Adice on where to put lump sum

anniea_2

Hi - I will have a lump sum to invest in about 3/4 monhts - probably around 30 thousand. Would like to put it away for at least one year - where is the best place to put it and what interest would I receive.

cocktail

anniea wrote: »

Hi - I will have a lump sum to invest in about 3/4 monhts - probably around 30 thousand. Would like to put it away for at least one year - where is the best place to put it and what interest would I receive.

premium bonds . believe me you will not miss the interest and at least you'll still have your capital at the end of one year.

Stavros_3

If you put it into an online account you can still get interest rates that will return you around £750 after tax.

johncolescarr

I generally suggest the following for a risk free savings plan:

first £3,600 in cash ISA (or multiples thereof if you have unused allowances in your family, anyone over 16 who dont use their tax free allowance, (fixed rate or instant access, whichever suits your requirements)

the rest in a top account

then, drip feed the best regular saving account from your instant access ISA

I would personally not recommend premium bonds, interest rates will not remain this low forever. This is especially true for ISAs as if you dont use it, you loose it and you will loose out on compound interest in the future

Hungerdunger

cocktail wrote: »

premium bonds . believe me you will not miss the interest and at least you'll still have your capital at the end of one year.

Well I'd certainly miss £750 - £800.

If inflation continues, you will still have your capital, but your capital won't have the same buying power it had at the beginning of the year.

Currently Premium Bonds are paying out an equivalent of 1% interest, so the chances of winning an amount equal to what you would get from a savings account are negligible.

Regarding which savings accounts to go for, things change so quickly that there is no point suggesting specific "best buys" just yet. Nearer the time start looking at comparison sites. The one I use is this one but there are several others.

G_M

Currently Premium Bonds are paying out an equivalent of 1% interest, so the chances of winning an amount equal to what you would get from a savings account are negligible.

I agree premium bonds are not a good investment (tho I have some!). Might as well go to the casino once a month and have a night out!

Regarding which savings accounts to go for, things change so quickly that there is no point suggesting specific "best buys" just yet. Nearer the time start looking at comparison sites. The one I use is this one but there are several others.

Choose an account that is guaranteed to be consistantly near the top. eg High Five.
The rate changes every week but always = the average of the top 5 accounts listed by Moneyfacts, so it's always nearly the best-paying account. This week's rate is 3.31%.
To benefit from the bonus, PM me. For more info see here.

EalingSaver

johncolescarr wrote: »

then, drip feed the best regular saving account from your instant access ISA
...
This is especially true for ISAs as if you dont use it, you loose it and you will loose out on compound interest in the future

Surely this is contradictory suggestion?? On the one hand you are saying you should use/view your ISA from a long term perspective, which is sensible, on the other hand you are suggesting using it to fund a regular saver!! Which is the same as losing it as you are taking out contributions which you can't then make up....

On the contrary, use a top rate instant access as a feeder for a regular saver, use your ISA allowance and when you need access to your cash consider this as the last to draw down (assuming you are a taxpayer).

johncolescarr

EalingSaver wrote: »

Surely this is contradictory suggestion?? On the one hand you are saying you should use/view your ISA from a long term perspective, which is sensible, on the other hand you are suggesting using it to fund a regular saver!! Which is the same as losing it as you are taking out contributions which you can't then make up....

On the contrary, use a top rate instant access as a feeder for a regular saver, use your ISA allowance and when you need access to your cash consider this as the last to draw down (assuming you are a taxpayer).

Just spotted the mistake. Of course I meant pay regular saver with ISA, a Spoonerism!!
Joking aside, thanks for pointing this out as it was very misleading