£35,000 to tie up for two years (New to saving) advice needed!!!

DiegoGarcia

Hello,


I just recently split up with my partner and we had a Mortgage together which we were paying into together for the past 5 years or so, we sold a house and bought a house, and then sold the new one when we split, . Since we split up and my share of the House sale came through I am unsure what the best option for my money is. I am still quite young, and have never had this amount of Money in my account before. I am looking to save as much as I can over the next two years to add to this amount, before purchasing my own Flat. I am a British Citizen, I have an ISA open at the moment, but it pays a very low interest and I have no money in it at the moment.


I was hoping someone with the experience of saving into accounts/Bonds etc would be able to point me in the right direction, I know I can fill up one ISA with £15k but what would you advise I do with the other £20k. All suggestions welcome!!!

Archi_Bald

Best interest these days is in current accounts and regular savings accounts. Spend some time on the forum to read up about the various accounts. You can easily get between 3 and 6% AER for over £50,000.

Cash ISAs are not much use - although you might want to have a look at the Save To Buys ISA that might become available later on this year. Again, it's discussed on the forum.

xylophone

Save To Buys ISA that might become available later on this year. Again, it's discussed on the forum.

http://www.moneysavingexpert.com/savings/help-to-buy-ISA

The OP is not a first time buyer so would not seem to be eligible?

xylophone

A 123 account? 3% on £20,000

http://www.santander123.co.uk/?cid=ppc-ca-goo-br-santander%20123&gclid=CPXC7-bWoMUCFarKtAodeV8A_Q

A Nationwide Flexdirect 5% on £2,500 for a year.

A Club Lloyds Account http://www.lloydsbank.com/current-accounts/club-lloyds.asp 4% on £5000.

There is also a regular saver available with above.

A TSB Classic Vantage Account - 5% on £2000.

Two Tesco current accounts - 3% on up to £3000 in each. If you deposit £3000 in one and £2500 in the other, you can move the interest earned on other accounts into the space.

Tesco have two savings accounts which will "pull" by DD from other bank accounts.

You can set up the Tesco accounts to fund each other - SO back and forth on the same day.

You can move £1500 from Santander to Nationwide to Lloyds to TSB and then back to Santander.

Be careful of the Santander "monthiversary" for funding.

Santander and Lloyd require at least 2 DD's.

Be careful to read terms and conditions for each account.

DiegoGarcia

So I could have various accounts that would gain interest?
Just depending on how many Direct Debits I could have coming out of each one?

macman

No, 2 DD''s only applies with Santander 123 and Lloyds.
S123 requires a monthly funding of £500.
If you want to keep it simple, put the maximum £20K in an S123.
65+ NS&I bonds is another option if you are of that age.

badger09

macman wrote: »

No, 2 DD''s only applies with Santander 123 and Lloyds.
S123 requires a monthly funding of £500.
If you want to keep it simple, put the maximum £20K in an S123.
65+ NS&I bonds is another option if you are of that age.

DiegoGarcia wrote: »

Hello,


I am still quite young, and have never had this amount of Money in my account before.

As others have said, current accounts & their linked Regular Savers, pay the best interest.

Have a read around this, and the Budgeting & Bank Accounts forum for more ideas.