Saving / House Deposit

gfriel2104

Hi folks,

I've recently sold off my house and have roughly £35,000 in the bank now. I'll be aiming for a small place to buy next and will want to spend around £15,000 for my deposit. I have no idea how long it'll take for me to find the right house so I could be sitting on it for a while.

I'm struggling a little bit to decide where I want to keep my money. Right now it's in a standard Bank of Scotland current account, but I'd like to put it in the best place to earn interest whilst also allowing me to take it out for a deposit when that time comes.

Does anyone have any ideas or can point me in the right direction?

Thanks.

wmb194

gfriel2104 said:

Hi folks,

I've recently sold off my house and have roughly £35,000 in the bank now. I'll be aiming for a small place to buy next and will want to spend around £15,000 for my deposit. I have no idea how long it'll take for me to find the right house so I could be sitting on it for a while.

I'm struggling a little bit to decide where I want to keep my money. Right now it's in a standard Bank of Scotland current account, but I'd like to put it in the best place to earn interest whilst also allowing me to take it out for a deposit when that time comes.

Does anyone have any ideas or can point me in the right direction?

Thanks.

https://moneyfactscompare.co.uk/savings-accounts/

Andyjflet

You also need to consider tax, as you'll pay the rate on top of your salary potentially taking you into another bracket. make sure you read up about taxation on savings. I moved mine into an CASH ISA (tax free at £20k pa) with Shawbrook over two years and left the rest in Premium Bonds, also Tax free

gfriel2104

wmb194 said:

gfriel2104 said:

Hi folks,

I've recently sold off my house and have roughly £35,000 in the bank now. I'll be aiming for a small place to buy next and will want to spend around £15,000 for my deposit. I have no idea how long it'll take for me to find the right house so I could be sitting on it for a while.

I'm struggling a little bit to decide where I want to keep my money. Right now it's in a standard Bank of Scotland current account, but I'd like to put it in the best place to earn interest whilst also allowing me to take it out for a deposit when that time comes.

Does anyone have any ideas or can point me in the right direction?

Thanks.

https://moneyfactscompare.co.uk/savings-accounts/

Thanks, really useful site.

gfriel2104

Andyjflet said:

You also need to consider tax, as you'll pay the rate on top of your salary potentially taking you into another bracket. make sure you read up about taxation on savings. I moved mine into an CASH ISA (tax free at £20k pa) with Shawbrook over two years and left the rest in Premium Bonds, also Tax free

Having a look at the other site above, I'm thinking Trading 212 Cash ISA for £20,000. It means I have access, tax-free, compounded interest paid daily. I could then keep the remaining £15,000 elsewhere and accessible for a deposit Seems like what I'm looking for but maybe some considerations I'm missing. What's your thoughts?

Also if you / someone else have any good resources into taxation on savings that'd be much appreciated. I'm going to start looking into it now as I've only just received the sale income today.

Much appreciated.

Albermarle

Also if you / someone else have any good resources into taxation on savings that'd be much appreciated

Tax on savings interest: How much tax you pay - GOV.UK (www.gov.uk)

Also on the forum there are regular questions/threads about tax on savings

gfriel2104

Albermarle said:

Also if you / someone else have any good resources into taxation on savings that'd be much appreciated

Tax on savings interest: How much tax you pay - GOV.UK (www.gov.uk)

Also on the forum there are regular questions/threads about tax on savings

Found a few of them quickly but appreciate you editing in the link anyways. Thanks bud.

gfriel2104

Changed my plan slightly.

I'm thinking of this as my strategy;

Stocks and Shares Lifetime ISA - £4,000
Stocks and Shares ISA - £4,000
Cash ISA (No penalties for withdrawing) - £12,000
Current Account (For Deposit / House Renovations) - £12,000

My thoughts with this are I'm covering the very short term (£12,000 in Current Account), short and emergency term (£12,000), medium-long term (£4,000 ISA) and long term (£4,000 LISA).

Anything I'm not considering or any glaring weaknesses you identify? I've done a fair bit of research into each so I should know the basic conditions but just wanted anyone to let me know if I'm going in the wrong direction.

ColdIron

gfriel2104 said:

Current Account (For Deposit / House Renovations) - £12,000

Why keep so much in a low (or no) interest account?

You could get up to 5.20% in an easy/instant access account

https://moneyfactscompare.co.uk/savings-accounts/easy-access-savings-accounts/?quick-links-first=false&product-favorites-first=false

gfriel2104

ColdIron said:

gfriel2104 said:

Current Account (For Deposit / House Renovations) - £12,000

Why keep so much in a low (or no) interest account?

You could get up to 5.20% in an easy/instant access account

https://moneyfactscompare.co.uk/savings-accounts/easy-access-savings-accounts/?quick-links-first=false&product-favorites-first=false

The house deposit will hopefully be coming in the immediate future, as would the renovations. Would you recommend I move them into a higher interest rate account regardless of this just in case I have delays in buying my next house?

ColdIron

Sure, why not? It would be just as easy to access

What do you mean by 'immediate'? Earlier you said:

I have no idea how long it'll take for me to find the right house so I could be sitting on it for a while.

And you won't complete all your renovations in a couple of weeks after moving in

But it depends upon what value you place on earning some interest against none at all