3yr investment/savings options
Discussion
Ok, so reading through here, there's already a number of investment threads however i'm not as clued up as many on this part of the forum and some of the terms start to get confusing 
so i'm hoping for some help.
Short summary: I've just sold my car and have around £45k. I'd like to buy a new toy for my 40th in exactly 3yrs time so want to make the most of the funds i've released. I'd be happy to lock away 35 of the 45k, with 10k needing to stay accessible in case we need it, however all of the total needs to be accessible in 3yrs.
We've got a mortgage on our main house around 55% LTV, interest rate 2.33% and also have our old house let out, with a mortgage around 65% LTV, at 2.79% interest. Both of these have an overpayment facility meaning i could simply overpay them, however I'm not overly confident in getting the money back out again in 3yrs.
Current plan is to find some savings accounts for the £10k although most of the stipulations on the decent ones paying 3-5% mean moving money around all the time and transferring some direct debits which seems hassle, so not sure if there's any alternative?
So this leaves the £35k. I haven't used any ISA allowance, nor has my wife so I assume the best way would be to do a mix of cash ISAs and Stock and Share ISAs?
I've also seen fixed rate bonds which some appear at higher rates than the ISAs but am i likely to have to pay tax on the interest generated?
Any general advice appreciated!
so i'm hoping for some help. Short summary: I've just sold my car and have around £45k. I'd like to buy a new toy for my 40th in exactly 3yrs time so want to make the most of the funds i've released. I'd be happy to lock away 35 of the 45k, with 10k needing to stay accessible in case we need it, however all of the total needs to be accessible in 3yrs.
We've got a mortgage on our main house around 55% LTV, interest rate 2.33% and also have our old house let out, with a mortgage around 65% LTV, at 2.79% interest. Both of these have an overpayment facility meaning i could simply overpay them, however I'm not overly confident in getting the money back out again in 3yrs.
Current plan is to find some savings accounts for the £10k although most of the stipulations on the decent ones paying 3-5% mean moving money around all the time and transferring some direct debits which seems hassle, so not sure if there's any alternative?
So this leaves the £35k. I haven't used any ISA allowance, nor has my wife so I assume the best way would be to do a mix of cash ISAs and Stock and Share ISAs?
I've also seen fixed rate bonds which some appear at higher rates than the ISAs but am i likely to have to pay tax on the interest generated?
Any general advice appreciated!
The Savings Champion website is always in my top visited sites, best free unbiased advice around; Have a look here:
https://savingschampion.co.uk/best-buys/personal/f...
https://savingschampion.co.uk/best-buys/personal/f...
I am not sure a stocks and shares ISA would be appropriate for such a short timescale unless you are comfortable with the risk of getting back less than you put in?
Do either of your mortgages offer an offset facility? That would be my first choice.
Just a thought - but for me with that chunk of money for a finite period - rather than faff around with multiple savings accounts, I would be tempted just to chuck the lot into premium bonds and see what happens.
Buying premium bonds is never sound financial advice but in your circumstances it might be worth thinking about. But have a look at the premium bonds thread here to see how people with five figure sums are doing.
Do either of your mortgages offer an offset facility? That would be my first choice.
Just a thought - but for me with that chunk of money for a finite period - rather than faff around with multiple savings accounts, I would be tempted just to chuck the lot into premium bonds and see what happens.
Buying premium bonds is never sound financial advice but in your circumstances it might be worth thinking about. But have a look at the premium bonds thread here to see how people with five figure sums are doing.
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