Are your savings in the best place? Cash Back Alert on a Wealthify ISA
Our Savings Plans
Back in January I wrote about my plans to revolutionise my savings this year. We are in great position with our debt which is tumbling down in size. The debt that once was £15,500, eight months ago, is more than halved in size and we fully intend to repay big chunks each month of at least £1,000 to ensure the debt is gone by the summer months of 2018. The debt is all on a 0% balance deal, so we are also very keen to start saving as well as paying down that debt.
The Emergency Fund
It is very important to us, first and foremost, to have an emergency fund. That savings account that you need to dip into when things go wrong. When the car needs four new tyres, or the washing machine breaks down and you need a new one. A fund that is peace of mind if anything expensive happens you have the fund set aside to cover it.
The positive impact of an emergency fund on your mental health is not to be under estimated. We have built up a fund that it is currently two months’ worth of salary set aside for emergencies. Just the fact that I know I could literally earn nothing for two months (which let’s face it is so unlikely to happen) and we would have the money set aside is such a mental health benefit. Before we had this fund, I would be stressing about lack of funds twenty times a day.
Longer Term – Stocks and Shares ISA
The other savings plan that I wanted to open, having now found the right provider, is a stocks and shares ISA. A slightly frustrating one this is. I have always had a stocks and shares ISA since my first ever pay packet aged 22. I invested a small amount of £25 per month for 14 years and this money was incredibly useful when we extended our house, it funded £8k of the extension! Even after emptying the ISA we carried on investing the £25 per month from scratch. However, we hit a low financial point in April 2017, when the £15.5k debt was faced. The stocks and shares ISA was cashed in and was shut down.
I want to start another stocks and shares ISA fund and invest a decent amount of money each month. It is important to have that money put aside every month and almost forget about it. I am not interested in picking companies to invest in (I have tried in the past and failed!), so a managed fund is always going to be a good option for someone like me. Ten years or so down the line we’ll have a nice big chunk of money to treat ourselves with or maybe help the boys with university or a car or house deposit. See what order I wrote those dreams in!
Wealthify Cash Back Offer
Wealthify is a company I am really excited about with a great offer on their ISA products. This is an offer that I have not seen before and really makes them stand out as a strong investment offering in the market this month. Until 5 April 2018 there is a £50 cash back offer available for the first 100 customers who open an account via this link
The £50 cash back is paid after the initial six-month period into the bank account you use to set up your Wealthify account. If you look at this product in terms of the investment amount required plus the cash back at £50, 10% is a great return after 6 months. I am going to set up an account with Wealthify, I will kick it off with the £500 investment in the first month and then add a further £50 each month. I am excited to keep my readers updated with the progress of the fund and returns I am receiving. Just like my regular debt repayment posts I also want to be writing about my investment returns.
A Robo-Investing Service
Wealthify is a robo-investing service. This means that your money is managed by a smart algorithm along with input from real people. As part of the sign-up process you select a risk profile that suits your needs and requirements and your funds are invested into your selected risk level. The higher your risk tolerance the more potential you have for a higher return but also the higher the risk that you could lose part of your investment.
Wealthify is a simple platform that makes investment easy to understand and to watch your investments change over time. I have always made a good return in my stock and shares ISAs that I have previously held. You can invest upwards of £1 as a lump sum and top up every month, or whenever you like, and there are no fees to withdraw your money or close your fund. Many investment firms require a minimum monthly investment of at least £100 and/or some ask for an upfront sum of over £500. Therefore, this product feels more inclusive to everyone.
There are annual management fees of 0.7% for the first £15k invested, in addition there is an average fund charge of 0.19% per year. This is about the norm for a robo-investment service. The fees reduce when the investment is greater than £15k. Remember that each of us gets an allowance of £20k per year tax-free to invest in ISAs.
Please be aware that any form of investment can go up and down and you may want to consider advice from a qualified IFA. Just make sure they are recommended by a trusted friend and check their investment levels as some will only work with clients with an investment level of at least £150k. This post was written in collaboration with Wealthify.
Mrs MummyPenny T&Cs
- To open a Wealthify Plan you must be a resident of England, Scotland, Wales or Northern Ireland, or the Channel Islands.
- This offer is available to new Wealthify customers only.
- This offer is only available to the first 100 customers who open and fund a Wealthify Plan via Mrs Mummypenny blog by 5th April 2018
- The offer cannot be used in conjunction with any other promotional offer.
- The £50 cashback will be paid after 6 months of funding a Wealthify Plan subject to receipt of a minimum of:
a) £500 as an upfront investment or;
b) £250 upfront and 5 subsequent top-ups of £50. - In order to qualify for the offer you must not withdraw any of the minimum investment amounts in (5) within the first 6 months, from the date your first payment is received by us.
- To validate this offer, new customers must sign up by first clicking the Mrs Mummypenny blog affiliate link, which will allow Wealthify to verify your eligibility for the offer.
- Payment of the cashback will be made by BACS transfer directly into the bank account used to set up your Wealthify Plan.
- Wealthify reserves the right to amend, withdraw or restrict this promotion at any time without notice.
- Wealthify cannot guarantee that you will be accepted as a customer, which is subject to compliance checks when you sign up.
- The Wealthify standard terms and conditions also apply and are not affected in any way by this offer.
- This offer is not open to any employees of Wealthify or Winterflood Business Services.
6 Responses
It’s so important to make the most of savings. Other than ISAs I’m not very familiar with the other options, so it’s interesting to read alternatives, thanks!
A stocks and shares ISA is nice way to invest with a little more risk and hopefully more return. I am going to track the progress of my ISA so will be really interested to report back on how it performs.
I am so bad with money, my savings are virtually non existent! It’s something that worries me a lot, and I really need to start doing something about it. Thanks fir the post.
Just start saving a little amount that you wouldnt notice leaving your account. £10 a month of £20 a month, over the year it will build up. SO worth doing and using the stocks and shares ISA as an account the returns should be great as well.
Great post! I hope I caught it in time as I need to dive in before the April 5 deadline (to qualify for the cashback). I would love to hear from you or others who have done such an ISA investment. Thanks for sharing. I will get my finger out and get into action.
Thank Joleisa, when I opened mine it was all sorted in 5 minutes. No waiting. So your should be fine. I am exciting to track its progress!