What to do with 20k?

[KnackeredOldWoman]

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

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?

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?

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

No I'm currently SAHM

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

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.

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.