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1 year savings

(5 Posts)
user1472133275 Fri 26-Aug-16 14:04:49

Hi. Very new to all this, but need help to understand best thing to do.....
My husband and I have recently separated. He has bought me out of 1 of our 2 houses. Our second house which we let out needs to be left alone until Dec 2017, when we will sell. I am currently in rented accommodation, and happy to stay put out until Jan 2018 when I can buy my own house with the joint proceeds of both houses.
I have just received 62k into my current account - what do I do with it for the best, and to make sure it works well for me until I can buy in Jan 2018. Thank you.

kath6144 Sat 27-Aug-16 11:03:47

Look at higher interest accounts, I have recently had an inheritence and some has gone into a Bank of Cyprus 2yr account. They do 1yr and 18 mths too. Rates aren't stellar (& may have dropped since July) but better than high street and fixed. Tesco also have similar accounts. Both are guaranteed under UK compensation scheme

specialsubject Sat 27-Aug-16 16:13:47

You wont find any high.interest accounts, and it is a struggle to stay over real inflation which is nudging 2%. The usual answer of the santander 123 is also now hardly worth it at 1.5% from november, but still better than most savings accounts.

Suggestion - 20k in the santander , 6k in two tesco current accounts at 3%, 2.5k in nationwide current at 5%, 2k in a tsb classic plus at 5% ,the rest in a fixed rate. Set up standing orders to meet min pay in

specialsubject Sat 27-Aug-16 18:05:28

If you cant sell the house until dec 2017, you wont have the proceeds until march at the earliest, and longer if your tenants dont go. So it may be an 18 month or 2 year bond. I can see between 1.5% and 1.85% for those. Remember there is no way you can get the money back earlier.

justjuanmorebeer Tue 30-Aug-16 08:34:47

Could you buy now using your 62k to get out of rented and fix for two years when that is up and you have the capital from your rented house then reduce your mortgage down?

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