Savings Matured - What Next?

newbieni

Hi All,

I have just had a small savings pot mature, and this has left £12k in a current account. I have just become mortgage/debt free. I'm 41, earning £ 40k per year, and paying 12% into my pension, which is currently at £102,000. Two kids under four and childcare is approximately £500 per month. I want maximise my returns to put myself in a financially secure position so that I don't need to worry as much about redundancies etc. What should I do?

My setup is as follows:

NatWest Current Account £12,255.00

NatWest Regular Saver 6% £0.00

Nationwide Current £376.00

Premium Bonds £3,000.00

Vanguard S&S ISA £19,322.57 LifeStrategy® 100% Equity Fund, £200 from this year's allowance. Pay £200 per month into this.

TSB Current £3.82

Chip Cash ISA @4.06% £3,360.00 Last year's ISA allowance

Kim_13

The obvious thing would be to add £150 to the NatWest Regular Saver, and open up the Regular Savers offered by Nationwide and TSB also. You can feed the Regular Savers from the £12k, probably via an Easy Access account such as Chase to maximise your interest in the meantime.

Edit: Nationwide are currently offering existing members 5% fixed for 18 months, if you are comfortable re-fixing a lump sum. It has a 14 day funding window and a £10,000 maximum balance, but you could fix a smaller sum if you wished.

clairec666

As an existing Nationwide member I imagine you'd be eligible for their new fixed rate bond for 18 months at 5%. Or if you don't want to lock your money away, you could put more into an ISA, as your £200 a month won't use up the £20000 limit this tax year.

flaneurs_lobster

Small correction - the NatWest RS is now 5.5%.