Where to put £40k for a reasonable return?

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davilown
davilown Posts: 2,303 Forumite
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I currently 'look' after a fund of £40k that's in an account paying 0.01% Gross/EAR with Scottish Widows. Part of my responsibility is to ensure that it gets a good return at low risk (so really only a savings account) and once that is accessible within a few weeks.

Does anyone have any ideas about where would be a good place to put this money to improve the interest? It would need to be an account which the 'authorisers/signatories' could change on a semi-regular basis.

Many thanks in advance
30th June 2021 completely debt free…. Downsized, reduced working hours and living the dream.

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  • dunstonh
    dunstonh Posts: 116,379 Forumite
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    Part of my responsibility is to ensure that it gets a good return at low risk (so really only a savings account) and once that is accessible within a few weeks.

    What is your definition of low risk?

    Cash savings can be low risk for short term periods but high risk for long term periods. Investments can be built to cover most risk profiles. The shorter the term, the greater the risk. The longer the term, the lower the risk.
    It would need to be an account which the 'authorisers/signatories' could change on a semi-regular basis.

    Does this mean that its not for personal use? is it a trust, charity or club?
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • davilown
    davilown Posts: 2,303 Forumite
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    dunstonh wrote: »
    What is your definition of low risk?

    Cash savings can be low risk for short term periods but high risk for long term periods. Investments can be built to cover most risk profiles. The shorter the term, the greater the risk. The longer the term, the lower the risk.


    Does this mean that its not for personal use? is it a trust, charity or club?
    It's a club and risk would be the lowest risk possible I think, so probably just sittings in a savings account.
    Thanks for your questions :)
    30th June 2021 completely debt free…. Downsized, reduced working hours and living the dream.
  • Audaxer
    Audaxer Posts: 3,508 Forumite
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    davilown wrote: »
    It's a club and risk would be the lowest risk possible I think, so probably just sittings in a savings account.
    Thanks for your questions :)
    If it's going into a savings account in a bank covered by the Financial Services Compensation Scheme, then it would be no risk rather than low risk. The rates on savings accounts are fairly low, but I'm sure that you could find a better interest rate than you currently have by reading through the page below:
    https://www.moneysavingexpert.com/savings/savings-accounts-best-interest
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    Audaxer wrote: »
    If it's going into a savings account in a bank covered by the Financial Services Compensation Scheme, then it would be no risk rather than low risk.
    There would be no risk of capital loss (subject to the conditions of the FSCS), but there is a risk of loss of value to inflation.
    Unfortunately, the promotional rates available to individuals are not generally available to clubs.
    Eco Miser
    Saving money for well over half a century
  • xylophone
    xylophone Posts: 44,422 Forumite
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    You would need to check whether the institution would permit you to hold as secretary/treasurer for the club.

    http://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    I think those posters quoting no risk need to review their understanding of risk, fscs covered is extremely low risk, there's always risk in everything you do.
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