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  • FIRST POST
    • patijack
    • By patijack 17th May 17, 7:24 AM
    • 18Posts
    • 7Thanks
    patijack
    Help with savings
    • #1
    • 17th May 17, 7:24 AM
    Help with savings 17th May 17 at 7:24 AM
    Hello,
    i have very recently inherited £20,000, i would like some advice as to which account to invest it in, it is all complicated to me, i dont really want to lock it away so i could'nt get it if there was an urgent need.
    What i call my house keeping account is where i have my direct debits for utilities etc, i'm happy with that.


    Also, if you have an account for example Santander and the criteria was you have to pay in £500 a month, can you pay it in then move it back in order to just keep the invested money in the account but allow you to recieve interest?

    But my £20,000 is sat doing nothing in a none paying account. Please can anyone advise?
    Last edited by patijack; 17-05-2017 at 7:30 AM. Reason: Further info request.
Page 1
    • enthusiasticsaver
    • By enthusiasticsaver 17th May 17, 8:31 AM
    • 4,009 Posts
    • 7,199 Thanks
    enthusiasticsaver
    • #2
    • 17th May 17, 8:31 AM
    • #2
    • 17th May 17, 8:31 AM
    Do you need to keep it all accessible? Are you planning to buy a house in the near future? Do you have debt or other savings and are you working?

    It is not as simple as just putting it in one account unless you are happy with interest rates below inflation.

    What is your attitude to risk and are you prepared to risk your capital going down in the short term for a higher return?

    These are all questions which need answering but if you are very cautious (not prepared to risk capital) and don't want to spread it over lots of accounts then the Santander 123 will give you 1.5% and you can move utility bills to cover the monthly feel.

    If you don't want to invest and you need it accessible and this is your only savings I would spread it over higher interest current accounts and regular savers. You can move the funding requirements between them each month. So you could open a Nationwide flex account at 5 % for the first £2500 and a TSB, Tesco, bank of Scotland and Lloyds Club account and some high rate regular savers you could quickly move £20k into accounts paying average 3% which at least covers inflation.
    Countdown to early retirement on 31.12.17 4.5 months to go.
    • Redski69
    • By Redski69 17th May 17, 9:06 AM
    • 22 Posts
    • 12 Thanks
    Redski69
    • #3
    • 17th May 17, 9:06 AM
    • #3
    • 17th May 17, 9:06 AM
    Hello,
    i have very recently inherited £20,000, i would like some advice as to which account to invest it in, it is all complicated to me, i dont really want to lock it away so i could'nt get it if there was an urgent need.
    What i call my house keeping account is where i have my direct debits for utilities etc, i'm happy with that.

    Also, if you have an account for example Santander and the criteria was you have to pay in £500 a month, can you pay it in then move it back in order to just keep the invested money in the account but allow you to recieve interest?

    But my £20,000 is sat doing nothing in a none paying account. Please can anyone advise?
    Originally posted by patijack
    For me, first place I'd put my first £20K (2017 / 18 ISA Limit) is into an Stocks & Shares ISA.

    A company like HL, Fidelity, Vanguard etc. are a good place to start looking.

    Quite easy to pick how to invest the monies if you're not confident, as most Platforms will now give you a standard Model Portfolio of assets based on your appetite for risk : ie. Low, Medium or High.

    Then, sit back and watch the assets grow (in time, you should always gain) ... remember it is 'time in the market, not timing into the market' for these type of investments - so no real risk concern for you.

    Also, the money is there if you need it in an emergency. Albeit, it'll take 5 days to hit your Bank Account once you hit the Big Red Button to nuke some of the assets into withdraw cash.

    Hope it helps, but that's what I'd do as sticking it in a Savings Account won't earn you much.

    Or buy some Premium Bonds and cross your fingers !
    • ColdIron
    • By ColdIron 17th May 17, 9:43 AM
    • 3,299 Posts
    • 3,803 Thanks
    ColdIron
    • #4
    • 17th May 17, 9:43 AM
    • #4
    • 17th May 17, 9:43 AM
    Also, if you have an account for example Santander and the criteria was you have to pay in £500 a month, can you pay it in then move it back in order to just keep the invested money in the account but allow you to receive interest?
    Originally posted by patijack
    Yes, you can move it in and straight back out again or vice versa. If you want to put it all in one place a Santander 123 will give you about 1.2% or an easy access savings account will give you about 1.0% +. You can get 2%->5% by splitting it across several accounts, see the links at the top of the page

    Banking and Saving
    How to Start Saving
    Top Savings Accounts
    • patijack
    • By patijack 17th May 17, 9:59 AM
    • 18 Posts
    • 7 Thanks
    patijack
    • #5
    • 17th May 17, 9:59 AM
    • #5
    • 17th May 17, 9:59 AM
    Thank you for your advice, i will look at these in detail.
    I would like to be able to access money in an urgent situation, just feels comfortable knowing you have a safety net.
    I don't have any debt & own my home.
    It all feels rather complicated but i am going to try to get my head around it, i guess any interest is better than none!
    Thank you again.
    • xylophone
    • By xylophone 17th May 17, 10:16 AM
    • 22,413 Posts
    • 12,926 Thanks
    xylophone
    • #6
    • 17th May 17, 10:16 AM
    • #6
    • 17th May 17, 10:16 AM
    you can move utility bills to cover the monthly feel.
    Visit to a house of ill repute?
    • xylophone
    • By xylophone 17th May 17, 10:34 AM
    • 22,413 Posts
    • 12,926 Thanks
    xylophone
    • #7
    • 17th May 17, 10:34 AM
    • #7
    • 17th May 17, 10:34 AM
    One arrangement that might suit without being too complicated:



    You might consider switching your existing "Housekeeping Account" to Santander 123 and then move the £20,000 there.

    You might then open a Nationwide Flexdirect current account and a Flexclusive monthly saver.

    Move £2,500 into the Flexdirect current account and £500 into the monthly saver.

    Set up a monthly Standing Order for £1000 from Santander to the Nationwide current account and one for £500 from Nationwide to Santander on the same day.

    Set up a Standing Order for £500 from Nationwide current account to the Nationwide Flexclusive monthly saver.

    This would give you a reasonable amount of interest on your cash while keeping it readily available.

    The Santander 123 account also offers a regular E -saver offering 5%.
    http://www.santander.co.uk/uk/savings/compare-our-range


    The 5% on the Flexdirect current account ends after a year and goes down to 1% but you can re-establish the 5% after that year has gone.

    The Flexclusive monthly saver remains available.
    Last edited by xylophone; 17-05-2017 at 11:41 AM. Reason: add link
    • Eco Miser
    • By Eco Miser 17th May 17, 11:20 AM
    • 2,941 Posts
    • 2,725 Thanks
    Eco Miser
    • #8
    • 17th May 17, 11:20 AM
    • #8
    • 17th May 17, 11:20 AM
    Set up a monthly Standing Order for £1000 from Santander to the Nationwide current account and one for £500 from Nationwide to Santander on the same day.
    Originally posted by xylophone
    Make that £500 return SO £510 to cover the monthly interest you will receive, unless you intend to actually use the account to pay for stuff.
    Eco Miser
    Saving money for well over half a century
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