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  • FIRST POST
    • BrookesAndrew
    • By BrookesAndrew 20th Apr 17, 8:51 AM
    • 311Posts
    • 110Thanks
    BrookesAndrew
    21 with £13000, what should I do with it?
    • #1
    • 20th Apr 17, 8:51 AM
    21 with £13000, what should I do with it? 20th Apr 17 at 8:51 AM
    Hi everybody,

    I have been saving like mad these past few years and taking full advantage of the bonuses I have been getting. I have managed to save up just over 13k. I am wondering what should I do with it? At the moment its just in my Santander savings account earning me 0.1 percent of interest. I know something needs to be done with this money. I do want to get a house when I am older but at the moment my basic is only 20k and I donít think I am going to be able to get a house just yet? Any help on what I should do with this money would be great, thank you.

    Andrew
Page 1
    • le loup
    • By le loup 20th Apr 17, 8:55 AM
    • 3,515 Posts
    • 3,303 Thanks
    le loup
    • #2
    • 20th Apr 17, 8:55 AM
    • #2
    • 20th Apr 17, 8:55 AM
    What have you thought about and researched so far?
    • Stevie Palimo
    • By Stevie Palimo 20th Apr 17, 8:55 AM
    • 3,100 Posts
    • 4,415 Thanks
    Stevie Palimo
    • #3
    • 20th Apr 17, 8:55 AM
    • #3
    • 20th Apr 17, 8:55 AM
    It depends on the area where you live and the value of houses within it, If you want to buy in say 2 years or maybe 10 years.

    Lets say you have a plan to buy within 3-4 years then a first time buyer ISA may suit you here and also place some other money into the TSB accounts or NSI accounts.
    • enjoyyourshoes
    • By enjoyyourshoes 20th Apr 17, 8:57 AM
    • 707 Posts
    • 895 Thanks
    enjoyyourshoes
    • #4
    • 20th Apr 17, 8:57 AM
    • #4
    • 20th Apr 17, 8:57 AM
    Help to buy or lifetime isa?

    S&S ISA?

    Pension top ups (SIPP)?

    Regular savers some still offer 4-6%, set a number running at staggered intervals and keep renewing them?
    Debt is a symptom, solve the problem.
    • stoozie1
    • By stoozie1 20th Apr 17, 9:08 AM
    • 196 Posts
    • 85 Thanks
    stoozie1
    • #5
    • 20th Apr 17, 9:08 AM
    • #5
    • 20th Apr 17, 9:08 AM
    Regular savers some still offer 4-6%, set a number running at staggered intervals and keep renewing them?
    Originally posted by enjoyyourshoes
    I thought all the previously 6% regular savers had reduced to 5%?
    • BrookesAndrew
    • By BrookesAndrew 20th Apr 17, 10:15 AM
    • 311 Posts
    • 110 Thanks
    BrookesAndrew
    • #6
    • 20th Apr 17, 10:15 AM
    • #6
    • 20th Apr 17, 10:15 AM
    What have you thought about and researched so far?
    Originally posted by le loup
    I did look into stocks and shares and opened a Lloyds shares account but I got a bit scared and decided to close it down. I have no idea what to invest in and I would probably be reduced to tears if I lost my money!

    I live in Bournemouth so house prices are quite expensive round here. You can maybe get a flat for around £120,000 and houses are £200,000+. I just didn't think I would even be able to get a mortgage on just earning £20,000 a year. A few people have told me that it comes down to what you are earning and the deposit doesn't really help you when it comes to how much you can borrow, only affects the rate of which you'll be able to borrow the money?

    Good shout about the Help to buy and Lifetime ISA's, I will look into them now.
    • xylophone
    • By xylophone 20th Apr 17, 10:19 AM
    • 21,604 Posts
    • 12,421 Thanks
    xylophone
    • #7
    • 20th Apr 17, 10:19 AM
    • #7
    • 20th Apr 17, 10:19 AM
    Open a Flexdirect with Nationwide - open Flexclusive monthly saver?
    • amateur house
    • By amateur house 20th Apr 17, 10:30 AM
    • 189 Posts
    • 166 Thanks
    amateur house
    • #8
    • 20th Apr 17, 10:30 AM
    • #8
    • 20th Apr 17, 10:30 AM
    I just didn't think I would even be able to get a mortgage on just earning £20,000 a year.
    Originally posted by BrookesAndrew
    I got one and I earn £17k a year, so I think you should be able to get one earning £20k.
    • ViolaLass
    • By ViolaLass 20th Apr 17, 10:32 AM
    • 4,946 Posts
    • 6,803 Thanks
    ViolaLass
    • #9
    • 20th Apr 17, 10:32 AM
    • #9
    • 20th Apr 17, 10:32 AM
    Of course you could get a mortgage on £20k, the question is of how much.
    • bertiewhite
    • By bertiewhite 20th Apr 17, 10:38 AM
    • 378 Posts
    • 352 Thanks
    bertiewhite
    If you can get on the property ladder, it doesn't need to be anywhere fancy or big - I'd think anywhere is likely to be a good investment long term.
    • macman
    • By macman 20th Apr 17, 10:42 AM
    • 40,880 Posts
    • 16,686 Thanks
    macman
    0.1%?! While you are thinking about long term investment, move that £13K into a Santander 123 account, which will pay you 1.5% up to £20K. That's 1500 percent more interest than you are currently getting.
    To save £13K by the age of 21 is a great achievement, but to leave it languishing on a rate where it is actually shrinking (with inflation) is just plain daft.
    As suggested above, a LISA or Help To Buy ISA is really a no-brainer-what other investment is going to give you a 25% bonus each year? But unfortunately you're now too late for the 16/17 allowance.
    With £13K available, you could in fact invest in both the above ISA's and a SIPP as well for 17/18. (£4K, £2.4K and £2.8K respectively). Total £9.2K. Then put £2.5K into a Nationwide Flex Account (5%).
    http://www.moneysavingexpert.com/savings/lifetime-ISAs
    Last edited by macman; 20-04-2017 at 10:51 AM.
    No free lunch, and no free laptop
    • nb0825
    • By nb0825 20th Apr 17, 10:56 AM
    • 108 Posts
    • 30 Thanks
    nb0825
    Open a LISA, stick £4k a year in there until you're ready to buy
    • elephantrosie
    • By elephantrosie 20th Apr 17, 3:58 PM
    • 312 Posts
    • 74 Thanks
    elephantrosie
    21 with 13k. you are very finance-wise!
    at 21, i hardly had 1.3k in savings.
    • Sean473
    • By Sean473 20th Apr 17, 5:47 PM
    • 62 Posts
    • 27 Thanks
    Sean473
    21 with 13k. you are very finance-wise!
    at 21, i hardly had 1.3k in savings.
    Originally posted by elephantrosie
    Haha, I had like 1k which was -£500 by the time I started my job a year later...

    OP is in a really good position. I suggest opening a Nationwide flexdirect account and putting 2.5K into it + getting the regular saver. Also might be worth opening a Santander 123 lite account + regular esaver for the reset of the money!
    • Eco Miser
    • By Eco Miser 20th Apr 17, 8:38 PM
    • 2,835 Posts
    • 2,626 Thanks
    Eco Miser
    As suggested above, a LISA or Help To Buy ISA is really a no-brainer-what other investment is going to give you a 25% bonus each year? But unfortunately you're now too late for the 16/17 allowance.
    With £13K available, you could in fact invest in both the above ISA's and a SIPP as well for 17/18. (£4K, £2.4K and £2.8K respectively). Total £9.2K.
    http://www.moneysavingexpert.com/savings/lifetime-ISAs
    Originally posted by macman
    Having both a LISA and HTB ISA is probably not a good idea, since you can only use one of them to buy a house. The LISA is the better choice.
    Eco Miser
    Saving money for well over half a century
    • elephantrosie
    • By elephantrosie 21st Apr 17, 2:16 AM
    • 312 Posts
    • 74 Thanks
    elephantrosie
    Haha, I had like 1k which was -£500 by the time I started my job a year later...

    OP is in a really good position. I suggest opening a Nationwide flexdirect account and putting 2.5K into it + getting the regular saver. Also might be worth opening a Santander 123 lite account + regular esaver for the reset of the money!
    Originally posted by Sean473
    exactly. maybe OP can teach us how he saved 13k by the age of 21? im keen to learn.
    • elephantrosie
    • By elephantrosie 21st Apr 17, 2:20 AM
    • 312 Posts
    • 74 Thanks
    elephantrosie
    Open a LISA, stick £4k a year in there until you're ready to buy
    Originally posted by nb0825
    not only that. wait for one year before lisa matures.
    • bobobski
    • By bobobski 21st Apr 17, 8:05 AM
    • 640 Posts
    • 1,452 Thanks
    bobobski
    Having both a LISA and HTB ISA is probably not a good idea, since you can only use one of them to buy a house. The LISA is the better choice.
    Originally posted by Eco Miser
    I understand the point, but I'm planning to keep my HTB ISA running after I've opened the LISA as it's still at 3.5% and I've maxed out everywhere above that, and am a higher rate taxpayer on the brink of earning £500 interest per year. So although in general I agree, there are times when I don't think your comment applies.
    #18: Save 12k in 2017: £4,968.86 / £12,000 (41.4%) | #86: Save £12k in 2016: £8,476.09 / £10,000 (84.76%)
    House deposit by 31/12/2020: £15,722.77 / £60,000 (26.2%) | Emergency fund by 31/12/2020: £988.51 / £5,000 (19.77%)
    • BrookesAndrew
    • By BrookesAndrew 21st Apr 17, 11:24 AM
    • 311 Posts
    • 110 Thanks
    BrookesAndrew
    Thank you all for the responses. I have looked into the LISA and will definitely go for that but it seems nobody is offering it until June 2017? 123 account is something I am going to look into as well and the Nationwide account.
    • BrookesAndrew
    • By BrookesAndrew 21st Apr 17, 11:26 AM
    • 311 Posts
    • 110 Thanks
    BrookesAndrew
    exactly. maybe OP can teach us how he saved 13k by the age of 21? im keen to learn.
    Originally posted by elephantrosie
    Working from 16 years old, living at home and putting away at least half of my money every month, sometimes even more with bonuses! I must say though that even with this money it can be quite a strain saving money when you are seeing all your mates going out all the time and going on nice holidays! Be worth it in the end I am sure!
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