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    • Home • Advice • Common questions

    How to save for buying a flat in the next year or two?

    14 October 2022

    Question by Silke

    If I am thinking of buying a flat in the next year or two, should I keep all my savings in a normal bank account, or should I look for investment options?

    Answered by Boring Money

    Thank you for your question.

    Investments should really be long-term plans, so 5 years or more. This is because you're investing in stock markets and other volatile assets. Generally, long-term these assets have performed well (above inflation).

    However, short-term it is very unpredictable what will happen.

    Therefore, retaining your funds in cash may be the best option, albeit the returns will be low. Search around though, as some cash savings/bank accounts will be offering higher interest rates for a fixed period - if you don't require the funds for 2 years, you could look at a fixed 2-year bond. Also perhaps look at NS&I products.

    Many thanks

    Oliver

    Answered by

    Boring Money

    Here to help you understand your options and make smart money choices.

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    Important stuffHolly and the team have worked in the finance industry for many years but we are not regulated to give you personal financial advice. For every story on this website about a good investment, or something which went up by 10% or made someone £200, we could also share a story about a bad investment, something which fell in value or lost someone £200. We aim to provide general information and pointers – and btw we are totally agnostic about which providers you might pick – but if you have complex affairs, want personalised advice or need specific recommendations, please look at advice pages and see if regulated digital or traditional financial advice would be the best solution for your needs. Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
    Risk warningAs is always the case with investing, your capital is at risk. The value of your portfolio can go down as well as up and you may get back less than you invest. Tax treatment depends on your individual circumstances and may change in the future.
    Boring Money Ltd is a limited company registered in England and Wales under registration number 09459832 and we have our registered office at 10 Lower Thames Street, London, England, EC3R 6AF.
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