What can I do with £20k?

liamcov

Next month a savings account matures it will have around £20,000 in it and I'm not sure what to do with it. My ultimate aim is saving for a deposit on a house but I don't mind locking it away for another year, the only problem is I don't know where?

I already have a full ISA, a couple of regular savers paying 8% and 4% and another open savings account with 3.1% until Feb so I guess my back up plan is to put the money into the 3.1% account if nothing else is better, any suggestions?

Also on a practical note, how easy is it to transfer such a large sum between account is this allowed or will I be charged?

NickyBat

Have you thought about premium bonds?

liamcov

I thought they were just like lottery with no fixed interest?

john0

if you dont mind me asking what saver do you have thats paying 8%?

psychic_teabag

First Direct and (I think) HSBC have reg savers paying 8%. Both require a "premium" current account, I think, but the First Direct one has trivial ways to avoid the fee.

OP: there are some notice accounts paying slightly higher than instant-access accounts at the moment.

Loopgames

Assuming you are working I would use it to buy a flat in ilford under £90k and rent it out. I say this because it is hard for me to find a one bedroom flat here lol! Agents call me one day that they have one on the ,aren't and swiftly gone in two days. I call them after I viewed some on right move and they r gone already...rightmove is now just a snap shot in history to me!

kylehp04

wow 8% that's really good ....sorry I realize its off the topic.....for the sake of a year I personally would stick it in another high interest account. Especially if you have reached your ISA limit.

creditisbadnews

8% wow that is very good indeed!

innovate

kylehp04 wrote: »

wow 8% that's really good .

creditisbadnews wrote: »

8% wow that is very good indeed!

Guys, these are Regular Savers - - - limited amount you can put in each month, and they mature after a year.

There's a huge long forum thread about Regular Savers, too.

sleepless_saver

Cahoot has a one year savings bond at 3.6% gross.

innovate

liamcov wrote: »

I already have a full ISA, a couple of regular savers paying 8% and 4% and another open savings account with 3.1% until Feb so I guess my back up plan is to put the money into the 3.1% account if nothing else is better, any suggestions?

Also on a practical note, how easy is it to transfer such a large sum between account is this allowed or will I be charged?

Seems you are pretty much on top of what's the best place for your savings. Unless you want to branch out into investments (e.g. S&S ISA - - no guaranteed returns), or tie up your money in a longer term savings account, 3.1% interest looks pretty good for instant access.

Transferring £20K is no sweat - and you certainly should not expect any charges for it. Some banks still have a £10K/day limit for online transfers, so you might need 2 days to transfer everything - - but if you are lucky, your bank allows a lot more (e.g. £25K/day with Lloyds). If you do telephone banking or go into a branch, they should be able to transfer it in a single go.