long term advice

bowlhead99

CreditCardChris wrote: »

I do enjoy a good joke :rotfl:

Even if you could find a savings account with a "good" interest rate, the amount you can save will be heavily restricted.

HIn the post you're quoting, he was suggesting putting half the £700 per month into a savings account in case of emergencies. For the first year at least, Coventry would let you drop in £500 a month (more than the £350pm proposed) without hitting any limits or needing any other accounts with them. They pay 2.5% AER on the regular saver product which is 3.33x the Bank of England base rate.

After the first year you would need to find a new home for it, but could perhaps use a fixed term account for a 'better than instant access' interest rate if you were still putting away £500pm for your 'on hand' money in another regular saver account or two with someone else. Failing that, there are several providers paying in the 1.5-1.7% range for notice accounts (i.e. around twice the UK base rate or GBP libor) and would generally take a million or so rather than being 'heavily restricted'.

So if the person was building up a large 'rainy day fund' alongside their long term investments, the options out there are not too bad.

ec9wrr

dd95 wrote: »

that's very true, would it be worth taking the funds out if returns are decent if for example she was looking to move in a year or so (i.e after minimum 10 years time). Otherwise she may wait until the money is required for the transaction and it could have dropped by half in that time?

thanks all appreciate it

Or the funds could double in that time. You’re asking an impossible question.