What to do with £115k?

SieIso

Hi All,

I don't think my finances are well balanced and I was hoping for some advice:

I have £115,000 sitting in a Lloyds current account at the moment that I feel is a poor use of this capital. 

£50,000 in Premium Bonds 

£1500 with a Vanguard Stocks and Shares ISA - I pay in £100 each month.

I have just setup a Regular Saver @7% that allows £300 to be paid in per month.

Finally, I have a pension pot valued at £73,000 and I am 39 years old. I pay in 7.5% of my salary and my employer pays in 11.5% - salary recently increased from £30k to £39k.

I have one mortgage at £70,000 @2.39%, I have currently maxed out the penalty free overpayments for the year.

I am in the near future hoping to move house with my partner, the Premium Bonds money will be the deposit and the will be matched by my partner. 

What I  would like to know is how can I better use the £115k?

Thanks in advance

Stubod

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

Albermarle

I have £115,000 sitting in a Lloyds current account at the moment that I feel is a poor use of this capital

It is.

You could put some in a savings account paying 2.5% to 4.5% interest.

You could pay off some of your mortgage with it ( depending on the mortage Ts and Cs)

You could put more in your S&S ISA

You could add to your pension pot ( it is  not that big considering your age )

Middle_of_the_Road

Have you considered a LISA. Available before age 40.

Lifetime ISA (LISA): how they work & best buys - Money Saving Expert

"If you're pushing 40, make sure you open one before you hit the cut-off age. You can continue to put money into the LISA until the day before your 50th birthday (once you're 50 or over you'll continue to get interest or investment growth/losses but you won't be able to pay in any more)."

eskbanker

Middle_of_the_Road said:

Have you considered a LISA. Available before age 40.

Lifetime ISA (LISA): how they work & best buys - Money Saving Expert

"If you're pushing 40, make sure you open one before you hit the cut-off age. You can continue to put money into the LISA until the day before your 50th birthday (once you're 50 or over you'll continue to get interest or investment growth/losses but you won't be able to pay in any more)."

Just to be clear, LISAs can only be used (penalty-free) towards a first-time property purchase at least 12 months after opening, whereas OP anticipates buying "in the near future". [edit: OP already has a mortgage anyway so couldn't use a LISA to support another property purchase]

LISAs can be used for retirement funding instead though, but will usually be beaten by pension contributions:

https://www.moneysavingexpert.com/savings/lifetime-isas/#pension-2

Krakkkers

Las Vegas.

retiringtoosoon

Pension is the right answer

london21

If you are a higher rate tax payer then pension contribution.

Like others have said savings. Fir example I have put some chunks into santander instant access account paying 2.75%. Other accounts offering good rates.

Barclays 1 year fixed paying 4%.

I am also invested in lower cost index fund Vanguard FTSE Global All Cap Index Investor Acc GBP.

Do some research on the risk and term you are looking to invest in.

george4064

Your pension is small for someone your age, so that should be your first port of call here.

GeoffTF

Impossible to say. It depends on your personal circumstances: income, expenditure, health, dependants, job security, attitude to risk, pensions...

SieIso

Albermarle said:

I have £115,000 sitting in a Lloyds current account at the moment that I feel is a poor use of this capital

It is.

You could put some in a savings account paying 2.5% to 4.5% interest.

You could pay off some of your mortgage with it ( depending on the mortage Ts and Cs)

You could put more in your S&S ISA

You could add to your pension pot ( it is  not that big considering your age )

What should my pension pot be at?