Maximizing savings

heytoki

Hello all,

Currently i have 50K on the Premium bonds. After a couple of months of disappointment with the prizes, i have decided to withdraw that money and putting on saving accounts. I dont want to lock this money as i might need some in the sort/medium term. Any advise on how to distribute it? i.e. 20k ISA and rest in a saving accounts that gives around 5%? is this feasible?

Thanks and regards. 

friolento

Whether you benefit from an ISA depends on your total income. https://www.moneysavingexpert.com/savings/personal-savings-allowance/

How you distribute, or even whether you distribute, is your choice. There is a huge range of savings accounts. Make sure you are happy with the T&Cs of the account(s) you choose. https://moneyfactscompare.co.uk/savings-accounts/

Mark_d

The average rate of return on premium bonds is I think 4.4% tax free.  You don't win prizes on a constant rate throughout the time of your investment.  So if you're only investing for two months, it's fairly likely you get nothing at all in that time.

How quickly would you need money and how much to you need instant access to?

Assuming your entire savings/investment is the £50k.  Assuming that you might need access to a maximum of £10000 within a year.

I'd put £20k in an S&S ISA (you can choose a low risk fund).  The remainder could be in a high interest savings account, earning around 5%.  Then next financial year you can add another £20k into your S&S ISA.

mebu60

You may want to consider whether you can lock some of the money away for a year to guarantee the rate as easy access savings rates likely to fall over the next year.

allegro120

heytoki said:

Hello all,

Currently i have 50K on the Premium bonds. After a couple of months of disappointment with the prizes, i have decided to withdraw that money and putting on saving accounts. I dont want to lock this money as i might need some in the sort/medium term. Any advise on how to distribute it? i.e. 20k ISA and rest in a saving accounts that gives around 5%? is this feasible?

Thanks and regards. 

Yes this is feasible.  I'd put 20k in Trading 212 flexible cash ISA (5.2%) https://www.trading212.com/isa?cash-isa=&promo-code=MSE and £30k in Ulster Loyalty Saver (5.2%) https://www.ulsterbank.co.uk/savings/easy-access-account.html
For Ulster Loyalty you'll need to open current account with them.

heytoki

Thanks for your reply. 
i wouldnt need access to a substantial amount. Just in case something unexpected happen (i.e. car repairs, house maintenance, etc).
The idea is that if i get around 5% monthly, that would be around £200 a month (after taxes around 150?). The reason i am looking at this is because my mortgage will go up £130 a month from October so the amount i get from the saving accounts will offset the mortgage increase and i can maintain my level of spending. 
i am not looking at Stock And Shares ISA as i already use a low cost broker account where i add money every month. The 50K is my security fund that i rather to have in cash. 

Mark_d

heytoki said:

Thanks for your reply. 
i wouldnt need access to a substantial amount. Just in case something unexpected happen (i.e. car repairs, house maintenance, etc).
The idea is that if i get around 5% monthly, that would be around £200 a month (after taxes around 150?). The reason i am looking at this is because my mortgage will go up £130 a month from October so the amount i get from the saving accounts will offset the mortgage increase and i can maintain my level of spending. 
i am not looking at Stock And Shares ISA as i already use a low cost broker account where i add money every month. The 50K is my security fund that i rather to have in cash. 

£50k does sounds quite high as a security fund.  If you could reduce this to £10k or £15k, then you could add £35-40k in to your mortgage in October, and therefore reduce that increase in your mortgage payment.