Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • fleetingmind
    • By fleetingmind 21st Feb 17, 3:25 PM
    • 366Posts
    • 52Thanks
    fleetingmind
    Where To Save 30k
    • #1
    • 21st Feb 17, 3:25 PM
    Where To Save 30k 21st Feb 17 at 3:25 PM
    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.
Page 1
    • YorkshireBoy
    • By YorkshireBoy 21st Feb 17, 5:25 PM
    • 29,326 Posts
    • 17,099 Thanks
    YorkshireBoy
    • #2
    • 21st Feb 17, 5:25 PM
    • #2
    • 21st Feb 17, 5:25 PM
    I know it has been asked a few/loads of times
    Originally posted by fleetingmind
    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
    • By jimjames 21st Feb 17, 5:54 PM
    • 11,940 Posts
    • 10,341 Thanks
    jimjames
    • #3
    • 21st Feb 17, 5:54 PM
    • #3
    • 21st Feb 17, 5:54 PM
    Rules out investments then. So it's multiple current accounts or 3 current accounts if you use Santander plus two more.
    Originally posted by YorkshireBoy
    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
    • By fleetingmind 21st Feb 17, 6:11 PM
    • 366 Posts
    • 52 Thanks
    fleetingmind
    • #4
    • 21st Feb 17, 6:11 PM
    • #4
    • 21st Feb 17, 6:11 PM
    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.
    Originally posted by YorkshireBoy
    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
    • By Pincher 21st Feb 17, 6:30 PM
    • 6,516 Posts
    • 2,489 Thanks
    Pincher
    • #5
    • 21st Feb 17, 6:30 PM
    • #5
    • 21st Feb 17, 6:30 PM
    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.
    Originally posted by fleetingmind


    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.
    Last edited by Pincher; 21-02-2017 at 6:52 PM.
    • Doshwaster
    • By Doshwaster 21st Feb 17, 6:53 PM
    • 4,677 Posts
    • 3,816 Thanks
    Doshwaster
    • #6
    • 21st Feb 17, 6:53 PM
    • #6
    • 21st Feb 17, 6:53 PM
    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
    • By Eco Miser 22nd Feb 17, 12:21 AM
    • 2,941 Posts
    • 2,725 Thanks
    Eco Miser
    • #7
    • 22nd Feb 17, 12:21 AM
    • #7
    • 22nd Feb 17, 12:21 AM
    For S&S ISA's how much risk are we talking about?
    Originally posted by fleetingmind
    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.
    Last edited by Eco Miser; 22-02-2017 at 12:24 AM.
    Eco Miser
    Saving money for well over half a century
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

3,996Posts Today

9,706Users online

Martin's Twitter