Instant access home for 35k needed.

k-hkr

Hi guys. I have to find a home for 35K. This is what is left of my inheritance after a bit of share purchasing. I am a 40% tax payer so thought about putting in wife's name as she is non tax payer (form R85 filled in at bank yesterday). We are looking at moving next spring/summer (marketing ours early spring) so really could do with instant access or at least a low penalty early withdrawal?

I am also thinking of premium bonds (could put them in my name as well) as average payout 1.5% tax free which would = a good pre tax rate with the chance of more return, and the excitement factor I guess. It is only for 1 year so not losing too much interest really. Thoughts please, cheers.

Jonbvn

Why no cash ISA's for you and OH???

After that, open an instant access account in your wife's name.

Premium bonds are rubbish! http://www.moneysavingexpert.com/savings/premium-bonds-calculator/

getmore4less

If the end goal is to be part of a house purchase what about reducing the cuurent mortgage if you have one.

k-hkr

Cheers. We don't have an ISA at the moment. Well, I have an account with TSB but just used it to save last year and withdrew it. Often the rates are crap and with wifey being non taxpayer better off in other accounts. Will take a look though.

Our mortgage is just off deal and is at base rate + 2% = 2.5% but has a 3% collar so am paying same as have for last year really. To pay down the mortgage by 35k means we lose the option to have that 35k back on that deal with our providers. We would then have to take an uncompetetive deal from them or remortgage elsewhere and pay a hefty fee for the same deal we are on now for nothing! Hence decided to keep our mortgage options open by leaving the 65k we have currently on that deal alone. We will then decide, depending on how much, if any, additional borrowing we make when we move, whether we stay with current provider or remortgage.

Wifey has opened a TSB e-saver getting 2.5% and filled in R85 for tax free interest. I know there are 2.8% deals out there and will take a look but we both bank with TSB so for ease of access thought it ok as only £100 down over full 12 months.

Mikeyorks

k-hkr wrote: »

but we both bank with TSB .

Their Classic + Vantage is an easy access (current) account and pays 4% for balances between £5k and £7k. You can have up to 3 accounts .......... but I don't know if any existing current accounts you might have mitigates that number.

But you need to fund £1k monthly to get that rate ... which you achieve by simply moving £1k out of one of the accounts - through the other(s) - and back to the original. Do it online (not SOs) and it takes seconds. Don't keep over £7k in the accounts as any excess earns 0.1%.