Where to save £20,000

Hatchet_Harry

Hi

I'm new to the forum and would appreciate if anyone could give me some advice. My other half's father is going to give us £20,000 to put towards the deposit for our first house, which we plan on buying in a couple of years.

Am I right in thinking it would be best to put the first £5700 into a cash ISA and the rest into a savings account? We are also saving around £1500 between us each month towards our wedding in August next year, but need easy access to this cash to pay for things as we go along.

Thanks in advance

Harry

Nick_C

Depends what you tax rate is. You can get 3% gross in a Santander 123 current account, but you would need to set up some direct debits that qualify for cashback to offset the £2 per month fee. Balance has to be between £3K and £20K.

You can put £2.5K in Nationwide's Flex Direct at 5% gross for a year. You need to cycle a couple payments in and out of the account each month, and you can do this with standing orders.