20k savings. Where's the best place for it?

[barker22]

Hi all

Over the last couple of years I have accumulated the above amount of savings.
I am looking to use it towards a mortgage but I've decided that I wish that to be at least 2 years away yet.

Are the best ISA/savings accounts really only 2%
Obviously with an ISA I could only use £15k anyway.

I don't really want to put it anywhere with any sort of risk.

Also I am still saving each month so that total will rise significantly over the next 2 years, so anything I could add to would be a bonus.

From what I have read up on, my best bet would be an ISA for the first £15k and then the rest in the best rate savings account I can find.
Does this sound like the best non risk plan to follow?


Thanks for any input

[33q]

I think Santander is still tops

Tax relief gets better next year too so putting all your cash into here and also getting cash back is worth a look

You can get 5% with TSB up to £2k. So if there are two of you you can double that

The min pays can be overcome by just circulating the cash with standing orders

No risk, immediate access etc

ISAs are good for the long term too....but at the moment little beats current accounts

[gregf40]

I'd stick it in a P2P lending account.

[Far Cough]

Premium Bonds - You just never know !

[sidicks]

gregf40 said:

I'd stick it in a P2P lending account.

barker22 said:

I don't really want to put it anywhere with any sort of risk.

[gregf40]

sidicks said:

gregf40 said:

I'd stick it in a P2P lending account.

barker22 said:

I don't really want to put it anywhere with any sort of risk.

To me P2P lending (through somewhere like Zopa) is as low risk as you can get whilst still getting a return.

If you want no risk you simply don't get a return - or a return so low that isn't worth the effort in moving the money in the first place.

I guess it depends what the OP's definition of 'not really wanting any risk' is - I guess mine idea of low risk would give others heart palpitations!

[davepoth]

gregf40 said:

sidicks said:

gregf40 said:

I'd stick it in a P2P lending account.

barker22 said:

I don't really want to put it anywhere with any sort of risk.

To me P2P lending (through somewhere like Zopa) is as low risk as you can get whilst still getting a return.

If you want no risk you simply don't get a return - or a return so low that isn't worth the effort in moving the money in the first place.

I guess it depends what the OP's definition of 'not really wanting any risk' is - I guess mine idea of low risk would give others heart palpitations!

While the economy is growing quite nicely, yes, it's a good investment return wise with relatively low risk. However, as soon as we have a bit of a downturn and companies start going bust it'll look a lot less clever.

It's fine as part of a diversified portfolio (and even better next year when you can bung it in an ISA) but on the basis that this is the OP's first go at investing I think interest bearing current accounts or an investment bond might be a better idea.

[Countdown]

davepoth said:

While the economy is growing quite nicely, yes, it's a good investment return wise with relatively low risk. However, as soon as we have a bit of a downturn and companies start going bust it'll look a lot less clever.

It's fine as part of a diversified portfolio (and even better next year when you can bung it in an ISA) but on the basis that this is the OP's first go at investing I think interest bearing current accounts or an investment bond might be a better idea.

Which is fair enough but returns are proportional to risk.

Ratesetter are offering IRO 3% with monthly access. I think that's a reasonable return for the level of risk involved.

[davepoth]

Countdown said:

davepoth said:

While the economy is growing quite nicely, yes, it's a good investment return wise with relatively low risk. However, as soon as we have a bit of a downturn and companies start going bust it'll look a lot less clever.

It's fine as part of a diversified portfolio (and even better next year when you can bung it in an ISA) but on the basis that this is the OP's first go at investing I think interest bearing current accounts or an investment bond might be a better idea.

Which is fair enough but returns are proportional to risk.

Ratesetter are offering IRO 3% with monthly access. I think that's a reasonable return for the level of risk involved.

Santander 123 does 3% on up to £20k and that's a savings account. Takes a bit of faffing setting up DDs and standing orders but your money is as safe as the government.

[Monty Python]

davepoth said:

Santander 123 does 3% on up to £20k and that's a savings account. Takes a bit of faffing setting up DDs and standing orders but your money is as safe as the government.

Not that the Santander account costs £2 a month (rising to £5 a month from Jan 2016), and you have to put in £500 a month and have at least 2 direct debits.

[Sir Bagalot]

Monty Python said:

davepoth said:

Santander 123 does 3% on up to £20k and that's a savings account. Takes a bit of faffing setting up DDs and standing orders but your money is as safe as the government.

Not that the Santander account costs £2 a month (rising to £5 a month from Jan 2016), and you have to put in £500 a month and have at least 2 direct debits.

£20K gets £600 interest. Fees of £60 but move your DD's that attract cash back there to offset this. My DD's more than cover the fee.