Best way to invest £100K

barryd999

Hi

My wife and I are going travelling next year. We have around £100K of cash and will rent out our house whilst away. We need around £1000 per month to survive whilst abroad (in a motorhome by the way). Our house will earn us around £600 a month and at the moment the rest would be made up on interest on our £100K. I am like everyone else concerned about the drop in interest rates. We currently have E Saver accounts with the Bradford and Bingley which right now are still earning 5.8%. I need advice on how best to invest our £100K to make as much income from interest over the year or longer. I have thought about purchasing property to rent out but would rather not have the hassle. This may be a much better long term investment however. If interest rates go through the floor we will have a shortfall in our income.

Any advice appreciated
Regards
Barry

apt

Making sure you have a Nationwide Flexaccount is at least as important as finding a high rate for your savings because that is going to save you 2.5-4% on all the cash you spend abroad. You also need a credit card with no foreign exchange fees like the Nationwide or Post Office. You could use the Tesco Internet Saver as a feeder account with 1.5% bonus for a year.

eeja

apt wrote: »

Making sure you have a Nationwide Flexaccount is at least as important as finding a high rate for your savings because that is going to save you 2.5-4% on all the cash you spend abroad. You also need a credit card with no foreign exchange fees like the Nationwide or Post Office. You could use the Tesco Internet Saver as a feeder account with 1.5% bonus for a year.

Agreed...you must get a or indeed several Nationwide Debit card(s) but beware there are fees if you withdraw cash on their credit card. The only credit card with zero fees abroad is the Zero card from Abbey but beware you might be turned down for this card, however well off you are !
My experience is they reject those who have no debts/record of debts ....see Martin's article on credit cards....they want people to pay interest on their cards...not those who pay off in full each month.

dunstonh

Can you confirm if you are looking at saving or investing. You seem to hint at both

barryd999

Hi

Thanks for the tip on the Nationwide. I have never had a credit card and dont really want one. Presumably if I have Nationwide debit card I can just draw out cash on that and not pay charges? Not sure why I would need a credit card.

I would be willing to make investments but I am have no idea what in or if I would be better off just finding a good savings account. Hence the need for advice

thanks for the replies
Barry

dunstonh

Hence the need for advice

Yes, you are probably correct there. You need advice.

ManAtHome

barryd999 wrote: »

Thanks for the tip on the Nationwide. I have never had a credit card and dont really want one. Presumably if I have Nationwide debit card I can just draw out cash on that and not pay charges? Not sure why I would need a credit card.

Yes just use the NW debit card in a bank ATM - you get a decent exchange rate and no charges. Need to watch out for 'private' ATMs which charge a fee per transaction (a bit like some ATMs over here), and make sure they charge your account in local currency not Sterling (they give a lower exchange rate if charging in pounds). Think you do get a small charge in the US (1%..?) and normal charges outside the EU, so check the terms and conditions first.

NW credit card is useful for stuff like car hire and some hotels - could also be useful if you need to buy something in an emergency and don't have enough cash in the debit account.

barryd999

Thanks very much for this useful advice

musclesza

stick it into lloyds 40 barclays 20 and investec 40 - the shares - thats for the risky and possibly foolish get advice mate but spread it over shares and savings