Desperately need some savings advice

evi3000

Hello!

I'm hoping you can help me out. I have a few savings queries. I've been looking through Martin's advice but was hoping for some more.

This is my problem (well, not so much a problem as a lucky situation!)

1. I will be receiving £30000 :jfrom the sale of our house in France. We have nothing else to pay our for the sale so it's all mine!!! I should get it in late November - I want risk free. I can tie it in for 2 years.

2. I will also be able to save approx £3000, maybe £3200 a month for 2 years (we are moving to the Middle East and will send money back on a reguar basis).

I am not allowed to open any ISAs whilst we are non resident. I assume I won't be paying tax on the Interest (I need to fill in an IR form - can't remember the number right now!)

Any advice / help? I so want to get this right because I plan on paying off the mortgage at the end of the 2 years. I've looked at offshore savings accounts but, frankly, the savings rates are pants and I can get more in the UK (assuming I won't pay tax on interest).

Please help!

Thanks,
evi3000

Lokolo_2

To start off with, I'll say that I'm not experienced with offshore banking/saving so I don't have a clue if you are able to open savings if you're a non-resident!

Provided you can, the Bank of Baroda provides a 2yr Bond paying 3.8%, you could lock your £30k into this to get a guaranteed safe return at a reasonable rate.

The monthly savings is a bit more tricky as regular saving accounts don't take more than £250-£500 a month, so you might be best off putting the monthly contributions into an instant access savings account such as The AA .

This account pays 2.8% which is a decent rate at the moment considering you can access your money at any time and add more, whereas with a bond, you generally can't add to the initial investment!

I wish you the best of luck and hope my advice helps somewhat :j