Looking to Invest £15,000

Amar1

Hi,

I'm looking to invest £15,000 which I saved myself during the recent years and feel that I want to see a more profitable return on my savings than I do of current (in a bank account). Any recommendations etc are welcome.

Amar

opinions4u

1) Use a price comparison site like https://www.moneysupermarket.com.

2) Make sure your current account is a high interest one (e.g. Lloyds, Halifax, A&L) but reduce your balance in it substantially!

3) Maximise your ISA allowance with the best rate you can get - there's a home for your first £3,600. If you're a non-taxpayer who will become a taxpayer in the future this also applies. If you will never be a taxpayer, this may be a step to miss out, unless the rates offered are better than step 4!

4) Decide how much 'emergency money' you need - perhaps 3 months pay - and put this in a high rate instant/easy access account like Egg, IF or similar.

5) Put the rest away in a fixed term bond. At the moment I'd suggest Halifax Fixed Web Saver at 7% for 6 months.

6) Review your position once a year or more often - tax year end/start is the best time as it may be the time to top up your ISA. So if your account from (5) matures in mid-April an option would then be to move £3,600 in to your ISA and find the best fixed rate account then.

If you don't regularly review the rates you are getting, and be prepared to 'tart' your money around, expect to see rate diminish fairly quickly. That's how the banks make money out of savers!

Amar1

How secure is the Halifax Web Saver?

If I open a cash Isa how often do I receive the interest on my savings?

Can I open an Isa or do I have to wait?

Thanks by the way

Amar

Lokolo

Amar1 wrote: »

How secure is the Halifax Web Saver?

Er well the money is usually put in big vaults and I haven't heard Halifax being robbed lately?

Amar1 wrote: »

If I open a cash Isa how often do I receive the interest on my savings?

Either monthly, annually on anniversary, or on tax year, depends on the account.

Amar1 wrote: »

Can I open an Isa or do I have to wait?

You can open one every tax year, if you haven't opened one since April 6th this year then yes you can.

Amar1

Cheers mate,

So do you reckon I should put the 3600 in an Isa and the remainder in the Web Saver?
Or do you have any other recommendations that you can provide?

Amar

Lokolo

No thats what you should do

That way the money gets tax free interest, and interest earnt will also be tax free to earn interest on itself.

Euxinis

Hi to all,
and what about saving abroad? In banks of emerging market countries AER of saving and investment instruments is much more attractive (up to 20-25%).
Though as evywhere else there are pros and cons worth of discussing. Smaller guaranteeing ammounts, money transfer costs...
Alex

Aegis

Inflation of local currency, currency fluctuation compared to GBP, political instability, unwillingness of emerging market governments to back foreign deposits or pay out the instrument value on the redemption date to foreign investors.

The risk of this suggestion cannot be understated, and given that the OP was looking for security of cash, this would appear to be wholly inappropriate.

Amar1

Which Isa would you recommend btw?

Amar1

I was advised by some friends of mine to not invest in a Cash ISA, the rates that Natwest give me are not that good to be honest, so any other ideas/advice?

Baldur

Amar1 wrote: »

I was advised by some friends of mine to not invest in a Cash ISA, the rates that Natwest give me are not that good to be honest, so any other ideas/advice?

Are you a taxpayer? If so, A Cash ISA is likely to achieve better interest than most ordinary savings accounts. For example, a 5% AER ISA gives you 5% interest if you leave your savings in it for a year - a 5% AER taxable savings account would only give you 4% after standard rate tax or 3% after higher rate tax.