Scared of savings pitfall's.

navyguy75

Hi guys i feel in a fortunate position having some savings to invest (it's rare during my lifespan!) but with the current turmoil in the markets, and all the treads regarding the top savings accounts ie Kaupthung's having doubters, i am asking for your opinions on my situation as some of you seem very aware of the current market.

I am a married serviceman with an eight year old daughter. I have no debts, and at present and 17500 to invest immediately. I also want to start saving around 3-400 a month. All my money is currently sitting in my lloyds account gaining a pitifull rate. I don't mind spreading the money around and am looking for the best (fairly safe) way of using this money to give me the best gains over the next 2 years or so.

I would appreciate, and divulge any advice positive or negative that you could give me. Many Thanks. G:A

Lokolo

Ok if you just want to keep the money for a year or 2 then you should save, not invest. Investing is really a longterm strategy for around 5 years +.

Are you a taxpayer?

Are you married and if so, is your wife a taxpayer?

navyguy75

Hi yes i am a taxpayer, currently sitting at about 37k a year, and i am married, my wife works full time earning approx 18k a year. At present we have a joint account. Many

navyguy75

The main aim is to be in the strongest position, when it's the best time to jump onto the housing market. I know this is a hard one to judge, but at some point i will be buying a house/houses and just want to have as much money as possible to do it with. Many Thanks

isofa

£3600 in a Cash ISA.

Then rest in a instant access savings account. (Or if you want to lock it away for a year or 2, a fixed rate savings account or "bond", only do this if you are sure you won't want access to the money.).

You are protected up to £35K with each financial institution if they go bust (not that they will!), so if you are worried, as soon as you get near 35K open another account somewhere else.

Best accounts listed at Moneyfacts.