Best 2 year home for £20k windfall

xylophone

Boiler down to land lord.

Of course it won't be once you own your own property again....

Car - would have to use CC/monthly savings

Using the 0% spending would work - otherwise you are depleting your emergency fund - you need to remember to keep it topped up.

Job very very secure so that is highly unlikely.

You're an undertaker...... or employed by HMRC.....:eek:

colsten

gpkwells wrote: »

Boiler down to land lord.

Car - would have to use CC/monthly savings

Job very very secure so that is highly unlikely.

Boiler and car are just a couple of examples. As to employment security...I don't wish anything bad to anyone but it is always good not to be complacent. You should really have a readily accessible emergency cash fund.

gpkwells wrote: »

Premium Bonds seem wise as interest growth isn't the priority

I am not sure I the word 'wise' would spring to mind when putting money into PBs. Safe gamble, yes. Wise? Not if the deposit would represent your entire cash, and certainly not whilst you are paying 5.9% for a loan, and have seemingly no plan on how to pay off the £7K when your 0% CC comes to an end.
Have you read this: http://www.moneysavingexpert.com/savings/premium-bonds
BTW, PBs are basically instant access, too.

gpkwells wrote: »

interest growth isn't the priority

perhaps it should be?

gpkwells

£200 per month saved, ultimately towards purchase costs but also emergency fund.

The 0% balance is being paid off at £200pcm. Remaining balance will be transferred to another 0% card. I have a good credit rating so no problem.

PB's take 1 week to withdraw do they not? That is enough to stop me using on a whim.

gpkwells

xylophone wrote: »

Of course it won't be once you own your own property again....



Using the 0% spending would work - otherwise you are depleting your emergency fund - you need to remember to keep it topped up.



You're an undertaker...... or employed by HMRC.....:eek:

Once I own my own house I am fortunate to have a Gas Installer brother, every other repair I can do my self

Not an undertaker (local market saturated) and not HMRC.

xylophone

Don't want to use current accounts due to instant access

Oh come on! You're a responsible adult, not a teenager with a yen for the latest trainers!

Anyway, the trick is to regard the current accounts as savings accounts under another name.

But if you really can't control the urge to splurge and the interest is not of great importance (?), then consider using your cash ISA allowance and putting £15,000 into a fixed rate version?

http://www.thisismoney.co.uk/money/saving/article-1583864/Best-savings-rates-Isas-Cash-Isa-accounts-fixed-rate-Isas.html

And £5000 into a one year bond? http://www.thisismoney.co.uk/money/saving/article-1621507/Best-savings-rates-Fixed-rate-accounts.html

http://www.theguardian.com/money/2013/sep/28/child-benefit-pension-contributions-higher-earners

http://www.hl.co.uk/pensions/interactive-calculators/tax-relief-calculator

You could open a private pension to run alongside the occupational one.

xylophone

Once I own my own house I am fortunate to have a Gas Installer brother, every other repair I can do my self

A "man who can" who knows "a man who can"!

local market saturated)

I've a relative in North Yorkshire...I'll be scanning the shop fronts next time I visit!

gpkwells

xylophone wrote: »

Oh come on! You're a responsible adult, not a teenager with a yen for the latest trainers!

Yes I am a responsible adult, but I also know myself quite well - hence putting the capital slightly out of reach

Mirno

What costs are there for an overpayment on the loan?
A lump of however much you can build back up in the intervening time would save you 5.9% on that lump, the rest goes into an account of whatever type you pick from those listed already.

Ifts

Looking for a place to park £20K savings while you've got a £20k personal loan at 5.9% doesn't sit right with me but like you say you have your reasons for doing so.

gpkwells wrote: »

but I also know myself quite well - hence putting the capital slightly out of reach

If you don't want to go for any of the accounts/options already suggested and don't mind getting less of a return on your money - to stop you having easy access to your money you could go for a

Notice account: http://moneyfacts.co.uk/savings/notice-accounts/

or 18/24 month fixed rate bond: http://moneyfacts.co.uk/savings/fixed-rate-bonds/

Bank of Cyprus UK had a 18 month fix @ 2.11% when I took one out earlier this month but it now looks like they have reduced the rate to 1.8%.

Ryan_Futuristics

I've got to say your whole approach to money needs to change ... And you'll be a lot better off for it

There's no point earning 2-3% interest on £20k when you're paying 5.6% interest on £27k ... Not clearing debts when you've got the opportunity is simply giving away money - it's choosing to limit your financial freedom and ability to save ... It's what friends of mine with poor money management (who I'm always bailing out) do instinctively

To put it another way: if it takes you 8 years to save £20k, does it take you 11 years to pay off this debt?

No ... What everyone with bad money management does is focus on lump sums and ignore cash flow ... You need to fix your cash flow before you can build any wealth ... There are no two ways about it

Pay off £20k immediately - pay off the other 7 as quickly as possible (debt is the enemy ... Don't ever be in debt) ... Then use whatever money you would've been paying on that debt to save - set up a standing order

I know it might seem like having the money in your hand makes more sense - it REALLY doesn't ... You'll just accumulate debt again ... It's the way to keep the working man down ... All you're doing is paying banker's bonuses ... You can always save money and cut your outgoings

Read Rich Dad Poor Dad ... On £60k you've got no excuses

http://en.m.wikipedia.org/wiki/Rich_Dad_Poor_Dad