We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
What to do with £20k???

cassie1968
Posts: 7 Forumite
Hi, hope you can help. I have money to save/invest for the first time ever after selling my flat. I have always been hopeless with money and after paying off all my debts will be left with around 20K. I am renting a property that my parents own and may look into buying it from them in a few years. Just not sure what to do with the excess cash. Certainly dont want to blow it and end up in debt again!!!! I dont mind not having access to it for a few years. I know you can only put so much into a cash ISA but what do I do with the rest? Dont know where to start!!! Many thanks
0
Comments
-
Loads of choices in the banking and saving sections above.
If you're worried about spending it look for the postal savings accounts and the fixed rate savings accounts.
Cash ISA limit is £5640 per year0 -
Best place to start is to max out this years isa allowance. Its also advisable to keep a small emergency fund just in case. Anywhere between 3-6 months of your monthly salary total. The rest, try considering a fixed rate bond. Higher interest rates and no temptation to touch it0
-
Thanks for the suggestions. I will def get an ISA for this year. What happens next year, have noticed that interest rates seem to go down quite alot. Is it easy to transfer to another ISA with the same bank? Dont mean to sound thick but I really dont have a clue lol!! Also, are there any tax implications that i have to worry about? Will def look into savings accounts and fixed rate bonds. Have never been in this situation before where i actually have some money to save and dont want to mess it up!0
-
cassie1968 wrote: »Thanks for the suggestions. I will def get an ISA for this year. What happens next year, have noticed that interest rates seem to go down quite alot. Is it easy to transfer to another ISA with the same bank? Dont mean to sound thick but I really dont have a clue lol!! Also, are there any tax implications that i have to worry about? Will def look into savings accounts and fixed rate bonds. Have never been in this situation before where i actually have some money to save and dont want to mess it up!
It is straightforward to transfer to the same or another bank, there are no unpleasant consequences. First task is to find a new ISA you like and check that it will accept transfers-in. Some special deals dont. If transfers are accepted then go and see the new provider who will give you a form to fill in. Once you have returned the form, the new provider is responsible for arranging the transfer.
DO NOT withdraw the money from your old fund and hope to move it yourself. It will lose its ISA status and will be regarded as a deposit for the current year.0 -
OMG!! So confused. Currently with Santander. Have checked on their website about transferring to another ISA after the year is up but it doesnt say much. But it looks like there are better interest rates out there so might be better off going elsewhere. One thing i do know is that i definitely do not want any access to any ISA's/savings bonds for at least 2 years. Thanks for all your advice.0
-
cassie when Linton suggests to look at isas that allow transfers in, it means if you decide to take out a brand new isa, then check with the new provider to see if they allow you to transfer any old isas into the new isa. That way if you currently have an isa on a low rate you can transfer the funds into your new isa
the new isa provider Will arrange the transfer If its possible.0 -
Some ISA providers, inc. Santander, will let you "upgrade" an ISA to the latest model, once the bonus expires. They don't tend to advertise it (presumably since they'd rather you stayed on the lower rate), but you can just phone and ask them to "redesignate" (or upgrade, or convert, or whatever term they're using that year).
The Santander site will almost certainly tell you how to transfer an ISA to them. Transfers out are done by the new provider.0 -
Perhaps you could take out a two year Isa and a one year fixed rate bond, using part of the the maturity proceeds to fund next year's ISA.
http://www.money.co.uk/savings-accounts.htm0 -
Thanks for the suggestions. Sounds like an ISA and fixed rated savings bond is for me. Will get in touch with my bank and get the ball rolling. Thanks again0
-
Don't assume that your bank will offer competitive products.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply

Categories
- All Categories
- 352.1K Banking & Borrowing
- 253.5K Reduce Debt & Boost Income
- 454.2K Spending & Discounts
- 245.1K Work, Benefits & Business
- 600.7K Mortgages, Homes & Bills
- 177.5K Life & Family
- 258.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards