Bonus money: where to put it?

CMB93

I’ve just had confirmation of my bonus for this year, £3,500 before tax. 

I keep going back and forward on what’s best to do with it, make it go the furthest. 

My father in law loaned me £7,500 towards buying our house, which I pay back at £200 a month interest free (upping to £250 come April payrise). Obviously giving this straight to my father in law would reduce the term of the repayments. 

HOWEVER, we’re also saving for a wedding happening in 2023. 

Would I be better to pay the lump sum to my father law, almost halving the time I’ll be paying back and which will leave me with more each month to save for our wedding when the repayment is finished.  Or do I put the money into a saving account with the highest interest rate I can find? About 3% with NatWest is the best I can find. 

What option will give me the most for my money? 

Alexland

CMB93 said:

What option will give me the most for my money? 

Probably asking your employer to pay it into your pension.

eskbanker

CMB93 said:

About 3% with NatWest is the best I can find.

What account is this?

In your shoes, I'd choose to repay my current father-in-law (if you're remarrying in 2023 then he's already being generous if he's lending you money) rather than prioritising a few extra quid elsewhere....

MDMD

eskbanker said:

CMB93 said:

About 3% with NatWest is the best I can find.

What account is this?

Presumably it’s the Digital Regular Saver, but at £50 per month it would take over 12 years to get the full £7,500 in there.

https://personal.natwest.com/personal/savings/digital-regular-saver.html

CMB93

eskbanker said:

CMB93 said:

About 3% with NatWest is the best I can find.

What account is this?

In your shoes, I'd choose to repay my current father-in-law (if you're remarrying in 2023 then he's already being generous if he's lending you money) rather than prioritising a few extra quid elsewhere....

I meant my current fiancé's dad (we bought the house together). He said he is in no rush to receive the money back, and wants me to do what is best for us. 

I’m asking what will be best within the next two years - not what you think of my personal circumstances when you got the wrong end of the stick. 

CMB93

MDMD said:

eskbanker said:

CMB93 said:

About 3% with NatWest is the best I can find.

What account is this?

Presumably it’s the Digital Regular Saver, but at £50 per month it would take over 12 years to get the full £7,500 in there.

https://personal.natwest.com/personal/savings/digital-regular-saver.html

I would be paying my father in law directly each month. The question is: is it better to continue with current payment schedule (ending in 2023), and put the bonus into a savings account with interest for our wedding. OR pay the lump sum to my father in law and save for wedding each month through regular saving account? 

Linton

CMB93 said:

MDMD said:

eskbanker said:

CMB93 said:

About 3% with NatWest is the best I can find.

What account is this?

Presumably it’s the Digital Regular Saver, but at £50 per month it would take over 12 years to get the full £7,500 in there.

https://personal.natwest.com/personal/savings/digital-regular-saver.html

I would be paying my father in law directly each month. The question is: is it better to continue with current payment schedule (ending in 2023), and put the bonus into a savings account with interest for our wedding. OR pay the lump sum to my father in law and save for wedding each month through regular saving account? 

The interest rate will be too small to make a significant difference no matter which approach you take. .  So I suggest you do whatever is easiest - probably keep to your agreement with your FiL and have the bonus available for the wedding.