Can I do any better?
Discussion
I thought I would ask the knowledgeable folks…
I have just over £37k that I need to get some interest on. I'm putting this towards buying a flat, but it's easier said than done in London at the moment….
I have a Santander current account so will probably be switching to a 123. The calculator reckons (if I transfer the max of £20k into it) I'll get £575 a year back inclusive of cash back - monthly fee already deducted
For the remaining £17k I was looking at the Virgin Money Saving to Buy Account at 1.20% gross. The calculator says I'll get £171.65 back per year nett. This could be more as I'll be transferring any excess from the current account to this account to keep the 123 account at £20k. This account has a maximum balance of £30k but I probably won't be able to save enough to reach the limit.
So total at the moment is £746 a year in interest.
Is there any way I can maximise this without tying up funds for years? The optimist in me is hoping I can pull the trigger this year on a property this year / early next so I don't really want money tucked away for 3 or 5 years.
I haven't used any ISA allowance but under the impression ISAs are more worthwhile long term? I'm probably wrong though.
Any help appreciated.
I have just over £37k that I need to get some interest on. I'm putting this towards buying a flat, but it's easier said than done in London at the moment….
I have a Santander current account so will probably be switching to a 123. The calculator reckons (if I transfer the max of £20k into it) I'll get £575 a year back inclusive of cash back - monthly fee already deducted
For the remaining £17k I was looking at the Virgin Money Saving to Buy Account at 1.20% gross. The calculator says I'll get £171.65 back per year nett. This could be more as I'll be transferring any excess from the current account to this account to keep the 123 account at £20k. This account has a maximum balance of £30k but I probably won't be able to save enough to reach the limit.
So total at the moment is £746 a year in interest.
Is there any way I can maximise this without tying up funds for years? The optimist in me is hoping I can pull the trigger this year on a property this year / early next so I don't really want money tucked away for 3 or 5 years.
I haven't used any ISA allowance but under the impression ISAs are more worthwhile long term? I'm probably wrong though.
Any help appreciated.
Have you looked into Help 2 Buy Isa's?
I'm in the same position as you (little bit less capital) but I put some of it in the H2B and then topping it up monthly with the aim of getting the full grant at the end.
I know you said you're looking to move quite quickly but the H2B could be a good option if you end up having to wait a bit. You'll earn a few thousand over the term alongside whatever else you've got saved elsewhere. As for earning more interest on the capital you've got, I don't know much except that Halifax have some good interest rate savings accounts you might be worth looking into.
Also make sure you split assets between parent banks, you're only covered up to a certain amount per group of banks so make sure you aren't going over that. If you are, split the money into different banks in different parent companies. I don't think you are there yet, I almost was last year and found it a bit scary!
Alternatively, become a loan shark!
I'm in the same position as you (little bit less capital) but I put some of it in the H2B and then topping it up monthly with the aim of getting the full grant at the end.
I know you said you're looking to move quite quickly but the H2B could be a good option if you end up having to wait a bit. You'll earn a few thousand over the term alongside whatever else you've got saved elsewhere. As for earning more interest on the capital you've got, I don't know much except that Halifax have some good interest rate savings accounts you might be worth looking into.
Also make sure you split assets between parent banks, you're only covered up to a certain amount per group of banks so make sure you aren't going over that. If you are, split the money into different banks in different parent companies. I don't think you are there yet, I almost was last year and found it a bit scary!
Alternatively, become a loan shark!
Edited by ashleyman on Monday 21st March 23:28
gangzoom said:
You and your partner should be able to open a joint 1-2-3 account, and they can also have one. That will give you £60K at 3% and easy access. Also look at the help to buy ISA products if your a first time buyer.
Good advice. Then look at ISAs but tbh they are a disappointment. gangzoom said:
You and your partner should be able to open a joint 1-2-3 account, and they can also have one. That will give you £60K at 3% and easy access. Also look at the help to buy ISA products if your a first time buyer.
We have 3. Earning around £150 a month IIRC from them in interest and cash back. Nice little monthly figure considering it was sitting doing nothing elsewhere.As above, H2B ISA is worth a look. I've got a Halifax one which pays 4% (you're limited to £1k in the first month and then £200 per month but the gvt will add 25% to that when you buy a place so it's worth it even for the small amount IMO. You'll get £850 for the first year of saving excluding the interest 
nitrodave said:
I'm a fist time buyer looking to purchase in London within the next 12 months.
Seems good until you read the conditions:
"You can use it to buy any home worth under £250,000 (or under £450,000 in London)."
You're probably an exception if you're a first time buyer spending >£450k...Seems good until you read the conditions:
"You can use it to buy any home worth under £250,000 (or under £450,000 in London)."
Open Nationwide and TSB current accounts and take the regular savings options too. That will get you 5%.
Bank of Scotland and Tesco also pay 3% without fees. BoS needs a minimum monthly but it's easy to merry go round the money from other accounts.
Also look at the PH darling.....First Direct.... Or HSBC....
Bank of Scotland and Tesco also pay 3% without fees. BoS needs a minimum monthly but it's easy to merry go round the money from other accounts.
Also look at the PH darling.....First Direct.... Or HSBC....
Thanks for the responses. I'll look into them.
I agree that £450k is plenty for a first time buy in London. Even in a nice area. Unless you're after a house or something spacious in zone 1.
Eventually I'll be looking to buy in north London zone 3 or 4. I commute by scooter now which is the best decision I've made for a while. £5 a week in fuel versus £42 a week for the train so No desperation to be in zone 1 or 2 to slash commuting costs.
Just have to see how the market goes in the next 12 months.
I agree that £450k is plenty for a first time buy in London. Even in a nice area. Unless you're after a house or something spacious in zone 1.
Eventually I'll be looking to buy in north London zone 3 or 4. I commute by scooter now which is the best decision I've made for a while. £5 a week in fuel versus £42 a week for the train so No desperation to be in zone 1 or 2 to slash commuting costs.
Just have to see how the market goes in the next 12 months.
Edited by OMNIO on Wednesday 23 March 23:20
andrewspencer200 said:
Considered Peer2Peer lending? I'm getting 10% back averaged across all my investments/loans.
Really? After all bad debts, fees and taxes? How long are your terms and at what risk with which providers? I imagine I'll get a bit closer to 10 with the upcoming ISA wrapper but if you're already getting that as an average you must be on some astonishing rates.
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