Mortgage Free - What to do with £1250 monthly savings ?

Nitrous

Hi All,

I'm newly mortgage free & it feels fantastic !! :rotfl:

Now I need to decide what to do with my £1250 monthly mortgage payments, obviously I want to save the best way possible, I was thinking of:

Opening an ISA for me & my wife taking care of £7,200 in cash maybe another £7200 in shares (is this safe? my dealing with shares so far have been rubbish !!)

Then I was going to look for the best paying savings account, like the account below:

Kaupthing Edge Savings
6.50% / 6.31% Variable Rate £1,000 / £1,000,000 Monthly None

The first £7,500 I want to use for home improvements, then I want to save hard, trying to bag the FULL £15,000 a yr, what would be the best way to save & make my money work for me safely ?

Should I open a mixture of accounts ?

Could I make use of my 3 yr old sons savings accounts ?

Advice appreciated...

Kind Regards

Nitrous

Primrose

If I were in your position I'd certainly use up yours and your wife's ISA allowance in Cash ISAs. If you're concerned about picking individual shares, why not opt for pooled funds (unit trusts) for the remainder of your ISA allowance and let the Fund Managers take the responsibility. There is lots of information in the Research section of the Hargreaves Lansdown website but bear in mind that if you opt for stock market investments you should be thinking of a minimum of five years.

Kaupthing and Icesave seem to be offering pretty good rates at the moment. The other option might be to opt for One Year Savings Bonds which are offered by a variety of building societies.

While you're saving up your first £7500 it will give you time to do some research on the stock market and unit trusts, if that is the way you decide you want to go later.

[Deleted User]

Double post:

http://forums.moneysavingexpert.com/showthread.html?p=10923963&posted=1#post10923963

Nitrous

Thanks for your reply Primrose, I will be looking into unit trusts !!

Sorry for the double post it didn't want to post my thread then did it twice !!