Financial Advisor Farnborough             Blog

PLAN YOUR FUTURE TODAY FOR A BETTER TOMORROW

MONEY WAYS UK  KEEPS THINGS SIMPLE
NO JARGON,  NO FALSE PROMISES
JUST SIMPLE, PLAIN SPEAKING, QUALITY ADVICE AND GREAT SERVICE

NO OBLIGATION AND FREE INITIAL INTERVIEW

Location: 19, Camp Road, North Camp, Farnborough GU14 6EN

About Us

I established Money Ways UK in 2000, as a small firm of Independent Financial Advisors with the focus on providing the best advice to corporate and individual clients. Providing tailored advice in clear and concise language to ensure all aspects are properly covered and fully understood.

Our location allows us to conveniently serve North Camp, Farnborough, Cove, Aldershot, Ash, Wanborough, Fleet, Hartley Witney, Camberley, Farnham and other Surrey and Hampshire areas. Clients are invited to our offices or we offer home visits for additional flexibility.

We offer an initial meeting which is free and without any obligation.

Just give me a call on 01252-516517 to arrange an appointment, I can visit you in your home and help discuss your options.

Making Your Money Work Harder

Just like you need petrol to run a car, money provides you with the means to live your life. Big purchases, holidays,  a wedding, emergency reserves to dip into if out of work or made redundant, tucking away some spare cash aside regularly makes good money sense. 

Picture this, you've just landed a cash bonus or been left a sum of money in a will, what saving vehicle will you choose? There's quite a selection, each offering different terms and incentives. 

Shopping Around to Save

The first question you should ask yourself is; how quickly do you need access to the money? Would you be prepared to forgo instant access for a higher rate of interest?

Talking to an independent financial adviser will help you:

  • decide which saving facilities and features are relevant to you;
  • pinpoint what you are saving for and how much you'll need to set aside to reach that goal;
  • compare the cost of any debts you have accumulated against the interest you are likely earn in savings
  • source the most tax efficient savings account.

To discover new ways in which you can make your money work more effectively, contact us today.

Bank & Building Society Accounts: 
The first step towards a safer financial future

The usual place for squirreling away some cash for emergencies, or to fund future activities, is with high street or online banks and building societies. There's plenty of choice, and unlike other investment decisions, these are generally low risk saving channels.

Warning: Doing nothing could seriously affect your wealth

By doing nothing with your spare money, inflation will gradually erode the value of it.  All the time your money is earning no interest, the cost of goods rise. But with the value of your money remaining the same, you will be able to buy less. Savings earning interest can help to offset the effect of inflation.   

Questions worth asking yourself before making any savings decision include:

  1. What interest rates are offered to accounts in credit?
  2. Are there any account charges, and for what?
  3. Can you manage the account online?
  4. Is there a minimum opening balance?
  5. What introductory offers are there?
  6. Do they offer preferential rates on other financial products to account holders?

But when it comes to saving, choice prevails. Each account type has plus points and pitfalls, depending on the amount you are saving and how quickly you need access to your cash:

Instant Access Savings Accounts

What's good? Gives immediate access to your money. 
No need to give notice or incur any penalties.
What's not? Interest paid tends to be low.

Notice Accounts

What's good? Enables you to withdraw your money provided the required notice is given, which can range from 30 days to four months.  
Better interest rates than instant access savings accounts.
What's not? Although flexible, in that they'll usually let you withdraw your money instantly, penalties are usually charged. You also usually need a significant sum in order to open one.

Regular Saver Accounts

What's good? Disciplines you to save a certain amount of money every month, usually from £10 upwards. 
Decent interest rates. 
Flexibility to vary the amount saved.
What's not? Access restrictions. 
May charge penalties for frequent withdrawals and often limit the number allowed each year.

Term Accounts

What's good? Money is saved for a specific period of time, ranging from one to five years.  
Higher interest rates, often compounded.*
What's not? During the term, withdrawals are restricted. 
If withdrawals are permitted, the penalties can be high.

If you are serious about building up a cash reserve, some good advice now could be worth more in the long-term. Contact us today to discover if your savings vehicle is looking after your best interests.

Cash ISA: The tax efficient savings account

ISA stands for Individual Savings Account. If you're a taxpayer and looking for a savings product that won't charge you tax on any interest accumulated each year, Cash ISAs work well. In comparison, most ordinary bank and building societies savings accounts will require you to pay tax on interest earned. 

How do they work?

Cash ISAs are pretty straightforward, and no different to regular savings, instant access or notice accounts. They are simply a tax-efficient wrapper for cash deposits, enabling you to save without paying tax on the growth of your savings. Available from most banks, building societies and investment companies, the benefits to taxpayers include:

  • igher interest rates.
  • No tax deducted on interest paid
  • Quick access for short-term savers without losing the tax relief.
  • Much lower risks than other investment channels

Are there any limits?

You must be aged 16 or over to open a Cash ISA. It is important to note that only £5,335 can be saved in any one tax year. The tax year runs from 6th April to 5th of April, every year. So if, for instance, you deposit £5,335 into your Cash ISA at the beginning of the tax year, but decide three months later to withdraw £1,500, you can't put any more money into the Cash ISA until the following tax year.

Things to remember:

  1. No notice, penalty free Cash ISAs may not offer the highest interest rates.
  2. Some high rates only apply to savers who deposit the full £5,335 and don't touch their savings until the ISA has matured.
  3. If you decide that you would like to invest in stocks and shares as well as cash deposits, you can open a stocks & shares ISA, which allows you to invest up to £10,670, less the amount invested in cash, in any one tax year.
  4. Once you've set up an ISA, it is possible to move it. But make sure you follow set procedures or you could lose the tax benefits.

Are Cash ISAs suitable for everyone?

Non-taxpayers, particularly young people and children may find traditional savings accounts offer them better interest rates. You'll need to register for gross interest by filling in an R85 form, available from your saving provider or tax office. 

To discover more about ISAs or to talk over other tax-efficient savings options if your ISA limit has been reached, contact us today.

Compound Interest Explained

Regular long-term saving brings a bonus called compound interest. In other words, your interest earns its own interest. 

Just imagine you saved £100 per month for 15 years. Without interest, this would give you an £18,000 pot of cash. But with interest compounded monthly at the rate of 6%, in 15 years, that would be worth £29,082.

Time passed

0% interest (£)

4% interest (£)

6% interest (£)

8% interest (£)

5 years

6000

6,623

6,977

7,355

10 years

12,000

14,694

16,388

18,335

15 years

18,000

24,529

29,082

34,727

20 years

24,000

36,513

46,204

59,196

25 years

30,000

51,117

69,299

95,723

30 years

36,000

68,912

100,452

150,252

Total interest after 30 yrs

0

31,912

64,452

114,252

Approximate value of regular savings of £100 per month over time with compound interest.

AER Explained

AER stands for Annual Equivalent Rate and is used by savers to compare the interest you can expect to earn on different savings account funds. The percentage of interest is rolled up and paid at the end of each year. AERs must be published on all advertisements. Note, the quoted rates and AER can vary.

WHAT MY CLIENTS ​​​​​HAVE TO SAY

Amanda

"A very professional and personal service. Mike was reassuring and knowledgeable when it came to advice on our finances and found the best solution that suited us. We'll certainly be recommending him to our friends!!"

Alfie

 "I went to Mike Daniels on a recommendation of a close friend. My situation is very complicated and distressing. Mike was amazing with not only his kind and caring nature but in his experience and willingness to try and resolve the issues at hand. He is full of ideas and solutions, very professional, knowledgeable and trustworthy. I will definitely continue to seek his advice and recommend his services with confidence."

Rachel

"Would highly recommend Michael to anyone! He is very efficient & keeps you up to date with what is going on. Smooth process from start to finish. Thank you!"

Richard

"I went in to Money Ways to enquire about my pension options on the off chance. Mike greeted me with an air of confidence and welcoming and began to clearly explain pension types, risk levels and the choice of the whole market! It was the first time that I could say I understood the pension system, most surprising was the consultation was for free and yet I did not feel pressured to commit or hurried to move on. Very relaxed friendly approach to finance, I will never ask at my bank branch for financial advice again!!"

Daniel

"Fantastic service. I've returned to Mike for all my financial professional services requirements. He's extremely prompt, really jovial and offers an excellent advisory service as well. You can call him anytime for advice and if you take up his services you'll get a fantastic service from him."

Abi

"We went to Mike for advice on Equity Release and knew from his wealth of knowledge and experience that we were in safe hands. He delivered a great service and sorted us out with everything we needed. The whole process was made much more comfortable and reassuring with Mike involved."

Neil

"Would like to thank Michael for all his help with our equity release, he has been very efficient, professional and knowledgeable. He is reliable and kept in touch every step of the way."

Christopher

"Gave me some quick invaluable advice over the phone. Much appreciated. He is on my list of go to advisors."

Stuart

"Michael offers a very professional service and provided a very detailed analysis for my requirements,. I cannot recommend Money Ways highly enough

Yvonne

"Highly recommended Following a recommendation I went to Mike for advice on a re-mortgage (which wasn’t a straight forward case). However I found Mike to be very professional and knowledgeable; within a week we had made an application and had it accepted. I then returned to Mike for Pension advice, again he knew his stuff and got me a great deal and dealt with all the paperwork. During both processes Mike kept me updated. I will use Mike again without hesitation if I need any further financial advice. Thank you."

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