What to do with my house deposit money?

RWinter1993

Hi all,

I’ve recently inherited 50k which I am planning to put towards a house deposit in the next 3-6 months. Where would be the best place to keep this money to make it work for me, as currently I’m getting minimal interest in my bank account.

I already have a LISA maxed out for this year so my understanding is I’m limited to putting £16k in any other ISA. I also save £400 a month into a club Lloyds regular saver but this was when the interest rate was much lower at around 2% and is due to mature in October so I’m thinking of putting this money elsewhere (Currently 3k saved)

Chip currently have a 4.10% fixed saver where you have to give 90days notice to withdraw. Am I right in thinking this might be a good option, even if I have to pay some tax on my savings, or my other option is going all in on premium bonds? Really unsure on what to do, any help/guidance is appreciated! 

masonic

Firstsave has a better paying notice account. Premium bonds would not be a very good option over such a short period, as there will be a void period before you are eligible to be entered into draws.

Wouldn't you be better off pulling the money out of the Lloyds RS now, given you can get a better rate elsewhere?

wmb194

RWinter1993 said:

I also save £400 a month into a club Lloyds regular saver but this was when the interest rate was much lower at around 2% and is due to mature in October so I’m thinking of putting this money elsewhere (Currently 3k saved)

This is an instant access account so you can close the account or withdraw the money now, you don't need to wait. Even though the terms say you can't, if you've closed your 2% one you can open the current 6.25% version straight away.