Where to save?

scorchedfingers

We have sold our house and are currently in rental as the new house will not be ready until may/June next year.

We have paid off our mortgage and a 10% deposit on the new house.

I have £100,000 left to save.

£20,000 staying in Santander 123 account at 3% per month.

What do I do with the rest, another Santander account or lump sum of £80,000 in an instant saving account.

Please help!

YorkshireBoy

scorchedfingers wrote: »

What do I do with the rest, another Santander account or lump sum of £80,000 in an instant saving account.

I suppose it all depends on whether you want 3% or circa 1.4% gross?

As there are two of you, you could get £60K in 3 Santander accounts. Then all you have to worry about is the £40K remaining.

You could get all of it making 3-5% AER, but whether you'd want to mess around with 19 current accounts over such a short timescale is another matter!

Kendall80

scorchedfingers wrote: »

We have sold our house and are currently in rental as the new house will not be ready until may/June next year.

We have paid off our mortgage and a 10% deposit on the new house.

I have £100,000 left to save.

£20,000 staying in Santander 123 account at 3% per month.

What do I do with the rest, another Santander account or lump sum of £80,000 in an instant saving account.

Please help!

Could you not have put down a bigger deposit? Improving your LTV ratio almost always guarantees a better mortgage offer.


I put everything except 10k into this pile of bricks 2 years ago and my mortgage is £430 a month.


As for what to do with 80k - nice problem! You could max out your SIPP allowance for the year for the both of you. 40k into each account. If you are basic rate taxpayers you'd get 10k on each from the government at the outset - a decent return


You also have various other options such as splitting it around high interest current accounts or opening a stocks n shares ISA.


Maybe a combination of the above.