What to do with £20,000

[LosingGrip]

Following on from my thread below. What is the best thing to do with £20,000 to keep before using as a deposit? Needs to be low risk (I basically don't want to lose anything) and need to have access fairly quickly if I need to (not instant but maybe a week or two?). I'm thinking premium bonds, but is there anything else?

[g40steve]

Premium Bonds, the monthly wait for prizes.

[BoRED S2upid]

Take the 3.25% from starling rather than wait for premium bond prizes.

[nunpuncher]

About 10 years back I put 20k in premium bonds and left it there for about 5 years. In that time it only made about £250. I don't bother with premium bonds at all now.

[fat80b]

If you really don't want to lose any, I'd just go with the best savings rate you can. The Premium bonds are good but you need to be aware that it takes a month to deposit it (i.e. next month's draw) which is not ideal if its only there for a short period.

I'm in the Santander 2.75% one, but there are now several to choose from at a similar level.

[rustyuk]

fat80b said:

If you really don't want to lose any, I'd just go with the best savings rate you can. The Premium bonds are good but you need to be aware that it takes a month to deposit it (i.e. next month's draw) which is not ideal if its only there for a short period.

I'm in the Santander 2.75% one, but there are now several to choose from at a similar level.

After tax you will earn about £300. Buy some premium bonds.

[LosingGrip]

fat80b said:

If you really don't want to lose any, I'd just go with the best savings rate you can. The Premium bonds are good but you need to be aware that it takes a month to deposit it (i.e. next month's draw) which is not ideal if its only there for a short period.

I'm in the Santander 2.75% one, but there are now several to choose from at a similar level.

If it was longer term I’d look at something a bit riskier, but it’s hopefully only for six months at the most. Which from my limited knowledge of stocks/shares it’s isn’t long enough.

It really depends on one when I sell my flat, and how quickly I can find somewhere else to move to.

[T1547]

Zopa 31 day notice savings account pays 3.06% or instant access is 2.86%

[OldSkoolRS]

rustyuk said:

fat80b said:

If you really don't want to lose any, I'd just go with the best savings rate you can. The Premium bonds are good but you need to be aware that it takes a month to deposit it (i.e. next month's draw) which is not ideal if its only there for a short period.

I'm in the Santander 2.75% one, but there are now several to choose from at a similar level.

After tax you will earn about £300. Buy some premium bonds.

After tax over six months the OP would earn £220 (which probably means they won't pay any tax unless they are an additional rate tax payer so they'd get £276 without tax).

My return on PBs this last year was 1% (and the same for my late Dad's PBs that we were allowed to leave in for up to a year after he died).

Of course, always the chance of a big win, but equally you could win nothing/very little.

[Simpo Two]

rustyuk said:

fat80b said:

If you really don't want to lose any, I'd just go with the best savings rate you can. The Premium bonds are good but you need to be aware that it takes a month to deposit it (i.e. next month's draw) which is not ideal if its only there for a short period.

I'm in the Santander 2.75% one, but there are now several to choose from at a similar level.

After tax you will earn about £300. Buy some premium bonds.

First £1,000 interest a year is tax free, unless Rishi has culled it.

Or cash ISA of course.

[LosingGrip]

Bit of a bump...

Change of plans. Fairly sure I'm going to pull out of buying the flat and move in with my new partner once my flat has sold. I've basically moved in anyway and only pop back to my parents when she's working and I'm working to save on the commute. Seems silly to buy this flat that I'll hardly spend anytime in (and will be stretching myself to afford it).

I'll have around £15,000 to £17,500 (had to reduce the price). I've never had this much 'savings' before and I tend to spunk it away rather quickly...

I've got a couple of debts. Around £7,500 on a bike loan and £4,000 on an interest free credit card. Loan is around 3.5% I think. I'll check later.

Girlfriend has a rented place which suits her and her kid, whilst I'd like to buy again I'm in no rush. So the plan is to stay where she is (rent is cheap and its not a bad area...plus local to her kids school and her parents who help a lot with her son).

What do I do with my savings? I can't decide if I should pay everything off straight away...but then have not much of my savings left. I can be a bit more risky now and can keep it away for longer. Somewhere I can earn more than the interest of my loan seems a good.

I'm not too fussed about the credit card whilst its interest free. I've got another 18 months or so to get that paid off.

[LordFlathead]

Flip a few cars. Well this is PH.

[LosingGrip]

LordFlathead said:

Flip a few cars. Well this is PH.

Ha! I'd love to be able to do something like that...but my car history is a bit st! I'm good at buying a lemon...

[RoadToad84]

There are various options for longer term savings - fixed saving bonds or ISAs paying above 4%

Personally I'd clear the loan, chuck the balance into as high interest savings as possible, then work on clearing the credit card before the 0% period ends, while adding to savings as much as possible.

[Salted_Peanut]

RoadToad84 said:

I'd clear the loan, chuck the balance into as high interest savings as possible, then work on clearing the credit card before the 0% period ends, while adding to savings as much as possible.

^ this.

[PM3]

By paying the loan off ( I'll guess you are playing around 200 a month on that ) then every month pay down the 4K interest free loan with that amount ( about 200 ) it will be also clear in 18 months.
You'll be to the good the ~ 10K you put in savings plus interest , no bike loan ( and own bike) plus no card debt. A nice short term goal in anyone's book

[Edible Roadkill]

As said above pay the loan off & stick the surplus into either PB’s or a savings account.

Then work on the 0% card.

[Mr_Megalomaniac]

Salted_Peanut said:

RoadToad84 said:

I'd clear the loan, chuck the balance into as high interest savings as possible, then work on clearing the credit card before the 0% period ends, while adding to savings as much as possible.

^ this.

Agreed on this.

[LosingGrip]

Thanks all .

I think the general consensus is the same which is good!

Think I’ll go with paying the loan off or as much as I can leaving £10,000 left. That should then give me enough of a deposit if something comes up sooner.