What to do?

Jaguar_Skills

Ok so bit of brief info:

Going travelling in 8 weeks for a year and a half. Asia (just for fun) then to Aus (where I will do some work)

My savings are as follows:

Santander up to 3% current account 26k
Fixed rate ISA (2 years left) @ 2.7% 16k
S&S ISA (last years) 3k

I have a bonus coming up where I expect to get around 15k - 30k. If I only get 15k I am planning to put the money into my S&S ISA for this year and top it up to 15k on 1 July (NISA). Probably going to invest it in 4 managed funds, 3 medium, 1 higher risk.

If it is more than that, I am not really sure what to do with it. I have contemplated the idea of whacking it all down on a deposit on a flat, so I can buy to let (appreciate that it would need around 25%, which is achievable with my Mum putting in some). The other option is to pay a lump sum off my girlfriends mortgage on her flat, but I would want to be protected in the event something went !!!! over tit.

Does anyone have any recommendations? I don't really want to be left with 15k or so sitting in a rubbish cash savings account whilst I am travelling?

Thanks in advance.

P.S. If it helps I should be able to know the extent of the bonus in the next week or so.

greenglide

Pension contributions?

Jaguar_Skills

Can you stick a lump sum into a pension contribution? Does that also mean you can only take it out when you are 65?

Jaguar_Skills

Also does anyone have any opinions re investing the money into my girlfriends flat?

ColdIron

Jaguar_Skills wrote: »

Can you stick a lump sum into a pension contribution? Does that also mean you can only take it out when you are 65?

Yes you can stick a lump sum into your pension. You can access it from 55 onwards, simply taking it back out is not how pensions work

Jaguar_Skills

Thanks. Yes the only thing I am cautious of doing it this way is when I return from travelling I may need to access it for a house etc therefore hoarding it till then isn't really that viable an option?

eskbanker

ColdIron wrote: »

Yes you can stick a lump sum into your pension. You can access it from 55 onwards, simply taking it back out is not how pensions work

It is effectively how they work from April 2015 though, so assuming that OP will reach 55 after that, they could just take it back out (to buy the infamous Lambo), albeit doing so would have some tax disadvantages....

Onawingandaprayer

Is your girlfriend coming with you? If not, - and you help with her mortgage - you need to be very very sure of your relationship, being away for some 18 months!:eek:

innovate

Why do you have £26K in a 123 when it only pays interest on up to £20K? Do you have it split across 2 123s?

As to the extra money....TSB Plus 5% and Club Lloyds 4% will take £9K. You can do another £10K in good monthly savings accounts (First Direct, Club Lloyds, HSBC). At present, you still can get 3x£15K into BOS Vantage, but it is unclear how long that one will last.

Putting some into S&S ISA is ok if you can leave it in there for at least 5-7 years which it doesn't sound like you want to do.

There's apparently also a 3% 90 day notice cash ISA available at DotComUnity, or you could look into the Newcastle BS big home saver offerings - 3% on ISA and and non-ISA versions, and you can have them both in parallel (and they have nothing really to do with home savings). They are max £1,250 a month each but they don't expire after 12 months, like normal monthly savers do. Finally, I can think of the Nationwide 2.5% regular saver that allows you to put in £1K a month and doesn't expire after 12 months, either.

Plenty of cash savings choices for you. I have probably forgotten some.

EDIT: 'ere we go....forgot the Halifax Reward that pays you £60 a year for just following their rules.

butterflymum

innovate wrote: »

At present, you still can get 3x£15K into BOS Vantage, but it is unclear how long that one will last.

3 x £5K = £15K
(just in case anyone thinks you mean 3 x £15K = £45K)

innovate

butterflymum wrote: »

3 x £5K = £15K
(just in case anyone thinks you mean 3 x £15K = £45K)

Jee, I did get carried away there!!!!!!!! Thanks for reading what I write, and for spotting those deliberate (!!!!!) mistakes, butterflymum.

I confirm I have no reason to believe that BoS offer any more than 3x£5K Vantage accounts.