Best place for £20k that I might need?

hessodreamy

I've squirrelled away about £20k which might be getting used for a house move or just security in case of illness etc. I've got £125k and 20 years left on my mortgage.

What's the best thing to do with my savings given that I might need it at some point? An ISA?

daveyjp

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

[Deleted User]

If you wire me £20k to Lagos, I can release funds of £1000000, which I'll split with you 50/50.

Oh, what the heck! You sound like you need it more than me, so wire me the £20k and you can have the lot!

Prince Sleazy of Scamville 319, Lagos, Nigeria.

george4064

It sounds like you want to keep this cash readily accessible, so therefore I would recommend you deposit the money in an account(s) listed in the link daveyjp posted.

DiggerUK

As a rainy day fund it is way too large. I would reduce mortgage by £15k, which would allow you to increase repayments with savings on reduced mortgage payments. (check t&c's)
If your plan is to move house then you can't lose the money doing this..._

webjaved

Have you considered using that money to pay off some of the mortgage? If not, look at the savings account link posted further up the thread.

LobsterMemory

DiggerUK wrote: »

As a rainy day fund it is way too large. I would reduce mortgage by £15k,

Really?

My impression was that standard advice was to keep 3-6 months salary as a rainy day fund, going up to a year if you had a particularly precarious situation or more dependencies

£5k emergency fund seems pretty low to me

18cc

Or you could buy 20K worth of premium Bonds you never know you might win enough to buy a house

steampowered

If you are intending to save for the long term, the best use of this money will be maximising pension contributions to get tax relief (presumably you are a tax payer).

The next best use will be to invest in a stocks & shares using a balanced low cost investment fund, such as a Vanguard fund.