110k - Monthly Income Required

John_G66

Hi,

About to sell are house and take out 110k in equity, we will be moving into rented untill the right house comes along. Could someone give me some advice on the best options to invest this cash. I will require a monthly income from the cash to put towards the rent, if someone could give some hard figures then that would be of great use.

Thanks in advance !...........

dunstonh

Do you want to invest or save?

Investing would give greater options and potentially better returns but have varying degrees of risk. Saving would just be a deposit account.

tomstickland

Savings account at 5% PA gross would be 4% PA net.
110,000x4/100 = £4,400 PA, or £370 pcm.

I'd be inclined to save a proportion of it and invest a proportion of it if it was mine. It's up to you to select a risk-opportunity balance.

Stonk

All the below figures assume you are a standard rate taxpayer. If you are not a taxpayer, tell your bank(s), fill in a form, and add 25% to all the numbers. If you are a higher rate taxpayer, you need to set aside 25% of the numbers to give to HM Govt via your tax return.

Here are a few examples of monthly income savings accounts. Other people will be able to advise on non-risk-free investments.

ING Direct pays 4.41% gross, so you'll receive £10.63 per day, which averages £323.40 per month.

Bradford & Bingley's eSavings account pays 4.75%, giving you £11.45 per day, averaging £348.33 per month.

ICICI Bank pays 5.03%, giving £12.13 per day, averaging £368.87 per month.

I can thorouoghly recommend the first two, although ING's rate has dropped perhaps a bit too much recently. I also thoroughly recommend you well and truly avoid ICICI.

Preferably spread the money around a bit rather than all in one place. This will shield you from losing out too badly if one institution unilaterally lowers their rates. (It's also a good idea from a deposit protection viewpoint, although if I start going on about that again the thread will be hijacked.)

John_G66

Many thanks for those bits of advice,

Cheers...

Stompa

The Cahoot Bonus Account:

http://www.cahoot.co.uk/cahoot_products/cahoot_savings/savings_easy_access.html

will pay 5.25% for the first 6 months, though you're limited to 100k max.

Stompa