9k what to do?

natstu2005

hi we have about 9k to put away and am lost.

morgage 2.79% could do lump sum payment
only done 1 isa this year as rate so low.
already have YBS monthly account £500 @ 3.something
and 2 of their £250 per month reg saver in the kids names @ 3. something.

was considering premium bonds with some of it????
morgage extra payment?????
leave it where it is - internet account @ 1.2% ???
new kitchen, lol

it can go for long or short term investment, dont want to risk any loss however.

Lith

Hight Interest Account? (if its worth it)


or make a new bank account and dump the money in there.


new kitchen sounds nice though lol

xylophone

As you say, you could make a lump sum payment and reduce the mortgage.

You and your wife are basic rate tax payers?

You might each open a Flex Direct account with Nationwide, put £2500 in each, £1000 a month into/ out of each account for a year. This would give you 5% gross on £5000 for a year.

You might consider the Santander I23 account
- see http://www.moneysavingexpert.com/banking/compare-best-bank-accounts

It seems a pity to waste your ISA allowances - the return is not good at the moment but might be in the future and the allowance is use it or lose it.

natstu2005

xylophone wrote: »

As you say, you could make a lump sum payment and reduce the mortgage.

You and your wife are basic rate tax payers?

i am the wife, with total financial control, the other half doesnt even know how much we have or where it all is, lol.

You might each open a Flex Direct account with Nationwide, put £2500 in each, £1000 a month into/ out of each account for a year. This would give you 5% gross on £5000 for a year.

thot on this but really didnt want the trouble, already have an old nationwide flex account.

You might consider the Santander I23 account

will NEVER deal with santander again no matter what.

It seems a pity to waste your ISA allowances - the return is not good at the moment but might be in the future and the allowance is use it or lose it.

this is the trouble x


thank you

xylophone

If you don't want the trouble of moving money around to get the best available interest, and assuming that you have an emergency fund in place, you might just as well pay a lump sum off the mortgage?

kidmugsy

Some mortgages allow you to reborrow later any money you've overpaid - if yours is like that overpaying might be a pretty good deal.

Others that refuse to let you reborrow do at least let you later suspend payments until the overpayment is "used up". That might be a good enough deal to attract you.

So you want to check the Terms and Conditions.

atush

Do you have a pension? you don't mention using your S&S isa allowances?

Equities are outperforming cash now, and beating inflation now, and can be expected to over longer periods in general.

Seems to me you have cash and property but no investments?