£50k to save for 6 months

CrazyHorseB · 14 November 2012 at 1:22PM

I'm switching mortgage deals to the Tesco 2yr fixed at 1.99% and will be borrowing an additional £50k as part of the remortgage for a house extension we intend doing next year. Where/how should I invest it for 6 months?

Most of my ISA allowance is full (I could squeeze a few thousand in).

I obvously need fairly instant access and no bonus deals because I'll want it in 6 months.

I don't mind splitting it up a bit e.g. I could spread £15k into 3 Lloyds Vantage accounts at 3% + a Santader 123.

The best other savings accounts seem to be 2.4-2.5% (which is more than the 1.99% I'm paying on the mortgage anyway). Is there anything i'm not thinking of?

badger09 · 14 November 2012 at 1:36PM

CrazyHorseB wrote: »

I'm switching mortgage deals to the Tesco 2yr fixed at 1.99% and will be borrowing an additional £50k as part of the remortgage for a house extension we intend doing next year. Where/how should I invest it for 6 months?

Most of my ISA allowance is full (I could squeeze a few thousand in).

I obvously need fairly instant access and no bonus deals because I'll want it in 6 months.

I don't mind splitting it up a bit e.g. I could spread £15k into 3 Lloyds Vantage accounts at 3% + a Santader 123.

The best other savings accounts seem to be 2.4-2.5% (which is more than the 1.99% I'm paying on the mortgage anyway). Is there anything i'm not thinking of?

6 months is too short to invest. In addition to Lloyds & Santander as above, you could open the best instant access account you can find and drip feed into several Regular Savers -see the link at the top of the page. There's also the Halifax Reward current account ( I think that's the right name) which pays £5 a month for cycling £1000 through it.

Yes - you're missing the fact that the 2.4 - 2.5% is before tax - unless you're a non taxpayer of course

CrazyHorseB · 14 November 2012 at 1:49PM

My wife doesn't work (... sorry works really hard looking after house and ankle biters, but doesn't get paid!). So interest isn't a problem.

I also worded it badly - I didn't really mean "invest", more "put somewhere".

badger09 · 14 November 2012 at 4:50PM

CrazyHorseB wrote: »

My wife doesn't work (... sorry works really hard looking after house and ankle biters, but doesn't get paid!). So interest isn't a problem.

Phew, well recovered there

In that case, it makes sense to put the taxable savings accounts in her name (as long as you trust her not to run off with it :wave:) and register for gross interest.

CrazyHorseB wrote: »

I also worded it badly - I didn't really mean "invest", more "put somewhere".

I wasn't being picky and thought you knew the difference, but many posters don't and it doesn't hurt to reinforce the message.

Good luck

psychic_teabag · 14 November 2012 at 5:43PM

Has your wife used her ISA allowance ? Even though she doesn't pay tax, you could still put £5k in her name into, say, a Coventry 60-day-notice ISA @ 3.25%

Need to be a bit careful with reg savers : often they don't allow access before they mature, which doesn't really fit your 6-month access requirement.

calypso_rhapsody · 14 November 2012 at 6:06PM

Don't dismiss bonus accounts because of your 6 month horizon - many will pay the bonus provided you keep the account open with the minimum balance for the 12 months.

£50k to save for 6 months

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