25k Where should we put our money?

greensalad

steampowered said:

Personally I would just leave it in a savings account. 

Premium bonds are fine for short term savings, but it can take a bit of time to withdraw them. Not really worth the hassle if you want the money again in 6 months.

What do you constitute "a bit of time"?

I withdrew and received mine in 2 working days, which doesn't seem to be that long at all.

finance4all

Wrighty74 said:

Hello everyone, hoping you can give me some advice please as finding a lot of information confusing!

My partner and I have recently been left about 25k between us and we plan to use this to purchase our first home, but we won’t be in a position to do that for about 6 months or so. 

My question is where should we put our money in the meantime, given that we will probably want access to it within the next year but would like it to work for itself a little until then?

Thanks in advance! 

It depends on your current banking situation. Do you have an easy access saving account? I would put the whole amount in one of them and later open 2 regular saving accounts:
Virgin: Home Buying Coach Regular Saver, 1.75% 250/month
Principality: First Home Steps Online, 0.8%-1.5%, 1500/month
There is always a chance when looking for the first home 6 months will turn into 12 or more.

Thrugelmir

Do you have cash LISA's? If not a good option. You would be able to get £8k each in , within the next year. 

csgohan4

Thrugelmir said:

Do you have cash LISA's? If not a good option. You would be able to get £8k each in , within the next year. 

I thought max 4k per person?

https://www.gov.uk/lifetime-isa

eskbanker

csgohan4 said:

Thrugelmir said:

Do you have cash LISA's? If not a good option. You would be able to get £8k each in , within the next year. 

I thought max 4k per person?

https://www.gov.uk/lifetime-isa

£4K per person per tax year, of which there'll be two in the next few months....

sevenhills

Wrighty74 said:

My partner and I have recently been left about 25k between us and we plan to use this to purchase our first home, but we won’t be in a position to do that for about 6 months or so.

I am a risk taker, so I would buy 5 x £5,000 shares.

jimpwarsop

Premium Bonds.

I'm saving for my daughter and put a maturing one year account of £25454 in to PB yesterday.

theforest

csgohan4 said:

So you want someone who needs the money in 6 months or so to invest in a volatile cryptocurrency, are you mad?

I said no such thing. DeFi includes nonvolatile stable coins pegged to the value of their associated fiat currency (USD, Euro, GBP etc.).

Are you saying that cryptocurrency is safer than PB? given they need to use it in 6 months? If you answer yes, you have no idea what risk management nor taking into account the OPs circumstances are. 

Again I neither said or implied such a thing. In my opinion Premium Bonds are very low risk and I'd rate stable coins via DeFi as a moderate risk. In any case I would spread the risk over a manageable number of investments and not venture beyond a moderate risk for just six months.

Cryptocurrency and stocks and shares I would rate as high risk and would not advocate investing in them unless you have done your own research and have time to track and trade on their performance for the long term.

[Deleted User]

Bonds, I withdrew 20k the other week and it was with me in a few days. No trouble with withdrawing, and often won £25 per month, someones 2x £25. 

george4064

[Deleted User] said:

Bonds, I withdrew 20k the other week and it was with me in a few days. No trouble with withdrawing, and often won £25 per month, someones 2x £25. 

* Premium Bonds.

Given the short 6 month time frame, you don’t have any choice other than basic saving accounts, notice accounts or Premium Bonds. Also, the interest you earn is not exactly going to be significant, unless you strike extremely lucky and win the £1m Premium Bonds prize.