Advice Needed Please: Currently have 50k in Current Account Doing Nothing Toparilal

#1
Dear MSE folk,



I find myself in a predicament where I have 55k worth of savings in a current account that is not paying nothing by way of interest. I must profess I have never been good in investing my hard earned money and that is why the amount stated has been left to stagnate in my current account. I therefore kindly ask what my best options of investing the amount that I have.



I currently find myself living with my parents (not by choice); therefore have no mortgage. I very much want to move on out and find a place of my own in the next year or so.



I have roughly 60k stashed away another account - that too is not accruing hardly, if any, interest.



I'm at a loss as to the best way to invest this money I have. Any sound advice is appreciated.



Toparilal

#2
It sounds as if you need your money next year to buy a place. 1 year is far too short a timeframe for investing. Have a look at the MSE Savings guidance at the top of the page. Something like an HTB ISA or a LISA for some of your money sounds an obvious choice, as are interest-paying current accounts and regular savers. Don't expect to get rich as interest rates are in the doldrums.

#3
Best you'll get is £85k into Atom Bank at 2% for one year (no knowing how long that offer will last) and the rest into other 1 year fixed savers have a look in here at the best rates.



That is a fixed 1 year though so you can't move house until one year and a bit from now.

#4
With £115k you'll soon run out of high interest current accounts. You could always bung £50k into Premium Bonds at ns&i, £15240 into a cash ISA this tax year, £20k next (starting April 6th) and then try high interest accounts for the last £30k.

#5
Dear folks,



Thank you all for you advice. I'm pretty dubious about putting money on premium bonds - will putting 50k in one be worth it?



The atom 2% fixed saver sounds good.

#6



Dear folks,



Thank you all for you advice. I'm pretty dubious about putting money on premium bonds - will putting 50k in one be worth it?



The atom 2% fixed saver sounds good.
Originally posted by Toparilal


There's plenty of advice on here about accounts that pay up to 5% on smaller amounts of money or with regular saver accounts. Identify those and maximise contributions to them.

In your shoes, I'd also pop up to about 25K into ratesetter rolling market at 0.2% more than the current rate. That usually gets it invested within a couple of days at about 3% to 4%. Then just watch over it and reinvest each month at your own chosen rate, not the default market rate. It's not 100% guaranteed to pay you back at the end of the month, but has never been known not to.

Premium bonds: Pah! You get robbed of the first month's potential winnings, so you should factor that in any expected rate of return.

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