short term savings

utajoker · 15 Dec 2018 at 21:42

Hi

Currently have £7k (and growing about £1k per month) sat in a basic savings account as we are waiting for our new house to be completed in March. This money is to buy carpets, furniture etc.

Is it worth putting the money into something to make some interest for a few months or will it be such a small amount it is not worth it?

I am not really clued up on Isa's etc. apart from put it all on black (or red or green) is there anything worth looking at for 3 months ish?

asim18 · 15 Dec 2018 at 21:44

1K a month growing savings is very good.

Screw anyone else, why let them make cash off of your cash. Heck don't even keep it in the bank as they are making money off of your real cash by giving it away as loans for poor people, store it as cash under mattress.

utajoker · 15 Dec 2018 at 21:45

asim18 said:
1K a month growing savings is very good.

its only growing that quickly as we sold our old place and are currently shacked up with her parents while we wait

Jumper118 · 15 Dec 2018 at 21:50

bitcoin for sure

Randomface74 · 15 Dec 2018 at 21:51

Just bosh it in a standard savings account.
To get a better return you take more risk, but you're gonna need the money soon so it's not worth it.

tom_e · 15 Dec 2018 at 21:52

asim18 said:
Screw anyone else, why let them make cash off of your cash. Heck don't even keep it in the bank as they are making money off of your real cash by giving it away as loans for poor people, store it as cash under mattress.

Good interest rates if you've got a generous mattress from what I've heard :rolleyes:

It's almost like banks are a business and therefore trying to turn a profit. Either way under £85k and it's covered by the FSCS on the off chance they hand all their money to poor people.

asim18 · 15 Dec 2018 at 21:54

That's an excellent position to be in. Stay at her parents as long as you can tbh. It's the best way to save up to buy your own house. Too many people kick themselves out too early these days, then they become slaves to renting or an unnecessarily large mortgage.

asim18 · 15 Dec 2018 at 21:59

tom_e said:
Good interest rates if you've got a generous mattress from what I've heard

It's almost like banks are a business and therefore trying to turn a profit. Either way under £85k and it's covered by the FSCS on the off chance they hand all their money to poor people.

Yeah not everyone is that feeble.

"hey let me have all your money and I'll give you a little bit extra back every month, but then I'll run off with millions in bonuses" interest is false economy.

tom_e · 15 Dec 2018 at 22:05

asim18 said:
Yeah not everyone is that feeble.

"hey let me have all your money and I'll give you a little bit extra back every month, but then I'll run off with millions in bonuses" interest is false economy.

What? It's money for nothing.

Burnsy2023 · 15 Dec 2018 at 22:11

Generally, high interest is paid on riskier loans or locking in for longer periods. It looks like you don't want to do either of those things.

asim18 · 15 Dec 2018 at 22:13

tom_e said:
What? It's money for nothing.

Interest is not money for nothing.

Interest is money for money. That's why it's bad to generate more money just because you have some money and it hurts the economy, sends the country into debt, etc.

Minusorange · 15 Dec 2018 at 22:40

asim18 said:
Heck don't even keep it in the bank as they are making money off of your real cash by giving it away as loans for poor people

That's not how I've been led to believe how it works

They effectively magic money from thin air with the promise you'll pay them back + interest, they don't actually loan money they have at hand, it's why the housing market crashed in 08 because banks were loaning money they didn't have to people who also didn't have it to pay it back

asim18 · 15 Dec 2018 at 22:44

Minusorange said:
That's not how I've been led to believe how it works

They effectively magic money from thin air with the promise you'll pay them back + interest, they don't actually loan money they have at hand, it's why the housing market crashed in 08 because banks were loaning money they didn't have to people who also didn't have it to pay it back

Yes you are right. Internally the real money is funnelled away, and the generation of "fake" money is what keeps the real money coming in, so it can be endlessly funnelled away.

Teh_Next · 15 Dec 2018 at 22:48

asim18 said:
1K a month growing savings is very good.

Screw anyone else, why let them make cash off of your cash. Heck don't even keep it in the bank as they are making money off of your real cash by giving it away as loans for poor people, store it as cash under mattress.

Banks aren't poor people, else I misunderstand your term "poor people" as I always thought banks were lending money interbank as much as anything else.

Shure · 16 Dec 2018 at 08:16

For that short time frame I'll probably be going against the grain here but I would put it all in premium bonds.
The amount of interest you'll get on 3 months is neither here nor there. I'd rather take the chance on winning something a bit larger.

wesimmo · 16 Dec 2018 at 08:36

Interest rates are typically a function of risk and length of time you tie the money up for.

Given the short term until you need it, and that you don't want to risk it I wouldn't have thought, I'd just stick it in savings account and use the interest for a bottle of champagne when you move in.

wesimmo · 16 Dec 2018 at 08:37

Shure said:
For that short time frame I'll probably be going against the grain here but I would put it all in premium bonds.
The amount of interest you'll get on 3 months is neither here nor there. I'd rather take the chance on winning something a bit larger.

Somehow missed this, not a bad shout to be fair.

seaviewuk · 16 Dec 2018 at 21:19

Shure said:
For that short time frame I'll probably be going against the grain here but I would put it all in premium bonds.
The amount of interest you'll get on 3 months is neither here nor there. I'd rather take the chance on winning something a bit larger.

If he puts it into Premium Bonds in December, the money has to be held in his PB account for a full calendar month before becoming eligible for entering the monthly draw. So the first draw he would be eligible for is February.

But I guess that still gives him February and March draws, to get lucky

dowie · 16 Dec 2018 at 21:33

I'd just go to moneysaving expert and find the highest interest rate instant access savings or ISA account and dump it in there.

re: premium bonds - I don't know what the expected return is these days but it certainly used to be lower than savings accounts, you could just as well buy some lottery tickets instead

BUDFORCE · 16 Dec 2018 at 21:43

Just put it in a cash ISA, whatever one your current bank has to make it easy, they all pay pretty much bugger all anyway.

Not the worst thing to have open to keep any small savings in, in the long run anyway.

That being said, the amount you'll make on you £9k or whatever until march is barely worth the effort of opening it.