Best rate?

jumpingjack751

Hi. I have £100,000 in a HSBC a/c that is doing nothing. I am able to get it out without any penalties. I have been looking at the various options available & would welcome some advise. I am mindful of only perhaps having £50,000 max in one a/c for security. I am also not sure if I would like to tie all of it up for too long. I am thinking maybe putting half into an a/c with instant access & the other half into something more long term. At this moment in time I have no real plans for the money. At a later date I would like to use it to purchase a property for my son but I am probably going to sit on the money for at least a year or two. Any advise would be welcome.

isofa

THere are probably a million options for your money.

For ultimate saftey, split into 2 50K chunks in different banks for the FSCS protection.

You could invest some.

You could put some away in fixed rate accounts (no access until term ends).

A few months ago you could have got some 7% fixed rate accounts, nowadays you'll be very lucky to get anything decent near even 4%.

Try looking here: http://www.moneyfacts.co.uk/money/savings/1/short-term-fixed-rate-bonds.aspx

Investing in a house, the next 12 months could be a good time, after that the market is bound to start picking up, just my opinion though.

rb10

isofa wrote: »

You could put some away in fixed rate accounts (no access until term ends).

Not all fixed rate accounts have no access until the term ends. I have one which gives me one withdrawal a year and a fixed rate. It's great for me, because I don't expect to need to access the money before the year is up, but I'm not tied in to anything!

tuggy12

Coventry BS are doing 3.75% pa fixed for 1, 2, or 3 years.

Worth considering for £50k ?

mars_2

tuggy12 wrote: »

Coventry BS are doing 3.75% pa fixed for 1, 2, or 3 years.

Worth considering for £50k ?

Also worth considering is "should you fix for that long" no one knows if interest rates have bottomed yet but then we dont know either when they will go up, but if they do rise and your fixed you could lose out a lot.

tuggy12

mars wrote: »

Also worth considering is "should you fix for that long" no one knows if interest rates have bottomed yet but then we dont know either when they will go up, but if they do rise and your fixed you could lose out a lot.

I would think that a one year fix at 3.75% is a fair bet but that's for the OP to decide.

mars_2

tuggy12 wrote: »

I would think that a one year fix at 3.75% is a fair bet but that's for the OP to decide.

Quite true

Like we both said "worth cosidering" as either of us know for sure.

mike_the_bike_2

50k one year bond Coventry building society ... 3.75%

50k Birmingham Midshires one year bond (owned by HBOS) ..... 3.5%