House Deposit - Where to invest??

chriswilks303

Hi,

I am saving to buy my first house with my girlfriend and we've saved our 10% deposit - Approx £15k.

We're having a problem finding a good place to save the cash.

Can anyone recommend the best way/place to the invest the money for the next 4-5 months??

Thanks

ReportInvestor

Tax free mini Cash ISAs for both of you = 2x£3K each. Kent Reliance BS @ 4.96% looks good.

£9K in Birmingham Midshires Internet Easy Access 6 @ 4.9% including 6 a bonus over the first six months.

You might want to try ICICI Bank @ 5.15%, or then again you might not.

chriswilks303

Thanks for that but surley if we we're to invest in an ISA and pull the money out in a few months we wouldn't be able to put any further cash into it until April 07 and our interest wouldn't be paid until that date as well.

I'm not sure that an ISA is the way to go

Debt_Free_Chick

chriswilks303 wrote:

Thanks for that but surley if we we're to invest in an ISA and pull the money out in a few months we wouldn't be able to put any further cash into it until April 07 and our interest wouldn't be paid until that date as well.

You should get the interest you earn paid into the account on the date you close it i.e. you wouldn't lose the interest.

It's true that you would lose your ISA allowance for this year, but you need to weigh up whether that's a price worth paying.

That said, you couldn't invest £15k using this year's ISA allowance.

Interest rates are low at the moment - and have been for 3 or 4 years - so your best bet is probably ICICI, at least in terms of the best interest rate available.

If you've not used your ISA allowance, consider doing so. 90 days interest gross is still worth more than 90 days interest net!!

Anon

Coventry Building Society is offering 5.10% for a mixed savings/current account - interest paid monthly. Details on another thread near top of this board. Personally, I would use Cash ISA allowance first (£3 k each) then remainder in this or BM (some discussion elsewhere on the merits of ICI). Downside is you need to pay in £1000 per month to get the rate, otherwise it is a pitiful 0.95% pa or something similar.

Anon

MiserlyMartin

Use your ISA allowances. Don't let Gordon Brown take any more of your money. I should imagine that if its 4-5 months before you actually put an offer in for a house, assuming it all goes well it could be another 3 months easily until you've actually got the keys to the house. That will not be too much further away from the next ISA allowance year.

Besides, after you've paid all that stamp duty, legal fees and moving costs will you really have any spare cash about to put in an ISA anyway?