Best saving account for 80k - HELP

poppyl_2

I am so confused by all the different accounts offered by banks and would love some advice please.
Situation is I have to pay my ex husband off for his share of our former matriomonial home. I really want to do this asap rather than when son finishes education (8 years time). At the moment it stands at approx 220k but is dependent on valuation at trigger point ie remarriage, son reaching 18 or selling.
My new partner and I currently each have 30k in premium bonds which we will leave there and want to put our savings approximately 80k into a high interest (no risk account). Now I am a non tax payer but he isnt. We are happy to have the money tied up for a few years. We also both have ISA's but probably not good ones.


Thank you for reading

bendix

poppyl wrote: »

I am so confused by all the different accounts offered by banks and would love some advice please.
Situation is I have to pay my ex husband off for his share of our former matriomonial home. I really want to do this asap rather than when son finishes education (8 years time). At the moment it stands at approx 220k but is dependent on valuation at trigger point ie remarriage, son reaching 18 or selling.
My new partner and I currently each have 30k in premium bonds which we will leave there and want to put our savings approximately 80k into a high interest (no risk account). Now I am a non tax payer but he isnt. We are happy to have the money tied up for a few years. We also both have ISA's but probably not good ones.


Thank you for reading

Forget it. There is no such thing as a high interest no risk account.

xrjtg

Can you pay off part of the money now, and the rest at some later date? There's every chance that the value of what you owe could increase faster than the money you're holding in readiness, particularly if you have your heart set on Premium Bonds.

If you have enough personal allowance left and will do so until you need the money then just look for the highest paying savings accounts you can find: there's an article about them on the main site. Remember to deposit the money in your name, and complete an R85 form so that you receive interest gross.

Cautious_Investor_3

bendix wrote: »

Forget it. There is no such thing as a high interest no risk account.

Everything is relative!

Cautious_Investor_3

Hi

A few thoughts:

1. Premium bonds, whilst the thought of a big win is attractive this hardly ever happens, the actual rate of return is approximately 1.5% per annum, no where near inflation and therefore losing money in real terms. i am really not a fan and never hold premium bonds

2. As you are not a tax payer I'd put the £80k in your name and make sure you complete the R85 form to have interest paid gross

3. I'd split the money between a couple of accounts (for FSCS reasons, although I realise the limit is rising)

4. The longer you tie your money up for the better the rate of interest but then again you don't necessarily want to be marooned on a five year fixed rate, with no chance to change it, if interest rates rise in the future.

There are a number of places you can get information on the best savings accounts:

http://www.!!!!!!.uk/free-services/best-buy-savings-accounts/

http://moneyfacts.co.uk/compare/savings/accounts/best-sellers-savings/

You can also follow this link and they will produce a report for you into your savings options:

http://www.!!!!!!.uk/free-services/cash-management/

I hope this helps.

The Cautious Investor

Reaper

Cautious_Investor wrote: »

1. Premium bonds, whilst the thought of a big win is attractive this hardly ever happens, the actual rate of return is approximately 1.5% per annum, no where near inflation and therefore losing money in real terms. i am really not a fan and never hold premium bonds

I am not either. They make an inkling of sense for a higher rate taxpyer (because they pay out tax free) but no sense for a non-taxpayer. Here is a calculator which can tell you what you can expect to win for your money so you can compare it to a savings account:
http://www.moneysavingexpert.com/savings/premium-bonds-calculator/

As Cautious Investor also says it is better to have any savings accounts in your name not joint names because then you can have all the interest paid to you without tax deductions (be sure to tell the bank you want to do this, there will be an extra form to fill in).

poppyl_2

Thank you all for your comments. Cautious Investor I will definitely have a look at the links that you sent through. XRJTG - unfortunately I have to pay it all to the ex in one go and yes you are right that the cost could go up. Thank you

getmore4less

poppyl wrote: »

I am so confused by all the different accounts offered by banks and would love some advice please.
Situation is I have to pay my ex husband off for his share of our former matriomonial home. I really want to do this asap rather than when son finishes education (8 years time). At the moment it stands at approx 220k but is dependent on valuation at trigger point ie remarriage, son reaching 18 or selling.
My new partner and I currently each have 30k in premium bonds which we will leave there and want to put our savings approximately 80k into a high interest (no risk account). Now I am a non tax payer but he isnt. We are happy to have the money tied up for a few years. We also both have ISA's but probably not good ones.


Thank you for reading

How much do you need to pay him? is it the full £110k?

The real question seems to be do you realy want to stay in this house for a long time.

If not then selling now/soon might be the best option and move somewhere that you really do want to live, that way he picks up 1/2 the costs and you are paying out at a real value not an estimate.

if you do want to stay then 8 years is a good length of time for price to move either way, and you could runs thplace down delay any fixing up till after the payout, since you will be paying full costs to maintain value.

A bit of neglect and clustter, don't mow the grass should drop the sale value enough to reduce the payout and still leave enough to get all the jobs that need doing done.