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Where to invest my house deposit savings...

mathewholt
by mathewholt 07 January 2010  |  Comments 3 comments  |  Love Love  0 loves

Hi,

I have some savings (~£16,000) which I'm going to use towards a deposit on a house later on this year; I'll be adding to this on a monthly basis.

I'm looking for somewhere to `store` the money during this period which doesn't involve too much risk (willing to accept some). I'd rather not put the money in a basic bank account as it won't earn anything.

Are there any other investment vehicles I can look at? I've filled my Cash ISA allowance and filled my Stocks & Shares ISA allowance.

I have thought about Money Market funds, but my understanding is that these are only worth investing in when interest rates start to go up.

Thanks in advance,

Mat

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Comments (3)

  • MikeGG1
    Love rating 804
    MikeGG1 posted

    Mat

    You seem to be the right candidate for an instant access account where most of the interest is a first year bonus. There are plenty of them around so have a look for yourself.

    The other suggestion is the Investec Hi 5 account which guarantees the average of the top 5 instant/short notice accounts. It is subject to 90 days notice but that should be just about ok if you give notice as soon as you think you may be starting the process of purchase. It normally takes about 3 months.

    Mike

    Posted on 07 January 2010 | Love Love  0 loves Report
  • LoveKat
    Love rating 23
    LoveKat posted

    I agree with Mike on this one. An instant access or short-term notice account might be the best thing if you want to use the money later this year.

    Using the details provided, I did a quick check in the savings search engine (top right) and there are four accounts listed which are paying 3% AER or more - with the interest to be paid monthly. They were Coventry BS Postal (instant), Cheshire BS Postal (30 day notice), Scottish Widows Internet Saver (instant) and Ulster Bank eSavings Plus (instant) accounts.

    Hope this gives you somewhere to start!

    Posted on 08 January 2010 | Love Love  0 loves Report
  • mathewholt
    Love rating 12
    mathewholt posted

    Thanks, I decided to put the savings I have `floating` around in the AA Instant Access account and transferred all my ISAs to one ISA in order to take advantage of a higher rate.

    Posted on 15 February 2010 | Love Love  0 loves Report

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