Spreading savings and beating inflation?

rathernot

Once the Icesave situation clears up I'll have around £38k to put somewhere.

I don't plan on needing to access all of it, but I might want to access some of it.

I read that in real terms, just to beat inflation you need to be making at least 6.5% pre-tax, not sure how true that is?

Anyway, I'm thinking it would be wise to put £8k somewhere paying a decent APR but with quick/instant access, and put the rest somewhere that is safe, offers a better return, but that would let me get the full amount back if I needed to, in which instance I'm happy to pay an interest penalty/forgo interest.

The £8k question has a lot of answers, Yorkshire BS, Natwest, N&P BS etc.

What about the £30k though?

Should add I have a maxed out ISA so that's not an option.

Baldur

There are still 1/2year fixed rates available at around 7%, e.g. Moneyfacts Best Buys, although the way that rates generally are falling, they may or may not be around when you have access to your funds.

isofa

for the 30K find the highest rate fixed term account you deem is safest.

Fixed rate savings listed here: http://www.moneyfacts.co.uk/savings/bestbuys/long-term-fixed-rate-bonds.aspx

And on other sites too.

There are some 2 years bonds at 7%, but most longer ones are far less.

Do watch out though, most fixed rate savings don't allow any access at all during the term, a small few allow penalty based access of interest equivalent to 120 or 180 days, check the T+Cs.

Ideally only lock money away you don't want to touch at all for the term.

rathernot

Yes that's the !!!!er, the fact that anything available now, even if opened now, may not apply when the Icesave stuff pays up.

I take the point about only locking money away that I don't want to touch at all, put it this way I don't want to touch it, I simply can't be 100% sure I won't need to, maybe 90% at best.

As much as I appreciate the Icesave situation was a unique incident, and I didn't lose any sleep as I knew it would be sorted out, something that did stick with me was that there is a lot to be said about some sort of high street presence.