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Small But Growing Deposit Fund In The Bank - Need Investment Advice

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I'm a potential FTB, 36, secure job (touch wood), and I'm saving around £700 to £900 a month for my deposit and I already have 5k in a regular savings account. With low interest rates, inflation and the prospect of further QE and economic turmoil I'm beginning to question the wisdom of keeping my money in the bank.

Where should I put my money until I decide to buy and what are the risks? I know absolutely nothing about investment so I'd be grateful if someone could anyone offer me some advice?

btw - I don't intend to buy until prices have dropped at least 20% (hopefully more) so I'll probably continue saving for another 12 - 24 months at least.

Thanks.

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My suggestion for £5k is premium bonds.

  • The interest isn't good BUT
  • You could win a million if you get lucky
  • It is safer than a bank
  • It is not in a bank (so they can't lend it to BTL)
  • Takes 2 weeks to withdraw it so the temptation to spend it is less.

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I'm a potential FTB, 36, secure job (touch wood), and I'm saving around £700 to £900 a month for my deposit and I already have 5k in a regular savings account.

I take it the £7-900/month is a recent development? 'Cos if not you have to question why the £5k isn't £100k.

I'd consider at the very least paying a monthly amount into a fund. Equities for an expectation of decent returns if you're comfortable with risk; corporate bonds if you want a decent yield at low risk. Or a mixture. That's putting your money into the real economy.

If you're prepared to take a longer view you can also look at some attractive tax saving options like VCTs (5 years minimum - limited liquidity) or EIS (3 years minimum, can be very illiquid indeed). That's supporting up-and-coming small biz. FWIW, I like VCTs and have about £60k in them, but haven't ventured into EIS - which appear most useful to the seriously rich.

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I take it the £7-900/month is a recent development? 'Cos if not you have to question why the £5k isn't £100k.

I'd consider at the very least paying a monthly amount into a fund. Equities for an expectation of decent returns if you're comfortable with risk; corporate bonds if you want a decent yield at low risk. Or a mixture. That's putting your money into the real economy.

If you're prepared to take a longer view you can also look at some attractive tax saving options like VCTs (5 years minimum - limited liquidity) or EIS (3 years minimum, can be very illiquid indeed). That's supporting up-and-coming small biz. FWIW, I like VCTs and have about £60k in them, but haven't ventured into EIS - which appear most useful to the seriously rich.

Thank for the advice.

Yes the £700-900/month is a recent development. I recently moved back to my parent's place in order to save a deposit. It's the first time in my life I've ever had cash to put aside as up until recently I've always been a wage slave with most of my income being taken up by rent and council tax etc.

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  • 334 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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