5K to invest / save

sharonfrancis

Hello
I am new to saving / investing. I am normally your got it spend it type of girl.
My priorities have had to change now that I am 35 and have 2 young kids.

So I have been given 5K as a start for a house deposit...

I looked at various ISA's to put money in but after speaking to friend they suggested I put in a tracker fund. I have tried reading up on them but being a bit of a thicko have found it an absolute minefield.

Anyone got any ideas on where I should put the money - I plan to put £50-100 in each month. And then I "may" be getting some money off my mum later in the year which could possibly bump up my deposit money. If it doesnt happen then I want to continue building my nest egg so that if I never get to buy a house in my lifetime then the 2 kids will have some money to put towards their own houses......

HELP!!

sharonfrancis

just to add I would like to make a good return on my money - not for it to be sat in a bank making 1.5pc.

ChopperST

^ wouldn't we all ^

Do not use a tracker fund for a house deposit. 5 years is the absolute minimum to consider investing.

Look at the best buy savings accounts (which are actually current accounts) in the board guide. Nationwide Flexdirect and Santander would be your best bets at the moment. A couple of hoops to jump through each month but worth the effort.

There's also the Halifax Reward that gives you £5 for paying in £750 a month and having two direct debits.

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest
http://www.nationwide.co.uk/products/current-accounts/our-current-accounts/compare?cmpid=PaidSearch_114490
http://www.halifax.co.uk/bankaccounts/current-accounts/reward-current-account/

GL

jimjames

sharonfrancis wrote: »

just to add I would like to make a good return on my money - not for it to be sat in a bank making 1.5pc.

If you are looking to save for a house deposit then unfortunately low rates are what you'll be looking at.

Most people would think it was crazy to put money for a house deposit into share based investments. However if you are fully aware of the risks and prepared to take such a big chance on it then there is no rule that actually stops you.

It may just mean that you aren't able to move when you were planning to do so if the deposit has dropped as a result of a stock market slump.

mrs_T

What about this? http://www.newcastle.co.uk/savings/big-home-saver.aspx at least you get a bonus.

bigadaj

Some banks and building societies also have regular savings accounts that can help you to get a mortgage, might be worth looking at these, believe nationwide are one for example.