Help needed please where to put house deposit money

mummyemma

We have recently sold our house and moved into rented accommadation and I want to invest the money we have left from the sale of the house ready for when we buy somewhere new.

I wonder if anyone has any suggestions. We dont have any ISAs at the mo and wondered if its worth putting some money into one of those. I am happy for the money to have a notice period but I would like to be able to get at it if suddenly needed in a real emergency ( I have rainy day money so would use that first)

Many thanks

emma396

how much are we talking about roughly?

mummyemma

Opppps sorry that would help at the mo it stands at £10k but we would like to be able to add to that

thanks

earlgrey_3

mummyemma, cash ISAs work in just the same way as other savings accounts except that the interest is untaxed. So if the ISA rate is say 6% that's worth 7.5% in a non-ISA account if you pay 20% basic rate tax.

There are instant access accounts, notice accounts, and fixed rates. You're allowed (as from this year) to put up to £3600 each in a cash ISA per year. For you the best option is likely to be to put £7200 between you in the best paying ISA and the balance in an ordinary account.

You can withdraw money in just the same way as an ordinary account but can only pay in up to the £3600 limit each year.

See http://www.moneyfacts.co.uk/savings/bestbuys/default.aspx for ISA rates

Paul_Herring

mummyemma wrote: »

We have recently sold our house and moved into rented accommadation and I want to invest the money we have left from the sale of the house ready for when we buy somewhere new.

Invest implies equities (stocks/shares) where the minimum term you should be looking at holding your money is 5 years.

Did you mean savings? (Yes, I know it's pedantic, but with things like this you can't be too careful.)

If it's savings you're after (which I suspect you are,) look at Martin's Savings Fountain.