Where to put 20k?

[LooseyInTheSky]

I've saved £20k.

It's sitting in a Santander instant saver account that is the part 2 to my current account. It's essentially a second pocket - I transfer in and take out instantly as required.

I don't actually need to take out. I've never taken out. The Instant saver gives me basically no interest, no more than a couple of quid every 6 months or so - I'd like that to change.

Any ideas on what to do with this money?

Put it into my bank account

I'd like to know too!

do you need access? you can get just over 2% if you fix for two years. still much lower than real inflation, but with carney in charge all savers are screwed.

there are lower rates for instant access.

Get a stocks and shares ISA. Your capital is at risk, but gains have beaten regular savings accounts 3x in recent decades.

I'm extremely risk averse so for me it's NS&I every time - 1 year growth bonds about 1.5%. I have family getting 3% on their shares though - I just don't feel confident about it.

What's this money for?
If it's a deposit for a house, put it in a LISA. If you'll spend it on something else wjthin the next 10 years, put most of it in a 2 year bond and some in an accessible cash ISA for emergencies.
If you have no plans to spend it in the next 10 years put it in a stocks and shares ISA (money is at risk unlike the options above but in the long run likely to make more money).

Premium bonds? No interest but you may get the occasional win

Do you have children?

There’s a brilliant instant access children’s account with nationwide

I would put as much as you can in premium bonds. Unlike the lottery your 'stake' always remains yours and is cashable at any point.
I know so many people who have put money they don't need instant access to doing this.. especially those just retired with a lump sum. One of my mums friends (my godmother) wins almost every month. Not always large amounts but between £50 & £200 .. and last year one win of a £1000. A substantial improvement on the rates available in traditional accounts.

There is a risk but it's only that you don't win. Worth a gamble with half surely ?

Pays 2.5 for 12 months

maybe pop over to the Tarot Card thread, and ask which horse will win the 17:30 at Goodwood today?

I have no suggestions for high interest accounts or potential but in the mean time you should speak to Santander. I have Santander 123 account.
You just need 2 direct debits and £500 going into it. I just move money inbetween 2 accounts. That gives 1.5% per annum which is £300. Minus £5 a month account charge. So still £240 interest.
It used to be double the interest and they scrapped it. Grrrr.
You are allowed 2 accounts so I have two. Which is £480 a year in interest.. which isn’t huge but better than nothing.

Ifailed

See a financial adviser who will do a attitude to risk assessment on you and will likely recommend a stocks and shares isa in line with your risk appetite.

I would put it in an ISA.

Premium bonds

Have you considered premium bonds?

Do you have a mortgage? You can normally overpay 10% of the outstanding per year without penalty. Even though mortgage interest rates are low at the moment it's still typically a better return than putting it in the bank.

Hargreaves Landsdowns Stocks and Shares ISA. You can choose a v low rick one. Its a great website.

Premium bonds used to be good but they cut the payout a few years back and we ended up selling as we hardly ever won

Get yourself over to moneysavingexpert.com. Everyone suggesting premium bonds, they've even got a calculator to calculate what your average returns would be, and how it compares to ISAs etc.

Santander 123 as Bumble says above but if you pay your bills out of the account, you'll get cashback that should exceed the £5 monthly fee. We get about £4-4.50 pm cashback each month and our bills are below average (band A council tax, no pay TV, less than £20 pm in mobile phone costs).

I've won £1025 in Premium Bonds (with £10k in there) since February. Appreciate this is very lucky though.

Thanks all. I'm 26, no children yet, no property, right at the start of life-building so to speak.

I'm hoping the 20k can be my deposit on a shared ownership property in London in the next two years or so.

Will make an appointment with by bank and see what they recommend.

Also have a look on moneysupermarket, so you have an idea of what's available compared with what Santander are offering you. If you're not needing the money for at least a couple of years, there are one year fixed savings accounts paying around 2% which will be as good a start as any.

Then you can reassess after a year, with respect to buying timescales and interest rates.