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What to do with 20k?

(8 Posts)
KnackeredOldWoman Mon 06-Feb-17 21:58:50

Can someone please advise me on how best to use this money? I want to get maximum value from it and realise leaving it in a bank account is not a good idea. Thank you

Costacoffeeplease Mon 06-Feb-17 22:10:39

It depends on your circumstances - do you mean best way to invest it? Do you have a mortgage/loans outstanding or work you could do to improve your property (if you already own) or is it enough as a deposit if not?

KnackeredOldWoman Mon 06-Feb-17 22:13:33

I have a mortgage so I think I will use half to pay a bit off the mortgage but I would also like to invest some, but what should I invest in? Say 5k of it for investment?

Do you think this sounds sensible?

Costacoffeeplease Mon 06-Feb-17 22:17:54

It's difficult to get any kind of return on investments at the moment, interest rates are so low. Do you have a pension?

KnackeredOldWoman Mon 06-Feb-17 22:21:46

No I'm currently SAHM

Costacoffeeplease Tue 07-Feb-17 05:27:11

If you think you'll go back to work, it might be worth kick starting a pension?

clerquin Tue 07-Feb-17 12:25:46

Yes, good idea to pay £10K off your mortgage.

Non tax payers can pay up to a maximum of £2880 per year into a pension. Basic rate tax relief will make it up to £3600 per year into your pension scheme. Really, it's a no brainer if you have any disposable income - it doesn't have to be the maximum £240 pcm, any amount is better than none! I think too many SAHPs overlook their pension requirements. Where else would you get 20% interest?

Open an ISA - currently £15,250 pa. Drip feed whatever amount you feel comfortable with - the discipline of regular saving however small is underrated. Read the money sections of some weekend broadsheets or online to help you pick you funds.

I would personally spend £500 - £1000 to pay for a treat or subsidise a family break.

BarbaraofSeville Wed 08-Feb-17 11:04:01

What is your mortgage rate? If it's 1.5% or less, it's not worth paying it off as you can put £3k in a Tesco current account which pays 3% with no other conditions and they've just announced that it will guarantee this rate for at least 2 years.

Then make Santander 123 your main current account and put the rest in there as it pays 1.5% on up to £20k and you'll get cashback on bills that will exceed the £5 monthly fee, unless your monthly outgoings are very low.

We get between £4 and £4.50 pm and we are in a band A council tax house, have no pay TV, pay £85 pm for gas and electric and our total mobile phone bills are less than £20 pm for 2 sim only contracts.

Higher council tax, pay TV, more average mobile bills will bump up the cashback considerably.

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