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Where to put £20,000-£30,000

After years of struggling with debts, and finally feeling sorted, I have found myself alone with an unaffordable mortgage. Consequently it appears likely I need to sell my house. This should hopefully leave me with something in the region of twenty to thirty thousand pounds from the equity.

Obviously at some point in the future I hope to be able to buy again, so need to be able to save this money for that time.

Presumably I should put the first £3000 into an ISA straight away, and keep transferring £3000 each year to that ISA as time goes on from wherever else it is.

But where else should it be? Is it really as simple as just finding the highest rate savings account, and maybe switching around once a year or so as rates change? Or should I be considering other options?

Comments

  • wombat42_2
    wombat42_2 Posts: 1,312 Forumite
    tafkam wrote: »
    After years of struggling with debts, and finally feeling sorted, I have found myself alone with an unaffordable mortgage. Consequently it appears likely I need to sell my house. This should hopefully leave me with something in the region of twenty to thirty thousand pounds from the equity.

    Obviously at some point in the future I hope to be able to buy again, so need to be able to save this money for that time.

    Presumably I should put the first £3000 into an ISA straight away, and keep transferring £3000 each year to that ISA as time goes on from wherever else it is.

    But where else should it be? Is it really as simple as just finding the highest rate savings account, and maybe switching around once a year or so as rates change? Or should I be considering other options?

    I cant see much wrong with that. Best paying accounts are currently ICICI, ICESAVE & Sainsburies. I wouldnt mess with equities unless you can be sure you can avoid touching it for 5 years plus.
  • Heinz
    Heinz Posts: 11,191 Forumite
    Part of the Furniture Combo Breaker Car Insurance Carver!
    tafkam wrote: »
    Presumably I should put the first £3000 into an ISA straight away, and keep transferring £3000 each year to that ISA as time goes on from wherever else it is.
    £3,600 from the 2008/9 Tax Year.

    http://news.bbc.co.uk/1/hi/business/6475891.stm
    Time has moved on (much quicker than it used to - or so it seems at my age) and my previous advice on residential telephony has been or is now gradually being overtaken by changes in the retail market. Hence, I have now deleted links to my previous 'pearls of wisdom'. I sincerely hope they helped save some of you money.
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