Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
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When I bought my house, the building company gave me 15% of the value of the property 'off' the price of the property to be paid back to them, interest free in 10 years time.
Obviously I want to be setting aside approximately £120 a month (over shooting a bit to be safe) and after the 10 years, I should have over the amount to hand back over.
It's perfectly possible that i'll sell up and move before 10years, meaning I have to pay it early but assuming I'm here for the distance - what could I do to make the most out of this cash?
I've never really saved more than a few grand before - and surely this is an opportunity to get this piling up somewhere with a decent opportunity for earning interest on it, but I'm clueless on where to start!
This is probably a silly question, but any penny I can squeeze out of this deal would be great.
Cheers!
Kyle
Lotus Elise 111R
Impreza WRX STi
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Colin
Member
Registered: 4th Apr 02
User status: Offline
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Cash Isa? Save up to £3600 a year Tax free, usually get 5 -6% interest on them.
Build it up until you've got 14k then pay off the builder?
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AndyKent
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Registered: 3rd Sep 05
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If I'm working something out I bank on an interest rate of 4.5%. Anything better than that is a bonus.
Just think that if you can manage to bank £3000 in the first year, you'll be earning £135 interest just on that which is pretty much a months payment for nothing.
If you can save really hard now, it'll pay off later and help you get into the right frame of mind.
Put away as much as you can possibly afford for the next 12 months and it'll be a good start 
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AK
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Registered: 5th Jul 00
Location: Aberdeen City
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or do nothing and just give them 14k of the 'profit' you'll be hoping to make
[Edited on 30-10-2008 by AK]
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John
Member
Registered: 30th Jun 03
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That would be 14k less to put towards a new house though.
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Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
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quote:
Originally posted by AK
or do nothing and just give them 14k of the 'profit' you'll be hoping to make
[Edited on 30-10-2008 by AK]
This is tempting - but hope is the key word here 
10 years seems such a long way away and its tempting to just hope I come across 14k between now and then  but I have to be realistic.
A high interest bank account is the best plan I think, just don't know where to start as far as the different types!
I'd love to be able to put away £3k in the first year, but it just isn't feasible unfortunately - I'm struggling enough as it is 
Lotus Elise 111R
Impreza WRX STi
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John
Member
Registered: 30th Jun 03
User status: Offline
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Just put it all into an isa?
You can put up to £3600 or whatever in per year, doesn't have to be all in one go.
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Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
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quote:
Originally posted by John
Just put it all into an isa?
You can put up to £3600 or whatever in per year, doesn't have to be all in one go.
Thats £300 a month I need to find though, which is more than double the £120 I've got "lying around".
Lotus Elise 111R
Impreza WRX STi
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John
Member
Registered: 30th Jun 03
User status: Offline
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? Put the 120 a month into the isa?
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Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
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But 120 a month doesn't get me anywhere near the £3600, and isn't that a minimum needed for an isa?
Or have I read that wrong- i'm clueless 
Lotus Elise 111R
Impreza WRX STi
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Colin
Member
Registered: 4th Apr 02
User status: Offline
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3.6 is the MAX you can invest in one financial year, you can invest anything up to that.
Open one up with whatever bank you use,, use the internet banking & stick in whatever you've got left at the end of each month.
Not sure if you can still get endownment policies?? Or something longer term with a higher interest rate. Cash Isa is a simple way to save though!!
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Colin
Member
Registered: 4th Apr 02
User status: Offline
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If you put away £120 a month for 10yrs youd have your money in time + make a few hundered interest each year!!
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Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
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Ah I get it now, sounds perfect 
I shall enquire at the bank tomorrow about an ISA
Cheers chaps
Lotus Elise 111R
Impreza WRX STi
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