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  • FIRST POST
    • mailmannz
    • By mailmannz 30th Mar 17, 4:41 AM
    • 235Posts
    • 110Thanks
    mailmannz
    What's the point??
    • #1
    • 30th Mar 17, 4:41 AM
    What's the point?? 30th Mar 17 at 4:41 AM
    After my house sale and clearing all my debts I'm left with a small sum of money (£30k) that I can do something with over the course of the next 6 to 12 months as I build up a deposit for my next house purchase.

    So I've been looking at ISA's and savings accounts but am just left feeling that's there's not actually much point in p1ssing around because the cards are just so stacked against us mere mortals!!

    There are high interest savings accounts but only for small sums of money (5% interest but only for £2,500) or high interest ISA's but you can only deposit up to £1000 initially then only add to it by £200 a month) or one of those new home buying LISA or what ever but you can only buy a house under £250k if you live outside London!!!!

    But yeah, I know this is all first world kinda of problems but I'm just left feeling the cards are so stacked against savers that there is literally no point and I be better off just taking my chances with premium bonds as the calculator says I'd likely win £400 a year anyway!!!

    Sorry for the rant.

    Regards

    Mailman
Page 1
    • eskbanker
    • By eskbanker 30th Mar 17, 9:05 AM
    • 5,792 Posts
    • 5,675 Thanks
    eskbanker
    • #2
    • 30th Mar 17, 9:05 AM
    • #2
    • 30th Mar 17, 9:05 AM
    high interest ISA's but you can only deposit up to £1000 initially then only add to it by £200 a month) or one of those new home buying LISA or what ever but you can only buy a house under £250k if you live outside London!!!!
    Originally posted by mailmannz
    Sorry to p1ss on your chips further but having just sold a house you're not entitled to a Help to Buy ISA or LISA (for non-retirement use) as these are for first-time buyers only, so those particular options aren't actually open to you at all....
    • Malthusian
    • By Malthusian 30th Mar 17, 9:12 AM
    • 3,286 Posts
    • 4,986 Thanks
    Malthusian
    • #3
    • 30th Mar 17, 9:12 AM
    • #3
    • 30th Mar 17, 9:12 AM
    You have £30k in the bank and anticipate that you will have enough for a house deposit in 6 to 12 months. You don't even need to pick up the cards.

    Did the rant make you feel better? (Genuine question.)
    • Imvrasos
    • By Imvrasos 30th Mar 17, 10:00 AM
    • 21 Posts
    • 22 Thanks
    Imvrasos
    • #4
    • 30th Mar 17, 10:00 AM
    • #4
    • 30th Mar 17, 10:00 AM
    Just fill the high interest current accounts (Santanter/ Nationwide/ RBS) and then feed their regular savers. In your position, I would also consider short term P2P lending for 10-15% of your total sum.
    • Ray Singh-Blue
    • By Ray Singh-Blue 30th Mar 17, 10:20 AM
    • 341 Posts
    • 443 Thanks
    Ray Singh-Blue
    • #5
    • 30th Mar 17, 10:20 AM
    • #5
    • 30th Mar 17, 10:20 AM
    Just stick it in the bank & spend your time finding a good house
    • chockydavid1983
    • By chockydavid1983 30th Mar 17, 10:33 AM
    • 470 Posts
    • 282 Thanks
    chockydavid1983
    • #6
    • 30th Mar 17, 10:33 AM
    • #6
    • 30th Mar 17, 10:33 AM
    You can fit most of your £30k in current accounts and regular savers that pay at least 3%
    • mailmannz
    • By mailmannz 2nd Apr 17, 10:16 PM
    • 235 Posts
    • 110 Thanks
    mailmannz
    • #7
    • 2nd Apr 17, 10:16 PM
    • #7
    • 2nd Apr 17, 10:16 PM
    Sorry to p1ss on your chips further but having just sold a house you're not entitled to a Help to Buy ISA or LISA (for non-retirement use) as these are for first-time buyers only, so those particular options aren't actually open to you at all....
    Originally posted by eskbanker
    That was a part of my rant the cards are stacked against us pretty much all the time. I guess the trick is minimising the number if cards in that stack!

    Regards

    Mailman
    • mailmannz
    • By mailmannz 2nd Apr 17, 10:17 PM
    • 235 Posts
    • 110 Thanks
    mailmannz
    • #8
    • 2nd Apr 17, 10:17 PM
    • #8
    • 2nd Apr 17, 10:17 PM
    You have £30k in the bank and anticipate that you will have enough for a house deposit in 6 to 12 months. You don't even need to pick up the cards.

    Did the rant make you feel better? (Genuine question.)
    Originally posted by Malthusian
    Yes

    I had a look at some new build properties near me and was bitterly disappointed by what was on offer! Ridiculously small houses on even smaller plots if land on narrow streets (so you just know parking is going to eventually be an issue and no change from £320k!! And this isn't even London!

    But yes, felt much better after a good whinge ����

    Regards

    Mailman
    Last edited by mailmannz; 02-04-2017 at 10:20 PM.
    • EdGasket
    • By EdGasket 3rd Apr 17, 8:22 AM
    • 3,456 Posts
    • 1,446 Thanks
    EdGasket
    • #9
    • 3rd Apr 17, 8:22 AM
    • #9
    • 3rd Apr 17, 8:22 AM
    National savings pay 0.75% from May which on a £1000 investment would just about buy a coffee and cake after one year investment! As OP says not worth the bother. S&S is the only way but not if you want to buy a house soon.
    • Anonymous101
    • By Anonymous101 3rd Apr 17, 8:41 AM
    • 1,010 Posts
    • 370 Thanks
    Anonymous101
    Yes

    I had a look at some new build properties near me and was bitterly disappointed by what was on offer! Ridiculously small houses on even smaller plots if land on narrow streets (so you just know parking is going to eventually be an issue and no change from £320k!! And this isn't even London!

    But yes, felt much better after a good whinge ����

    Regards

    Mailman
    Originally posted by mailmannz
    That's new build houses thought isn't it?
    They are definitely not value for money in terms of plot size and floor area.
    • trailingspouse
    • By trailingspouse 3rd Apr 17, 12:09 PM
    • 2,368 Posts
    • 3,373 Thanks
    trailingspouse
    Where are you based?

    Round these parts, £320k would buy quite a lot of house. Our house has just been valued at £285,000 - nice area, 4 bedrooms, 4 floors, double garage, period features...
    • mailmannz
    • By mailmannz 4th Apr 17, 9:55 AM
    • 235 Posts
    • 110 Thanks
    mailmannz
    Im in Cambridgeshire so I guess we are suffering the London commuter belt effect here.

    Regards

    Mailman
    • ruperts
    • By ruperts 4th Apr 17, 3:28 PM
    • 672 Posts
    • 1,107 Thanks
    ruperts
    I'm sure you could probably get 3% on that sum with a bit of fiddling around with different current accounts and regular savers. Might take you a few hours over a couple of weeks to research and set up but with £900 up for grabs it's not totally pointless.
    • Pincher
    • By Pincher 4th Apr 17, 5:42 PM
    • 6,516 Posts
    • 2,491 Thanks
    Pincher
    Interesting timing. Buying a house in 12 months.

    Expecting a crash in 2018, perhaps?

    Remember you need a job to get a mortgage.
    A crash usually comes with redundancies.

    I see these fishing villagers complaining about the lake is drying up, and there are fewer and fewer fish. Same as the first world interest rate, shrinking and disappearing.

    All these people moaning about low interest rates are no different from the Africans moaning about fish.

    Instead of moaning about low interest rate, revel in it.
    Get a bigger house, with a bigger and cheap mortgage.
    Get lodgers, and use up that £7,500 Rent-A-Room allowance.
    • bobobski
    • By bobobski 5th Apr 17, 7:25 AM
    • 654 Posts
    • 1,505 Thanks
    bobobski
    Im in Cambridgeshire so I guess we are suffering the London commuter belt effect here.

    Regards

    Mailman
    Originally posted by mailmannz
    Ah I should have guessed you'd be near me. Yes, it is ridiculous in these parts, but at least you have a headstart. I started from scratch only a year-ish ago and have no one to buy with. And Cambridgeshire is consistently at or very near the top of the tables for lack of affordability by some metric (e.g. average house price vs average salary) and for percentage increase per year. Unfortunately OP there's nowt to do except keep plugging away at it. At least you're only looking at another 6-12 months - I'm planning to buy in 4 years!
    #18: Save 12k in 2017: £10,032.12 / £12,000 (83.6%) | #86: Save £12k in 2016: £8,476.09 / £10,000 (84.76%)
    House deposit by 31/12/2020: £20,221.41 / £60,000 (33.7%) | Emergency fund by 31/12/2020: £1,553.13 / £5,000 (31.0%)
    • teffers
    • By teffers 5th Apr 17, 9:07 AM
    • 671 Posts
    • 585 Thanks
    teffers
    Stick £10K in 'high' (lol 3-5%) interest accounts ( and enjoy the monthly cash transfer merry go around ) and then stick the other £20K in NS&I Bonds just for fun.

    Hopefully Ernie will be kind.
    • Malthusian
    • By Malthusian 5th Apr 17, 11:15 AM
    • 3,286 Posts
    • 4,986 Thanks
    Malthusian
    I used to live in Cambridgeshire and yes, it's expensive. The disadvantage of being in a nice area yet having such a convenient train line to London. I solved that problem by moving back to the old country.

    If I did want to buy a house in Cambridgeshire there are plenty of perfectly nice houses I can see on Rightmove, if you don't mind living in the middle of nowhere, and driving absolutely everywhere. But pretty much everywhere in Cambridgeshire is the middle of nowhere, apart from Cambridge, so that's a given. When I was a teenager in Cambridgeshire pretty much everyone I knew lived in a village, and when you went to a party, everyone drove and spent the night on the floor.

    If you want city-centre lifestyle in Cambridgeshire then you want to live in the middle of Cambridge and I don't know how you can expect anything other than a shoebox.

    I live in a small house on a small plot with tricky on-street parking from which I got no change from £320,000. I love it. I wanted to live in a pleasant and fashionable area 10 minutes walk from the city centre so I paid my money and made my choice.
    • mailmannz
    • By mailmannz 20th Apr 17, 4:59 PM
    • 235 Posts
    • 110 Thanks
    mailmannz
    So after some faffing about Ive come up with the following table

    Santander 123 £20,000
    1.5% interest £300
    Cash back £67
    Fees £60
    TOTAL: £307 a year
    £500 a month pay in
    2 active direct debits

    Nationwide £2,500
    5% interest £125
    £1,000 a month pay in
    No requirement for direct debits to be paid

    Bank of Scotland £5,000
    2% interest £100
    £1,000 a month pay in
    3 active direct debits

    Tesco £3000
    3% interest £90
    £750 a month pay in
    3 active direct debits

    TOTAL Deposits: £30,500
    TOTAL Interest: £615 (which is effectively 2% interest over the year).

    All of that involves a lot of fiddling and moving money around to meet all the different deposit and direct debit requirements, which I guess is just the time it takes to set the money train up!

    Regards

    Mailman
    • MallyGirl
    • By MallyGirl 20th Apr 17, 5:08 PM
    • 2,016 Posts
    • 6,830 Thanks
    MallyGirl
    you could make more using some regular savers e.g. first direct 6% (may be 5% now). I also have M&S 5% (plus £10 back on gift card) and Nationwide 5%
    • RG2015
    • By RG2015 20th Apr 17, 5:36 PM
    • 480 Posts
    • 218 Thanks
    RG2015
    See the website on the link below which does the calculations for you and also allows you to limit the number of accounts. If you can also open joint accounts you can earn £1,031 on £30k with 11 accounts.

    I am also in Cambridgeshire but in a village with buses that stop at 6:00 pm and with two kids I have been a taxi service for far too many years!

    https://www.bankaccountsavings.co.uk/
    Last edited by RG2015; 20-04-2017 at 5:39 PM.
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