What would you do with this money?

[123Yellow123]

I am being gifted £45,000 and am trying to decide what best to do with this.

Facts are:

• At uni building up significant student loan for another four years (mature student)
• Student loan will not cover full living expenses, so far have worked, but this may not be possible throughout, so need buffer accessible
• No other debt, incl. credit cards
• £20,000 in existing savings being transferred amongst debit and savings accounts and as of its introduction also into Help-to-Buy ISA
• Renting and as student no chance of getting a mortgage
• Really want to buy as soon as I finish and am again in position to get a mortgage and hopefully start a family

Would you just keep it in regular savings account? Premium bonds? Or what?

(Name changed)

I'd go premium bonds.

The level of interest you will get (c.1%) is fuck all in the grand scheme of things so I would take your chance on a win.

I'd put it in a savings account with a good interest rate so you earn some extra money

Oh right, great idea. You got any links to savings accounts with good interest rates? Cos as far as I can see 'good interest rates' were last available in 2007.

Just to clarify I have no desire to move to Manchester, whether or not there are cheap flats haha ...

I will check out the accounts mentioned. While buying a cheap property to rent out appeals (I have £65000 overall), I would just be so worried that something would go massively wrong with tenants, unexpected repairs, etc especially as would definitely be far away from where I currently live.

Any other ideas?

Haha Yello, yes that is pretty much what I have been finding.

According to the news the price of property is failing so good to wait and see what happens.

I know OP isn't interested in BTL or buying in Manchester but I just feel the need to point out to moonstar07 that manchester isn't in Lancashire so I'm guessing you're talking about further out than near Manchester city centre which is why you got the reaction to your original suggestion...because I wouldn't touch any property near Manchester city centre worth 45k with a barge pole as it will be in a god awful area.

As you say there are properties in Lancashire that will go for 45k. Personally, I wouldn't buy there either as although they'll get the rental income they aren't likely to see much capital growth in the likes of places where houses are still going at 45k.

The only issue with the 123 Santander account is that you need a regular monthly wage going into it of £2000+ (I believe)

I'd see an IFA, but you've got nothing to lose with Premium bonds.

www.rightmove.co.uk/property-for-sale/property-49280155.html

Cheap btl - perfect for students

There are so many people getting cash windfalls and inheritances on MN at the moment! I would like an elderly, unknown relative to leave me some money after a painless death and a good innings, please.

Diddly - unfortunately that is probably not the case for most people. My dad has been diagnosed with metastatic lung cancer and wanted to give my sibling and I some of his assets (the rest will stay with mum for now). So would much rather not be getting a 'windfall' given the circumstances.

Oh right, great idea. You got any links to savings accounts with good interest rates? Cos as far as I can see 'good interest rates' were last available in 2007.

YelloDraw

If you hold £40,000, your odds of winning a prize in a given year are one in 55,643. Great odds.....the prize might only be £50 too. A 1 in 55,643 chance of winning maybe £50.

Even in a 1% savings account, the money will earn £450 in a year. Better than a kick up the arse or a 1 in 55,643 chance.

Those odds are with Premium Bonds of course.

I'd put it in a savings account with a good interest rate so you earn some extra money

Such as?! They're all crap!

Sorry about the circumstances OP

Such as?! They're all crap!

We know that. But even 1% will earn her nearly £500 in a year which is better than a slim chance of winning £50 on premium bonds or a dodgy investment.

Better than a kick up the arse or a 1 in 55,643 chance

Yup but its more fun.

OP spends 10 mins sorting out one premium bond account. Done.

Or she has to muck about opening an ISA and maxing that it, and then looking for the other best paying accounts, opting those and fulfilling any requirements such as 500 in and out etc. Then she has to do a tax return and declare the interest. Phew. What a lot of work!

www.investmentsense.co.uk/best-buy-savings-accounts/

Cancel your loan and pay your student fees.

No nil read here www.moneysavingexpert.com/students/should-i-get-student-loan

So the student loan things is complicated. According to the calculators I am one of the suckers who will actually have to pay off my (at the end of degree) £55000 odd of loan taken out. BUT while I will eventually earn an ok wage, my salary for the first few years will be pretty poor. Now being older I don't want/can't delay kids till I am older and earning better, so my reasoning was to keep my savings (originally the £20000 now £65000) so I can buy ASAP and finance having a family once I finish?

I would definitely prioritise a house deposit over a student loan

Mauled I was about to say the same thing. I'm 30mins away from Manchester and houses round here are about £90K, OH is in Manchester and his 1-bed flat is £150K. My hometown (about an hour from Manc) has houses around £65K in dodgy-arsed areas and I'd rather starve on the streets than live back there.

You'd have to go far, far, FAR away into the wilds of Lancashire for £45K.

But back on thread, I'd support myself through Uni - without overspending - and whatever was left, I'd put towards a house.

Or she has to muck about opening an ISA and maxing that it, and then looking for the other best paying accounts, opting those and fulfilling any requirements such as 500 in and out etc. Then she has to do a tax return and declare the interest. Phew. What a lot of work!

Nope - just a few minutes to open an on-line account and stick the whole lot in there. If you're a basic rate tax payer (or a non tax payer) you get the first £1000 of interest tax free.