20k in Santander, where next?

The biggest problem his generation face is buying their own house. Why not help him buy a house, he can live in it if he chooses and rent out 2 rooms, or all the rooms.
 
Syla5 said:
Seriously just get him to open one of these help to buy ISA's, he doesn't need a mortgage to use the help to buy ISA! if he saves enough to buy outright a new build he can still use the help to buy ISA and get 25% free extra money. No savings account will give anything close to this.
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Simmz said:
Might not want a mortgage now, but taking £1200 out of 20k isn't exactly going to cause any issues. I'd open one with the max £1200, then split the £500, so £200 a month goes into that, then put the £300 elsewhere. If he stays at home for 3 years and saves the full £200 each month then came to buy a house, he would have a extra £2000 added on top which the government adds on. Obviously, might be able to make more elsewhere, but the bigger picture would be following that he would have close to 30k at 23, which in the current housing market would at least allow you to have a good 10% depending on the area of course :)

Another option, buy a house/flat then rent it out. If you choose wisely, you could easily be making more money than the mortgage costs while having someone else pay yours off.
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I think you're both getting confused with the HTB ISA and the LISA. The LISA is the newer product with a maximum yearly input of £4k which gives you a £1k bonus each year. This is way more than the HTB ISA.

He should take £4k out of this Santander account and open the Skipton LISA right away.
 
Few options, but really he should care about a mortgage. It's the biggest challenge for young people/first time buyers and to be able to get on the ladder this young is incredibly lucky and beneficial for the future.
 
He's done amazing to get 20k by 20 years old. I got to 16k by 22 in 2005. I was looking at mortgaging a house and renting it out but then I moved job which didn't work out and left and subsisted on that money for to long and had a few thousand left by the time I found work again. But I did have the fun of rebuilding it and I'm trying to bank £30k by December 2018, by that time I'll be 34 and by the sounds of it will still be a decent bank for my age.

I'm glad for him he has someone looking out for him.
 
Put it in a help to buy isa, unless he plans on living at home forever..

Does he have career goals beyond Mcdonalds? (if not save some towards business /college /uni etc..)
 
Thanks for all the suggestions, the isa seems the most popular choice!
The Craig said:
Put it in a help to buy isa, unless he plans on living at home forever..

Does he have career goals beyond Mcdonalds? (if not save some towards business /college /uni etc..)
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He's a manager now, and happy enough with that. Long term, who knows!
 
If I had 20K recently I would have definitely bought AMD shares based on their performance following Jim Kellers previous magic trick on the Athalon.
It may be a bit late, but if it follows as it did last time there is legs in them yet...
 
I'd advise him to start to learning about stocks and shares. He could play about with 5k and still not feel like he's putting too much of a dent into his savings.

As above with AMD, there's growth in them still. Ensco is one to look out for, very very low pricing at the moment, they've just acquired Atwood Oceanics, a sign of drive and ambition so to speak.
 
20K saved at 20 from working at McD's. I thought I was doing alright with half that at 22, working in IT. :( :p

I'm guessing he doesn't have rent to pay, or a car, and doesn't have any vices like alcohol or smoking etc to have saved so much. Impressive going...
 
Don’t buy shares based on a recommendation, always do your own research and understand why you’re investing.
 
Yeah, I don't know why most people don't just use something like Vanguard LifeStrategy. I would never pick individual shares anymore.
 
Everyone saying go out and live a bit, a sensible decision now will give him the rest of his life to 'live a bit' instead of desperately trying to save for a house in his 30's when he has other commitments.

I know BTL gets so much hate on here from people who cant afford to do it, but if he doesnt want a mortgage then thats what I'd be doing. BTL a house that you could see yourself living in in the future and let the tenants pay the mortgage off for you, then start another load of savings for something else.

In hindsight its what I should have done, managed to save 40k by 28 but waited so long house prices outstripped my savings so didnt get the value for money that I could have done 5 years earlier. Hindsight is everything.
 
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