I have £100k sitting in a Lloyds Easy Saver account with 1% gross interest. It was/is my deposit and I was looking at houses, but my current job suddenly looks dodgy which is putting my house buying ambitions on hold for now.
I can't make it entirely inaccessible incase I should loose said job, but I (hopefully) have a few months runway on that issue, so shouldn't have to dip into too much. (Or I might sail into a nice new job with a big pay rise and need it as a deposit again, you never know.)
Either way, leaving it there for maybe a year obviously isn't ideal. At the same time the current instability in the global market and mutterings of an AI bubble makes me a bit nervous about just blindly doing the standard investment ISA.
Anyone got ideas on where I should stash it?
What would you do with it in my position?
Or am I just being paranoid about the market?
Thank you for any replies
UK: Where best to stash house-deposit savings for a year?
byu/Upbeat-Name-6087 inpersonalfinance
Posted by Upbeat-Name-6087
5 Comments
High yield savings account. IDK about the UK. But capital one in the US is like 4%.
Just making sure you know that this sub’s audience skews heavily US based.
There may be a more locally relevant sub.
* https://old.reddit.com/r/personalfinance/wiki/country_index
Lifetime Isa but you can only contribute 4k and then you can put the rest of your 20k allowance in a cash Isa which should be better and you have 80k to spread across Hysa or various other options. Also with the lifetime Isa note you can’t withdraw for a house purchase until a year after you’ve opened it and the maximum value of the house is 450k but the government will top you up 25% of what you put in.
Probably £20k in a cash ISA (top paying ~4.5%). Then the rest in a regular savings account- again, 4.5% rates available.
I’d be wary of investing if you might need it in a year’s time.
I’m in a sort of similar boat to you, not financial advice but what I would do in your case:
– Max out premium bonds, 50k, payouts are tax free. Withdrawal takes a few days to get money out.
– Max out 20k ISA allowance, money saving expert has an article on what the best cash ISAs accounts are, looking around 4%
– Remainder in a Monzo or revolut savings pot, interest is paid out daily. Instant access to funds.