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  • FIRST POST
    • EasyAs123
    • By EasyAs123 6th Apr 18, 9:18 AM
    • 85Posts
    • 219Thanks
    EasyAs123
    What to do with 20k?
    • #1
    • 6th Apr 18, 9:18 AM
    What to do with 20k? 6th Apr 18 at 9:18 AM
    I am being gifted 20,000 to eventually be used as a house deposit (in around 3/4 years).

    I'm not in receipt of any benefits, the 'giftee' isn't in receipt of any benefits and there is no reason to believe they'll die or be bankrupt or in care in the next 7 years - other than a dated letter confirming it's a no strings attached gift, is there anything else I need to be aware of?

    I currently have a Cash LISA and a 123 lite account for regular saving - Given this is an unexpected lump sum and I'm not looking to buy for the next couple of years

    a: any suggestion about what I do with the money to get some return between now and then and

    b: What records to I need to keep for my future solicitor to prove where the money came from? (how far back do you have to prove?)

    Appreciate advice or reading material
Page 1
    • xylophone
    • By xylophone 6th Apr 18, 10:35 AM
    • 26,495 Posts
    • 15,735 Thanks
    xylophone
    • #2
    • 6th Apr 18, 10:35 AM
    • #2
    • 6th Apr 18, 10:35 AM
    b: What records to I need to keep for my future solicitor to prove where the money came from?
    Keep the letter from the donor.

    At its simplest, you could convert the LITE to a full 123 - assuming that you get full cashback on your DDs this would give you 1.5% on 20,000 - you already have the 5% regular saver?

    Or, assuming that you have never had a Nationwide Flexdirect account, you might open one, deposit 2500, cycle in/out the necessary 1000 a month and also open the Flex Regular Saver.

    You might open a TSB Plus current account, deposit 1500, cycle in/out the necessary 500 a month etc etc.

    If you have 6 monthly DDs you might open a couple of Tesco current accounts - 3000 in each, cycle in/out the necessary monthly input...
    • EasyAs123
    • By EasyAs123 6th Apr 18, 10:50 AM
    • 85 Posts
    • 219 Thanks
    EasyAs123
    • #3
    • 6th Apr 18, 10:50 AM
    • #3
    • 6th Apr 18, 10:50 AM
    Thank you.

    yes i have the 5% eSaver

    Do you know of any options to 'lock it away' for a couple of years and still make use of it?

    Happy to try moving the money around but I know I'm not the most self disciplined when it comes into not dipping.
    • xylophone
    • By xylophone 6th Apr 18, 11:18 AM
    • 26,495 Posts
    • 15,735 Thanks
    xylophone
    • #4
    • 6th Apr 18, 11:18 AM
    • #4
    • 6th Apr 18, 11:18 AM
    I suppose you might consider a limited access or lose interest type of account - Nationwide offer a 1.3% cash isa on that basis.

    https://uk.virginmoney.com/savings/find/results/#limited-access

    However, using current accounts would earn you far more interest.
    • EasyAs123
    • By EasyAs123 7th Apr 18, 1:01 AM
    • 85 Posts
    • 219 Thanks
    EasyAs123
    • #5
    • 7th Apr 18, 1:01 AM
    • #5
    • 7th Apr 18, 1:01 AM
    Apologies for the many questions but I've been thinking about what you've said and trying to get my head around multiple accounts.

    If, by the end of the year my 20k funds have been distributed as follows:

    - 4,800 in a lump in to my existing 123 account with a standing order of 1,000 to the FlexDirect account
    - 2,500 in a lump to a new FlexDirect account with a standing order of 1,000 back to the 123 account
    - 3,000 in monthly payments of 250 from the 123 to a Flex Saver account
    - 2,400 in monthly payments of 200 from the 123 to my existing eSaver account
    - 4,000 into a new 2018/19 LISA
    - 3,300 in my credit union account to pay off an old loan
    = 20,000

    I would expect end of year balances around:
    - 4,850 = Santander 123 account @ 1.5%
    - 2,620 = Nationwide FlexDirect account @ 5%
    - 3,080 = (250 * 12 )+ 5% (Nationwide flexi saver)
    - 2,465 = (200 * 12) + 5% (123 eSaver)
    - 5,000 = LISA (2018/19)
    - 7,200 = in the sock drawer (600 * 12 orphan payments from salary which were for loan and eSaver - now just into the 123?)
    = 25,215

    What do you think?

    Then this time next year I can pull another 4,000 into a LISA and actually start shopping around for a mortgage!

    You mentioned the tesco account - how many accounts can people have open and how to you avoid them closing your existing account as part of the process - can you just ask?

    I had a look at my direct debits and currently I've got 7 : Council tax, duel fuel, water, internet, credit card, store card (if I use it) and can get a cheap mobile contract (been thinking about it anyway).

    I need two of them (probably council tax and fuel) for the 123 account.

    I can shift the 5 spare DDs if there was an account that was worth it - I was wondering about the M&S account because then i could also access the saver - or am I missing something?

    Thank you again...
    Last edited by EasyAs123; 07-04-2018 at 1:07 AM.
    • xylophone
    • By xylophone 8th Apr 18, 4:14 PM
    • 26,495 Posts
    • 15,735 Thanks
    xylophone
    • #6
    • 8th Apr 18, 4:14 PM
    • #6
    • 8th Apr 18, 4:14 PM
    Provided that you have (or can get) six monthly DDs, you could consider opening two Tesco current accounts now.

    https://www.tescobank.com/current-accounts/

    It is possible to do the monthly funding by same day SO from A/c 1 to A/c 2 and A/c 2 to A/C 1.
    • Oliver1191
    • By Oliver1191 8th Apr 18, 5:38 PM
    • 56 Posts
    • 15 Thanks
    Oliver1191
    • #7
    • 8th Apr 18, 5:38 PM
    • #7
    • 8th Apr 18, 5:38 PM
    The LISA is a good move (max it out each year).

    Maybe a S&S ISA. Some on here might argue that 3/4 years is not enough growth time. However, you might change your mind in 3/4 years time - life is not predictable! Equally, your investments might grow.

    Or, if you are only looking at a low return in savings accounts, you could take a punt with premium bonds? Who know - you might get lucky! I guess it all depends if the interet you'd give up on savings accounts is worth the gamble to you...

    Good luck!
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