What to do with savings?

Martin.J_2

Hi everyone,


I have 60k in a savings account that as just finished it's 3 year term and I'm looking at ways to make the best use of this money.
I have a 70k mortgage at 2.5% with 16 years remaining, I earn between 16-20k per year and I have no other debts.
With the rates being so low, is it worthwhile me putting the money in another savings account or should I find better ways to invest the money?
Any advice would be much appreciated.


Thanks


Martin

badger09

Not enough information I'm afraid.

Age, other debts, dependants, pensions, ISAs, timescale for using £60k etc etc

Have a read around the forum - there are dozens of similar threads

At the moment, if you want to stay in cash - look at current accounts, Santander 123, Nationwide, Lloyds, TSB, BoS etc etc - again lots of information already provided

Martin.J_2

Sorry for the lack of detail, I'm new to the forum.
I'm 30, recently married & looking to start a family. I have never contributed to a pension and I have no outstanding debts.
I don't have an ISA and I don't have a particular timescale for using the 60k, I just want to make it work as hard as possible for me.
I don't consider myself a risk taker so would I probably be better to go into secure savings rather than investments?

FatherAbraham

Martin.J wrote: »

I have 60k in a savings account that as just finished it's 3 year term and I'm looking at ways to make the best use of this money.
I have a 70k mortgage at 2.5% with 16 years remaining, I earn between 16-20k per year and I have no other debts.

Anything you use to overpay the mortgage (I'm presuming that overpayment is permitted) will earn a 2.5% post-tax return; for a 20% tax-payer, you'd have to find a savings account offering 3.125% gross to match it.

£60k is a lot to hold in cash -- why do you need so much liquidity?

Warmest regards,
FA

R_P_W

You need to seriously start planning for retirement. Having 60k cash receiving next to no interest isn't a good place to be.

PeacefulWaters

£10k in an easy access savings account, possibly using up ISA allowance either side of the end of the tax year (or high interest current accounts). This is your contingency fund.

£20k off the mortgage. Take a reduced monthly payment. Use the saving to invest in a pension scheme. What matching contributions will your company make? What about your partner's pension?

With the other £30k ... any likely vital household bills coming up - boiler, white goods that need replacing etc? Any car replacement costs in the next few years? Stick the money to one side for these (short term fixed rates, easy access savings etc).

Anything left over? Lump sum investment in to pensions or stocks and shares ISA.

atush

With your 60K i'd look at starting a pension- does your employer offer one? If they do and you haven't joined, why? Remember that every 100 inot a pension will only cost you 80 with tax relief and if you can get employers contributions that is just Free Money.

then i would still keep a large amt on deposit for an emergency fund, perhaps pay off 10K (or whatever you are allowed to by your mtg terms) and use a S&S isa for the rest.

carry on saving, then see how you feel once rates go up?