Where To Save £30k

fleetingmind
fleetingmind Posts: 480 Forumite
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in Savings & investments
I know it has been asked a few/loads of times but I've currently got £30k in a Natwest ISA and I get about £1.30 interest a month!

I know I should be doing better. I have no mortgage so was wondering the best place to move it to.

I could mess around with the current accounts that offer very good rates but for only small amount.

NS&I Bond i've seen mentioned but that is changing to 0.75% in May and is taxable while their Direct ISA is similar rate tax free and you can put in the £15,240 now then the rest after the next tax window starts I assume?

For S&S ISA's how much risk are we talking about?

I would like access it fairly easily but would know in advance that I wanted to get at it.

Thanks.

Comments

  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    fleetingmind wrote: »
    I know it has been asked a few/loads of times
    Why is your question (and likely answer) different from all the others?
    but I've currently got £30k in a Natwest ISA and I get about £1.30 interest a month!

    I know I should be doing better. I have no mortgage so was wondering the best place to move it to.

    I could mess around with the current accounts that offer very good rates but for only small amount.
    I wouldn't call £20K a small amount! That's the amount you could get in Santander and enjoy £20 a month after the £5 fee...more if you have some cashback qualifying DDs...and £20 a month is 15 times what you're getting now! An extra £224 a year for opening one current account. And you still have £10K left over!
    For S&S ISA's how much risk are we talking about?
    Anywhere from losing almost all of it to doubling up or better! Do you feel lucky?
    I would like access it fairly easily but would know in advance that I wanted to get at it.
    Rules out investments then. So it's multiple current accounts or 3 current accounts if you use Santander plus two more.
  • jimjames
    jimjames Posts: 17,596 Forumite
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    YorkshireBoy wrote: »
    Rules out investments then. So it's multiple current accounts or 3 current accounts if you use Santander plus two more.
    I wouldn't necessarily say it ruled them out. You can access within a few days if needed but obviously they are intended as long term. However you don't need to put the whole £30k in the same place so it could be split between S&S ISA and current accounts for example.
    I get 10x more interest on £6k than OP gets on £30k so it's definitely worth using accounts even for "small" amounts.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • fleetingmind
    fleetingmind Posts: 480 Forumite
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    YorkshireBoy wrote: »
    Why is your question (and likely answer) different from all the others?I wouldn't call £20K a small amount! That's the amount you could get in Santander and enjoy £20 a month after the £5 fee...more if you have some cashback qualifying DDs...and £20 a month is 15 times what you're getting now! An extra £224 a year for opening one current account. And you still have £10K left over!Anywhere from losing almost all of it to doubling up or better! Do you feel lucky?Rules out investments then. So it's multiple current accounts or 3 current accounts if you use Santander plus two more.

    Thank you for your reply.
    Ha I know £20k isn't small. My understanding until I read your post was the current accounts were for a few grand at the good rates. Hence why I said small amount.
  • Pincher
    Pincher Posts: 6,552 Forumite
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    edited 21 February 2017 at 7:52PM
    fleetingmind wrote: »
    NS&I Bond i've seen mentioned but that is changing to 0.75% in May and is taxable while their Direct ISA is similar rate tax free and you can put in the £15,240 now then the rest after the next tax window starts I assume?

    For S&S ISA's how much risk are we talking about?

    I would like access it fairly easily but would know in advance that I wanted to get at it.



    Lay out what you know you CAN do, so somebody can improve on it.




    Today's HSBC Annual Report says:

    In the current uncertain environment, we plan to sustain the annual dividend in respect of the year at its current level for the foreseeable future.



    Just bought some HSBC shares, at £6.65p, with money that was making 1% in NS&I. It is going ex-dividend on 23rd February 2017.
    The next dividend is equivalent to about 2.5% on £6.65. The annual dividend of 51cents(US) is equivalent to about 41p, which is 6% on £6.65.

    So, 0.75%, or 6%?
    Feeling Greedy?
    Chicken, or Brave?

    The antelope will go to the water hole, knowing the lion is around.
    So how thirsty for return are you? ;)


    Don't forget, you can spread it around.

    E.g. £10k making 0.75%,
    £10k on 5% accounts,
    £10k on dividend shares.
  • Doshwaster
    Doshwaster Posts: 6,135 Forumite
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    The trouble with keeping all of the money in cash is that you will struggle to keep up with inflation so your savings will likely lose value in real terms.

    I'd always want around 3 months income in cash in case of financial emergencies such as losing your job but beyond that it is worth opening yourself to the stock market to get better returns - either some nice boring high yield companies or some even more boring corporate bonds and then reinvest the income.
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    edited 22 February 2017 at 1:24AM
    fleetingmind wrote: »
    For S&S ISA's how much risk are we talking about?
    How much risk do you want?
    You could put the whole lot into a single company, which then crashes and burns, losing you the lot.
    You could spread it over lots of companies - you'd have to be really unlucky for them all to crash.
    Better, you could put it into a collective investment (or several), where your money and that of thousands of other investors are put into thousands of companies all over the world, the good results should more than compensate for the bad ones; but even so, when there's a global panic the valuation could halve, before rebounding to a new high.
    The real risk is in when this will next happen, and how long it will take to rebound.

    Monevator is the oldest investing blog in the UK and well worth a read if you are considering investing. Like any blog, it has its authors' biases, but does a good job of explaining the basics.

    Accessibility: you can sell and have money in your bank account within a week, but you should plan on keeping it invested for at least five years, preferably 10 or more.
    Eco Miser
    Saving money for well over half a century
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