Saving £1,400pm - what's the smart thing to do with this?

grunder

I'm in a lucky position where I've managed to clear all my debts and can save £1,400 per month which I want to use towards a desposit for a house in around two years.

The thing is I don't want this money to be sat around in an account earning 2% interest and think there must be some way to make this work better for me. I'd be interested in suggestions how I could get this money working for me be it saving / investment. I've looked around for various options but noting really jumped out at me yet.

I wouldn't really want to lock it away for anything longer than two years.

Thanks

black_taxi_2

two years is to risky for stock market---go for a two year fixed saving or isa rate

Nikel

You could try some fixed rate regular savings accounts, pay into them each month. You get a better rate of interest but you would have to split up your £1400 accross a few as they tend to be restricted in terms of max monthly deposit.

grunder

Thanks for the advice and it seems to reflect what I've been reading. If I could push it to 5 years would you suggest Stocks and Shares ISA's and if so what is the potential return or is this not easy to work out? I can't see it listed on providers websites.

somethingcorporate

grunder wrote: »

Thanks for the advice and it seems to reflect what I've been reading. If I could push it to 5 years would you suggest Stocks and Shares ISA's and if so what is the potential return or is this not easy to work out? I can't see it listed on providers websites.

That's because it depends which stocks and shares you invest it in!

It can range between losing everything and making a million - the rate you would likely end up with would probably somewhere inbetween.

black_taxi_2

saving for a deposit --means you cant afford any risk

black_taxi_2

this fixed rate available now looks good

http://www.ybs.co.uk/savings/bonds/index.html

grunder

Thanks for all the advice.

Black Taxi: I am prepared to take some risk as I can't bare the tought of my money just sat there doing essentially nothing and was thinking about a 50/50 split between the YBS account you mentioned and a FTSE All-Share Tracker so I'm not putting all my eggs in one basket. What are your thoughts?

black_taxi_2

fixed rate over 5 years 4.75% available

£1400 a month returns 94,727.84

guaranteed

---

say market dropped 15%

£80,515

grunder

I hadn't looked at it like that and it sounds interesting however I've just checked the small print:

† Fixed Rate Bonds are limited issue products and can be withdrawn at any time. If you wish to make deposits to a Fixed Rate Bond we recommend that you arrange this immediately to avoid disappointment. Any payments received after the Fixed Rate Bonds have been withdrawn will be returned to you.

It doesn't look like it would work for me paying in on a monthly basis. I'll have a google round to see if there's any thing come close.

black_taxi_2

http://www.moneymadeclear.org.uk/