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Could you help?

Hello,

This is my first ever post here so please forgive me if it's in the wrong place.

The situation is this; I am selling my house, the sale is due to complete on Wednesday this week (touch wood!).

I will have, after paying off mortgage, around 50k. I am in rented accommodation at the moment.

My problem is where to put it, I will need to get back on the property ladder in around 2-3 years as where I am now will no longer be an option.

I have never had any money as such before so never had to worry about this kind of thing! I have had a good look around the site and there is so much great information, but to be honest I am a still a bit baffled.

I can put away an extra £700 pm.

My ideas so far are; put some into premium bonds, rest into savings account (I don't have a saving's account as yet)
or
all into savings account, but which one?

If it was you, where would you put it?

Any advice and tips are very much appreciated as this is a new world for me.

Comments

  • Aegis
    Aegis Posts: 5,695 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    If it were me...

    Maximum into cash ISAs (£3k now, £3600 in April, £3600 more the following April, etc, doubled up if you have a partner)

    £15k into Index Linked Savings Certificates (tax free and guaranteed to rise above RPI... Currently return over 5% tax free each year)

    Some of the rest I'd drop into fixed term accounts at high rates, and the rest I would drop into a high interest savings account.

    I'd avoid Premium Bonds like the plague.

    Of course, all this is just what I'd do and may not suit your situation. As always, do your own research carefully before making a decision, and don't feel afraid to ask questions!

    Welcome to the forum, by the way!
    I am a Chartered Financial Planner
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
  • Thank you Aegis, I will look into the things you have suggested, I have a form here for an ISA at Nationwide, so thats a start.

    So are premium bonds not all that good? Some people I know rave about them but I have never had anything to put in them so not taken too much notice.
  • Aegis
    Aegis Posts: 5,695 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    curlytop77 wrote: »
    Thank you Aegis, I will look into the things you have suggested, I have a form here for an ISA at Nationwide, so thats a start.

    Unless it can top 6.1% AER I would suggest you look at some of the other options available... Kent Reliance are very good, I gather, and a few others have some excellent rates. If you look in the "Best mini cash ISAs" thread in the ISA sub-forum you should see all of the current rates posted right at the start, which is kept very up to date.
    So are premium bonds not all that good? Some people I know rave about them but I have never had anything to put in them so not taken too much notice.

    You'll probably struggle to keep pace with inflation with Premium Bonds... They're nowhere near as good as people think they are!
    I am a Chartered Financial Planner
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
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