What to do with cash?

rjgb

Hi all,

My wife and I have a fairly substantial amount of savings, which we intend to use to fund a house move next spring/summer.

My question is: what's best to do with the cash in the meantime?

Our Santander 3.30% cash ISAs are full. We have put a couple of thousand in premium bonds as a flutter, but would prefer not to put in any more as the expected return isn't great. We have a 6.0% regular saver and use its full allowance every month.

Assuming we do not want to tie up the money, or risk losing any of it, is our best option just to stick the remainder it in the best paying instant access savings account (currently Coventry BS at 3.25%)?

Thanks,
RJGB

badger09

rjgb wrote: »

Hi all,

My wife and I have a fairly substantial amount of savings, which we intend to use to fund a house move next spring/summer.

My question is: what's best to do with the cash in the meantime?

Our Santander 3.30% cash ISAs are full. We have put a couple of thousand in premium bonds as a flutter, but would prefer not to put in any more as the expected return isn't great. We have a 6.0% regular saver and use its full allowance every month.

Assuming we do not want to tie up the money, or risk losing any of it, is our best option just to stick the remainder it in the best paying instant access savings account (currently Coventry BS at 3.25%)?

Thanks,
RJGB

With that timescale, that's probably your best option. You could look at other regular savers, funded from an instant access savings account, but most require at least 12 monthly payments to achieve the higher interest rate.

If its more than £85k (£170k in a joint account), spread it across several accounts. If one of you is a non taxpayer (and you trust each other:p) put the account in that name and have interest paid tax free. If one is higher rate taxpayer, put the account in the other's name.

BaldySmurf

Facing the same dilemma myself - about to sell our house and go into rented for six months whilst we look around for something we want to buy. We'll need easy access to the pot when we find somewhere so have filled our ISA allowances and the rest will be spread out in easy-access.

I'd not thought of premium bonds but might give a little a whirl.

Stompa

rjgb wrote: »

Assuming we do not want to tie up the money, or risk losing any of it, is our best option just to stick the remainder it in the best paying instant access savings account (currently Coventry BS at 3.25%)?

You don't mention the amount involved, but it may be worth considering the M&S 3 Year fixed rate at 3.75%. Although it's a 3 year term you can close it early by paying a fixed penalty of £100. Depending on the amount involved, and the length of time, that may work out better than a simple 3.25%.