doing this, don't rush.

Also, as far as investing in a house goes, you may have to have someone "proxy" for you, as you aren't yet 18 and probably aren't allowed to sign any kind of contracts like that. I'm not sure, but check into that. Be careful (and weary) of any lawyer you might hire to do this, make sure they don't scam you for all your money! You could purchase a house and rent it out - make enough on rent to pay the mortgage and maybe a little extra in your pocket. Real estate (in a good location) almost never depreciates and you can always resell the house later down the road.

I, for one, would rather just sit on the money and collect the interest. Learn how to trade on the stock market and invest the money you make every week.

Answer 2

There is always money in houses. That's an economic fact, and house prices are expected to continue to rise steadily for many more years (even if there might be blips along the way). If you're looking for long-term growth which is a little risky but has big rewards then you should buy a house in an up-and-coming area and rent it out. That way you get the rent and you can sell the house once the price has risen. You'll have to put it in the name of someone older than you, though.

Alternatively, there are many banks and building societies that offer good rates of interest - check out www.thisismoney.co.uk to compare interest rates. There is no risk involved in this and compound interest really does work wonders!

You could always put some of the money in Premium Bonds (www.nsandi.co.uk) up to a maximum of £30,000, with a chance to win a million pounds every month, and many more small prizes. Your money is guaranteed and the potential gains are huge.

Or of course you could play the stockmarket, which is always risky but often profitable. A safer way to do this would be to try a 'Guaranteed Equity Bond' which guarantees your initial investment and may offer up to 50% of any rises in the stockmarket throughout the year.

If you have a substantial amount, I would advise you see an independent financial adviser, who will be able to advise you better. Good luck!

Answer 3

There isn't a standard answer for you problem, [ money is a problem] but i will try. being 16 you want to preserve your money, and you want it to work hard for you. If you go with a compound account you will earn more money but it will pay at the end of the contract. If you need the money for you day to day living, then you will get a regular account. your very young to even think about buying a house, [you got your schooling to do and then a job that could take you anywhere, so a house is way to early for you.] But when you do get out of school you got to live somewhere. If you have a regular account it is very easy to change it into a compound account.

Answer 4

You have to let us know what you are starting with (the principal amount), the Interest %, and your goals (i.e: I would like to have 1 million in my account by the time I retire)

There are simple formulas to calculate all that for you.

If you want, contact me directly in my profile or 360 page.

Thanks!