48k - where to save with easy access

united4ever

I am looking to sell my house and buy a new place. Had a 48k deposit put into my current account but my sale fell through so back to square one. Still hoping to move house sometime this year but don't know how long that may take.

Therefore, where's best to keep my £48k. I know I can put some in an isa but which one and what about the rest (must be easy access).

I have a current mortgage of £63k at 2.5% interest and also student loan with about £1500 to pay off.....otherwise I am debt free.

soulsaver

Lloyds Club £5k@4%
TSB 2x£2k @ 5%
Santander 123 £20K @ 3% (£2 pm charge but cash back on DDs utilities, telephony, council tax will likely cover)

Double those £ by joint accounts & perm your favourites.

If you're single check if you can still have 2 off 123 accounts.
These accounts need maintenance - DD s etc. Search on here for finer points & work rounds for each.

eskbanker

soulsaver wrote: »

If you're single check if you can still have 2 off 123 accounts.

Don't bother, answer is 'no'! http://www.santander123.co.uk/ confirms: "One single or one joint 123 Current Account (or one of each) per person only"

united4ever

good options, will look at setting them up. How would this compare with just paying 48k off my remaining 63k mortgage if there is no penalty to do so from the mortgage company (need to check this - got a feeling it may be limited to 100% overpayments). The 48k would be there when it comes to moving but in the form of equity rather than cash deposit.

united4ever

soulsaver wrote: »

Lloyds Club £5k@4%
TSB 2x£2k @ 5%
Santander 123 £20K @ 3% (£2 pm charge but cash back on DDs utilities, telephony, council tax will likely cover)

Double those £ by joint accounts & perm your favourites.

If you're single check if you can still have 2 off 123 accounts.
These accounts need maintenance - DD s etc. Search on here for finer points & work rounds for each.

I am married so looking at 10k in a joint account with lloyds club then 30k in sanander and then the remainder leave for an ISA

innovate

What sort of an ISA? Why an ISA? didn't you say you want to use the money in a few months time?

united4ever

Just checked with my mortgage bank and it seems that there is no penalty to overpay a lump sum like this.

Based on the calculator below it comes out that unless the savings account pays at least 3.1% then I am better off overpaying the mortgage. Not sure how sophisticated this calculator is but does this sound right? Does it for example take into account that my monthly mortgage payments going forward would pay off more capital and less will go on interest as I will be down to the last 15k of the mortgage?


http://www.moneysavingexpert.com/mortgages/mortgages-vs-savings

united4ever

innovate wrote: »

What sort of an ISA? Why an ISA? didn't you say you want to use the money in a few months time?

an isa which is easy access - i know the interest rate will be much less but they do have them right with no penalty for full withdrawal of funds. Maybe an Isa is not the right choice for my situation - i know they are more for long term savers, not for my situation.

YorkshireBoy

united4ever wrote: »

I am married so looking at 10k in a joint account with lloyds club then 30k in sanander and then the remainder leave for an ISA

If you don't want to mess with DDs, the following will take care of £45.5K

TSB Plus: 2 sole each*, £8K @ 5% AER
Nationwide FlexDirect: 1 sole each plus 1 joint, £7.5K @ 5% AER
BoS Vantage: 3 sole each, £30K @ 3% AER

Total return: 3.62% gross (2.89% net of BR tax)

Keeps your cash 'liquid', rather than paying down the mortgage.


* Rumours you can also get a joint account on top, so you could put virtually the whole £48K in the above accounts.

innovate

Good selection, YB, and not a cash ISA in sight :cool:

Fewer current accounts, slightly less interest, and some DDS needed with 2 Santander 123s. Still no cash ISA needed.