Savings advice?

greendec

Hi,
I'm soon to be made redundant (early next month).. I'll receive a few quid in severance payments. I intend to pay off all my debts, spend some on home improvements (new kitchen etc), have a holiday (!) and then stick the rest (circa 30k) in the bank.. There's a fairly good chance i'll have a another job to go to straight away, but if this doesn't happen I may need to have some of the money to live off (easily accessed), say a maximum of 10k worst case until I get something else.

Any advice on where I should put the money (20k locked away long term and 10k `easy access')..?


Cheers, Greendec

Pssst

Buy shares.concentrate on the essentials i.e food and utilities.

Rafter

Buying shares for a short term deposit you may need access to quickly is reckless, even if they are good value.

If you do get a job, then is time to think about investing, but if you need easy access just look for the best buy instant access rate you can get WITH A UK BANK OR BUILDING SOCIETY FULLY COVERED BY THE FSCS GUARANTEE.

If you really don't need the £20k and can 'lock it away' you might get a better rate going for a savings bond of some kind.

If you are willing to take some risk, then an FTSE tracker fund might do well if the economy starts to pick up but might do really badly as well.

Slightly less risky might be bonds of companies you think will do OK during a recesssion. Someone like Tesco who is unlikely to suffer too much as people still need to buy food.

R.

springtime_2

Do not go for the savings bonds unless you fully understand what it involves, I ended up losing almost £7k when my 5yr bond matured last November. My bank's financial advisor didn't fully explain that the 'growth bonus' was what he constantly referred to as the 'Final Bonus' So when he said when bonuses once on couldn't be removed, I had a shock to find when the 5 years was up, it was £7k less than the previous year.
They also deal in stocks and shares so in the current climate I would say be VERY careful.
I would go for a fixed rate bond if you see a good rate and just a year at a time in the hope the rate may rise by the next year. At least you know full well what you will have back at the end.