Have Money Want Safety!

midster

Hi,

I will soon be coming into a sum of 120k.
I have no idea about savings accounts and which banks have the best deals. (or what kind of account/s I want!)

Please help! what should I do with my money! - So it remains safe and gains the best interest.

thanks!

Lokolo

Have you filled up your ISA?

Will you need instant acess to the money? If so, how much?

How long would you be willing to tie the money up?

gunnaknow

You have the weekend to read up on everything, before the banks open again. Take the opportunity to read the banking and savings section at the top of the page, starting with this.

http://www.moneysavingexpert.com/savings/safe-savings

midster

I will be getting as many ISAs as I can between me and the wife..

I don't need instant access.

and I imagine I would tie it up for probably a year or more (unless I buy a house in the meantime, but would like to see prices drop further!)

I have read all the sections on this site about kinds of accounts and the 50k security. But would appreciate some advice on if I can be clever and get the best from my money.

cheers!

Baldur

midster wrote: »

I will be getting as many ISAs as I can between me and the wife..

That'll be two, if you mean Cash ISAs, at £3.600 each.

You can each use another £3,600 from 6th April next year.

midster

but this is still small amounts compared to the total sum.
where should I be putting the lump of it?

kingmonkey

Put £3600x2 into Cash ISA then divide the rest into £50,000 less expected interest and put it into the best savings account.

For more work you can save between £250 and £500 into a regular saver, but doubt you need to decide if its worth the effort.

juicyjude

If you can still get a decent rate on a fixed interest bond and dont need access to all the money that may be a way forward, as at least you will know how much interest you will earn. If you either of you are not tax payers (well just in case) it may be better to keep the accounts in sole names. If you both pay tax and you have a joint account the the protection is £100K in each institution.

gozomark

Q. Will you need instant acess to the money ?

A. I imagine I would tie it up for probably a year or more (unless I buy a house in the meantime)

you need to work out whether the answer is yes or no...

Day_Trader

It's a significant sum so I would suggest taking advice to ascertain your risk profile and aims/objectives. Putting it in the bank is secure but then the money won't do anything for you. With interest rates likely to plummet the real rate of return could well be negative (i.e inflation outstrips your return on capital) thus you are losing money by having it in cash.

gozomark

With interest rates likely to plummet the real rate of return could well be negative (i.e inflation outstrips your return on capital)

inflation is also set to plummet - RPI is likely to be negative in a years time, and CPI around 1%