New to savings

baldysaver40

hi all I am am after some advice

I am just about to be made redundant and I am looking at saving around £50k but I am not sure th best option for this. I am looking to lock this for 12 months as I will hopefully have a job by then but wondering what the best option for saving would be?

Woodstok2000

One year is too short for stocks and shares, so you're best with a savings account.

Because of interest rate forecasts, fixed term accounts currently pay less than the best easy access savers, so there is little benefit to locking your money away.

You could get 4.5% with Chase, which would get you £2250 over the year. Depending on your tax situation and how much you might earn next year, that may mean you get taxed on the interest.

If you haven't maximised your ISA allowance this year, you could put up to £20k in an ISA now, and then another £20k after April 6th and all the interest (4.4% top provider) would be tax free.

Take a look here:

Best savings accounts: 4.5% easy access or 4.34% fixed rate

And here:

Best cash ISAs: up to 4.4% easy access, up to 4.25% fixed - MSE

Albermarle

https://forums.moneysavingexpert.com/discussion/comment/81889426#Comment_81889426

Because of interest rate forecasts, fixed term accounts currently pay less than the best easy access savers, so there is little benefit to locking your money away

However in 6 months time, easy access account interest rates will almost certainly have fallen.

So there might be some benefit in having a one year fixed rate, and there might not. You never really know. OP could do half and half.

Malchester

You could split the sum between an easy access account and a fixed term account. That is my thinking at the moment for my 2026/2027 cash ISA. The split between the two will depend on how interest rates move between now and April

jimjames

I am just about to be made redundant and I am looking at saving around £50k but I am not sure th best option for this. I am looking to lock this for 12 months as I will hopefully have a job by then but wondering what the best option for saving would be?

If you don't get a job will you need to access the money before 12 months?

baldysaver40

https://forums.moneysavingexpert.com/discussion/comment/81889616#Comment_81889616

no the plan is that I can live on the rest for 12 months whilst job hunting and would then potentially need access to this from April 27 but hopefully should be able to stretch the rest if I am careful or able to get back into work again before this time

baldysaver40

Thank you for this will have a look at what would be best