Dn't know what to do with 12k windfall !

PensionKid

Hi everyone, my girlfriend has just been made redundant and wants to know (after maxing out her cash isa) what to do with the remaining monies. I have my own ideas but i think she would appreciate some of yours.

Thanks,

PensionKid

The_Enforcer

1. Alliance and Leicester Premier Direct Current Account - 6% interest on £2,500 for a year. Easy access. Must pay in £500 each month, put can then withdraw that amount. Use cashback site to open account.

2. Norwich and Peterborough Regular Saver - 5% on deposits of up to £250 each month for 12 months. 3.5% if you make more than one withdrawal over that period or fail to pay in every month. Check if cashback sites have it listed.

Aegis

The_Enforcer wrote: »

1. Alliance and Leicester Premier Direct Current Account - 6% interest on £2,500 for a year. Easy access. Must pay in £500 each month, put can then withdraw that amount. Use cashback site to open account.

2. Norwich and Peterborough Regular Saver - 5% on deposits of up to £250 each month for 12 months. 3.5% if you make more than one withdrawal over that period or fail to pay in every month. Check if cashback sites have it listed.

To be honest it would probably be easier to just stick the majority into a fixed rate account that allows withdrawals with an interest penalty. I was looking for fixed term accounts for a client earlier today and saw one at 5.35% AER (not sure if it allows withdrawals, but there are definitely some at the 5% level which do), so the regular saver doesn't really offer anything worthwhile at all, and the A&L account probably wouldn't be worth it for the extra hassle and the fact that if you forget to fund the account they charge you for it...

Just need to find an account that allows withdrawals with either notice or loss of interest.

Of course, that would be assuming a long-term cash position, which might not be for the best.

OP: what does she want to do with the money? Is she going to be going straight back to employment? Does she want to spend it on something in the next couple of years? Does she want to plan for her retirement, or does she just want to grow it as much as possible in the medium to long term.

Without a clear idea of what she's looking to do, there's far too much out there to talk about.

McKneff

I will pm you my bank details lol

McKneff

If she has any debts whatsoever, pay them off. Interest on debts is far higher than interest on savings.

Aegis

McKneff wrote: »

If she has any debts whatsoever, pay them off. Interest on debts is far higher than interest on savings.

Almost certainly, with only a few exceptions. I've obviously started spending far too long with clients who can't remember having debts!