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  • FIRST POST
    • winifredwilson
    • By winifredwilson 17th May 17, 1:45 AM
    • 3Posts
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    winifredwilson
    Please help - I have 26k to save/ invest
    • #1
    • 17th May 17, 1:45 AM
    Please help - I have 26k to save/ invest 17th May 17 at 1:45 AM
    Hello,

    I am so confused over savings/ investments/ ISAs etc. I know I need to make my own decisions regarding my money but there is so much information I have delayed doing anything with it for 6 months.

    I am 30. I live in London and can't afford to buy a property here. I will eventually move back to where my family live (up north). I have never owned a home before. It will likely be 1-3 years before I move back.

    I have 26k and I am confused over how to save/ invest this money. I will likely need it to buy somewhere when I move back home (I did think about buying an investment property to rent but have rejected this idea).

    This money is in a current account. I stupidly opened a HTB ISA last year and had to withdraw all the funds. Since then I have not put any money in any type of ISA.

    I was thinking in opening a LISA which will allow 4k to be saved and used towards my first home. I was then hoping to put another 16k into another cash ISA to give me my 20k annual tax free savings. I am struggling to find information on where I can combine two types of ISA as I believe this needs to be with the same bank.

    I am also unsure on what to do with the rest of the money.

    I'd really appreciate any help/ advice/ suggestions people could give me.

    Many thanks!
Page 1
    • enthusiasticsaver
    • By enthusiasticsaver 17th May 17, 9:08 AM
    • 3,638 Posts
    • 6,482 Thanks
    enthusiasticsaver
    • #2
    • 17th May 17, 9:08 AM
    • #2
    • 17th May 17, 9:08 AM
    A Lisa is a good option. Cash isas don't give very good rates and you can now get 1k in interest tax free per annum if you are basic rate taxpayer so in my mind there is no advantage in the cash isa. Check the best savings rates on this site but you will struggle to get a good rate without dividing it and splitting it across various current accounts. We keep our emergency cash in Santander 123 which pays 1.5% and Tesco which pays 3%.
    Debt and mortgage free and saving for early retirement
    • Redski69
    • By Redski69 17th May 17, 9:59 AM
    • 22 Posts
    • 12 Thanks
    Redski69
    • #3
    • 17th May 17, 9:59 AM
    • #3
    • 17th May 17, 9:59 AM
    I'm inclined to agree with enthusiasticsaver here ... I'd go for a LISA and a S&S ISA.

    LISA is a good vehicle, especially because of the Government Top Up (25%)contributions too ... just be sure you don't need the Cash Out of it before Home Purchase else you'll pay penalty charges on each withdrawal as a % of the withdrawal (25%!).

    The bulk residue of your money I'd put into a S&S ISA with a Model Portfolio based on your own appetite for risk, if you're not confident with picking your own asset choices.

    Hope it helps ...
    Last edited by Redski69; 17-05-2017 at 10:02 AM.
    • xylophone
    • By xylophone 17th May 17, 10:47 AM
    • 21,961 Posts
    • 12,662 Thanks
    xylophone
    • #4
    • 17th May 17, 10:47 AM
    • #4
    • 17th May 17, 10:47 AM
    http://www.skipton.co.uk/savings/isas/lifetime-isa

    Should be available next month.

    A S&S ISA with 16,000

    http://monevator.com/low-cost-index-trackers/

    http://monevator.com/compare-uk-cheapest-online-brokers/

    Open a Nationwide Flexclusive current account with 2500 - cycle in/out 1000 a month.

    Open the Flexclusive regular monthly saver and contribute up to the maximum monthly.

    Continue with the LISA in subsequent years.
    • badger09
    • By badger09 17th May 17, 10:57 AM
    • 5,066 Posts
    • 4,263 Thanks
    badger09
    • #5
    • 17th May 17, 10:57 AM
    • #5
    • 17th May 17, 10:57 AM
    A LISA is a good idea for the government bonus.

    However, if you are saving for a deposit on your first home in 1 - 3 year's time, I would not use S&S ISA for the rest. How would you feel if your 16k investment was worth only say 12k when you find the home of your dreams.

    Instead, look at Nationwide Flexdirect current account and Flexclusive regular saver. Then look at other current accounts paying interest and some regular savers. Tesco & TSB current accounts, First Direct regular saver for example.

    http://www.moneysavingexpert.com/savings/which-saving-account
    • xylophone
    • By xylophone 17th May 17, 11:37 AM
    • 21,961 Posts
    • 12,662 Thanks
    xylophone
    • #6
    • 17th May 17, 11:37 AM
    • #6
    • 17th May 17, 11:37 AM
    Yes, I had missed the very short timescale for moving north.

    If you are sure that you will need your cash within five years, the S&S is probably best avoided.

    You could open the LISA and the Nationwide accounts as above.

    For a very simple arrangement, you might open a Santander 123, pay all your household bills from it and hold the balance of the cash there.

    They also offer a regular monthly saver which you could also use.
    • winifredwilson
    • By winifredwilson 17th May 17, 11:34 PM
    • 3 Posts
    • 0 Thanks
    winifredwilson
    • #7
    • 17th May 17, 11:34 PM
    • #7
    • 17th May 17, 11:34 PM
    Thank you all for your help. You have given me some things to think about.
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