Investing for a monthly income.

Swannette

Hi, I've never used a forum before so please forgive me if I am posting this message in the wrong place. I am a part-time working mum and am really confused and unsure as to where to invest a lump sum of money. I must have a monthy income from this investment, I do have a mortgage and I know I should use the money to reduce it, but until I can go to work full time, approx 1 year from now (when my youngest son is at secondary school) I need the monthly interest to subsidize my low pay. At the moment the money (£70k) is in a Nationwide 1 Year Bond due to mature in 4 weeks time. I am worried about re-investing it because of the £50k maximum cover if an instution goes under. My mortgage and bank account is also with Nationwide. They have sent me a letter about re-investing the money, quoting different rates for Tracker Bonds, Loyalty Bonds etc. I'm really worried about what's best to do. This money is all I have and I need it to give the best possible monthly return for myself and my two sons. Any comments or advice would be greatly appreciated. Thanks, Swannette

evenasus

Sorry I can't give advice on investing but I do know that you shouldn't have your mortgage & savings with the same bank/building society.

I'm sure someone with much greater knowledge than myself will soon post information for you.

Swannette

Thanks for your advice, I hope you're right about others being able to help me too. Regards, Swannette.

juicyjude

Hiya Swanette, It may be worth looking at Bradford and Bingley's website. They show fixed rate bonds one 6 month one giving monthly interest is 5.50 gross, dont know whether it is still there though in this day and age. May be worth taking a gander if you pardon the put Swanette!!!;)

Swannette

Many Thanks Juicyjude, I'll certainly check out the B & B 6 monthly savings option. Loved the pun by the way!!!!! :rotfl:

opinions4u

Do you have £5k "liquid" at the moment?

The 5.8% Bank of Scotland IASA Reward (5.8%, £5k minimum) is fixed for a year and allows additional deposits. It also has a monthly income option.

I think you'd need to open it quickly though, as these sorts of rates don't look sustainable.

www.bankofscotland.co.uk/savings

cos69

I am sure you will get a lot of advise here, but its important do your own research as I am sure you will. If you have £70k, then do not put it all with one institution. Your looking to maybe pay off some of your mortgage in about a years time, so my suggestion would be to divide the money into 3 lots. Put £7k into in an instant access account so you have money for emergencies, then split the remainder between 2 fixed rate bonds. To be very safe, ensure all 3 accounts are with UK companies fully covered by the financial Services Compensation scheme

At the moment, a lot of fixed rate bonds have been withdrawn and a much can happen between now and when you get your money in 4 weeks time as far as deciding the best place for your money.

Good luck with your choices, but also check out listings such as
http://www.thisismoney.co.uk/saving-and-banking/best-savings-rate/article.html?in_article_id=394164&in_page_id=50

evenasus

opinions4u wrote: »

Do you have £5k "liquid" at the moment?

The 5.8% Bank of Scotland IASA Reward (5.8%, £5k minimum) is fixed for a year and allows additional deposits. It also has a monthly income option.

I think you'd need to open it quickly though, as these sorts of rates don't look sustainable.

www.bankofscotland.co.uk/savings

I found out about this account on another thread this morning. Just been and opened, well actioned the process of opening one online a few minutes ago. Seems a good deal at the moment.

Swannette

opinions4u wrote: »

Do you have £5k "liquid" at the moment?

The 5.8% Bank of Scotland IASA Reward (5.8%, £5k minimum) is fixed for a year and allows additional deposits. It also has a monthly income option.

I think you'd need to open it quickly though, as these sorts of rates don't look sustainable.

www.bankofscotland.co.uk/savings

Thanks for the information but unfortunately I don't have the £5k at the mo. I will get the £70k on 14th Dec.

Swannette

Thanks for your info, but the £70k is all I have and I can't move it until 14th Dec. From Swannette.

Swannette

I would appreciate any one's advice on where to invest this £70k for the best monthly income. I will have to split it up because of the £50k insurance per institution. As of tomorrow this money will be in my bank and I really need it to work for me and my kids as soon as possible, we will be relying on this interest to subsidise my low income.

Thanks, Swannette