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    • dmo84
    • By dmo84 11th May 18, 11:28 PM
    • 57Posts
    • 3Thanks
    dmo84
    Where to save now for some return (after putting deposit down on first house)
    • #1
    • 11th May 18, 11:28 PM
    Where to save now for some return (after putting deposit down on first house) 11th May 18 at 11:28 PM
    Hi all.

    I am about to put down a deposit for a house completing end of month. My savings have been split

    5.6k in help to buy ISA which I am closing down to provide to solicitors


    16000 in premium bonds.

    My savings are likely to go down to around 6k-7k once I recoup the cashback stuff and bonus, however I'll then need to earmark some money for house decorating etc .

    I am forwarding thinking of a suitable store for my savings that will give some return at least. For now I may keep it in bonds, in 2 years I think I have had 3 x 25 wins so not a massive amount. I want something that I can grow. Is there another product out there that has the (you have to wait 2-3 days to withdraw) and earn some sort of interest off that's half decent? .
Page 1
    • dmo84
    • By dmo84 11th May 18, 11:29 PM
    • 57 Posts
    • 3 Thanks
    dmo84
    • #2
    • 11th May 18, 11:29 PM
    • #2
    • 11th May 18, 11:29 PM
    My aim is to try and top up again through the year
    • ValiantSon
    • By ValiantSon 12th May 18, 10:54 AM
    • 2,489 Posts
    • 2,394 Thanks
    ValiantSon
    • #3
    • 12th May 18, 10:54 AM
    • #3
    • 12th May 18, 10:54 AM
    Interest paying bank accounts will give you the best return with easy access. Look at the page on this site. If you feel that you can lock a bit away each month, then combine with a regular saver, e.g. Nationwide FlexDirect current account, paying 5% on 2,500 for 12 months plus Nationwide regular saver paying 5% on 250 per month. Combine this with TSB Classic Plus, paying 5% on 1,500 and Tesco's current account, paying 3% on 3,000. This easily takes care of all of your savings paying above inflation.
    • charliehelyes
    • By charliehelyes 12th May 18, 11:22 AM
    • 9 Posts
    • 1 Thanks
    charliehelyes
    • #4
    • 12th May 18, 11:22 AM
    • #4
    • 12th May 18, 11:22 AM
    paying down the mortgage (if you have one) will save you more interest than you could earn in a risk free savings account. You could also consider paying more into a pension the government add alot of 'free' money to anything you pay in but you cant access it untill 55 or 57 depending on how old you are now. Or you could switch your bank account to Nationwide as suggested above their current account offers 5% interest and they als offer a monthly saver at 5%. They give you 100 for switching if recommended by a Nationwide account holder. (I am with them)
    • ValiantSon
    • By ValiantSon 12th May 18, 12:20 PM
    • 2,489 Posts
    • 2,394 Thanks
    ValiantSon
    • #5
    • 12th May 18, 12:20 PM
    • #5
    • 12th May 18, 12:20 PM
    paying down the mortgage (if you have one) will save you more interest than you could earn in a risk free savings account.
    Originally posted by charliehelyes
    Not necessarily. It depends on the mortgage interest rate and the total interest rate that can be achieved on the savings. In my example above, on a pot of 7,000 with 250 per month from income going into a regular saver, the total rate of interest earned would be 5.29%. I'd be surprised if the OP has a mortgage deal that is charging as much as that!

    You also seem to have missed the important point that keeping some cash savings is highly advisable because of the potential for unexpected bills and costs to appear, for example car or boiler repairs.

    You could also consider paying more into a pension the government add alot of 'free' money to anything you pay in but you cant access it untill 55 or 57 depending on how old you are now.
    Originally posted by charliehelyes
    If the OP doesn't already have adequate pension arrnagements then they would be well-advised to sort this out, but putting all of their cash savings into a pension would be a stupid thing to do as it would leave them with no emergency reserve!
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