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First Time Saving - What options do I have?

Hi there,

A little background I guess. I am 21 years old and living at home. Through my father, my grandfather's inheritance and a little saved on the side, I have a low five-figure sum sitting right now in a bank saving's account. At the moment with everything that has gone on, the saving's account has dropped to a lowly 0.1% interest rate which is not great, to say the least.

Now I know very little about banking, savings and anything of this sort. Layman's Terms would be grateful in explaining what my options would be. The hope is to within the next four or five years, save enough to put down a deposit and eventually move out into a place of my own. I don't plan to go down the renting path, something my family have been very supportive of, and so right now it is the case of what choices there are in regards to increasing that number.

One option that I would have explored was the Help to Buy ISA. That would have seen my savings increase by 25% so long it all went towards a mortgage on a house. That, however, is no longer an option, being pulled late last year with seemingly no replacement in sight. Other ISAs I have seen see a 2-3% increase annually, which is perhaps more standard, no nowhere near the 25% that was offered at one stage.

Speaking to someone I know, one option they would recommend is to invest in stocks and shares. With this option, companies right now may be at an all-time low, but in four or five years time, should see a major improvement. For the most part, the value of shares goes up and so over the long period, I should see an increase in my investment.

Like I say, this is my very first steps into saving. At some point in the future I'll start exploring mortgages and other home purchase options, but at this stage, it's just a first look at what I can proactively be doing to help myself down the line.

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