Monthly income from £50k investment?

miss_katrina

I really need to bump up my monthly income to meet rent and bills and i have a lump sum of £50k sitting doing nothing at the moment.

Which savings account will pay out the most interest each month from this £50k?

I dont want to risk any of this money in the current climate but i want it to work its hardest for me.

Only thing i can think of is NSandI income bonds but the returns are not great - are there any better alternatives?

jon3001

How long do you expect to draw an income from this capital for?

opinions4u

Try a comparison site.

https://www.moneysupermarket.com/savings

This will help you find the best rates.

miss_katrina

I want to draw an income from this capital at least for the forseeable future but am too worried to tie it up for too long in case something happens and i need it.
I need to earn a monthly income from this money, as much as possible

jon3001

miss_katrina wrote: »

I want to draw an income from this capital at least for the forseeable future but am too worried to tie it up for too long in case something happens and i need it.
I need to earn a monthly income from this money, as much as possible

I think you've competing aims. You can't expect the highest returns and also have security of capital and short-term access.

If you want to derive a long-term income then savings accounts are unsuitable. The capital is eroded by inflation as you spend any interest. For the long-term the capital should be invested.

Do you anticipate scenarios (not covered by insurance) where you need access to all the capital? Perhaps a smaller emergency fund (e.g. £10K) earning the best possible interest rates combined with the rest invested in an income portfolio would be suitable. Maybe you could expect to earn around 5%/year with some protection from inflation.

miss_katrina

I am totally clueless about savings and investments i'm afraid.
I think i am gonna have to make a long(ish) term investment.
Whats an income portfolio?
And will i be able to get a monthly income from it?
Are NSandI income bonds the only way to go?
Thank you Jon and anyone else who can help

jon3001

miss_katrina wrote: »

Whats an income portfolio?

It's capital invested in income-producing assets. Examples of such assets include: funds of stocks paying high, stable dividends; commercial property funds; corporate and high-yield bond funds.

The portfolio is subject to capital fluctuations. However if this is being used to produce income then it shouldn't really matter. You should set aside some of the £50K as emergency cash so you don't have to touch the invested capital during downturns and be forced to sell it cheaply.

miss_katrina wrote: »

And will i be able to get a monthly income from it?

By choosing the right funds you could get some income every month. However it won't necessarily be the same amount each month as different funds will pay out at different times of the year.

You could cope with that irregularity by setting aside a small portion of the original £50K to boost the down months and then pay it back in during the up months.

kiboy6

If you want to put your money in a savings account and ensure that you will always have an extremely competitive rate then I definitely reccomend the Investec High 5 account.
investechigh5 dot com
It's rate is always set at the average of the top 5 available rates on the market (including temporary bonus offers).

The only downside is that you have to provide 3 months notice to withdraw money without a fee.

Plus you get 50 pounds for opening the account if you list a referrer (which I would be happy to do for you as I'd get 50 pounds too).


If interested just PM me.

Aegis

kiboy6 wrote: »

If you want to put your money in a savings account and ensure that you will always have an extremely competitive rate then I definitely reccomend the Investec High 5 account.
investechigh5 dot com
It's rate is always set at the average of the top 5 available rates on the market (including temporary bonus offers).

The only downside is that you have to provide 3 months notice to withdraw money without a fee.

Plus you get 50 pounds for opening the account if you list a referrer (which I would be happy to do for you as I'd get 50 pounds too).


If interested just PM me.

The other potential downside is that Investec just had their credit rating downgraded and might represent a higher level of risk than standard high street banks. They're still covered under the compensation scheme, but it could be inconvenient if anything were to happen to them.

I imagine this is not too much to worry about at this time, but it's worth mentioning in case people don't realise.

bloaty

Hi

Have just come across this thread and found it really helpful, thank you.

We are in a similar situation having paid are mortgage off a number of years ago we have been fortunate enough to benefit from maximising our TESSA/ISA allowances for a number of years and therefore, are benefitting from as much tax free savings as possible, but what to do with any excess outside of this haven?

My oh has not been keen on taking risks which is why we have gone for the above but he has now agreed for me to look for alternative options for our savings over £7200 pa.

Should I now go to a Fin Advisor?

Would really appreciate your comments, willing to PM additional info if required.

Thanks

Bloaty

Geoffo_M

kiboy6 wrote: »

If you want to put your money in a savings account and ensure that you will always have an extremely competitive rate then I definitely reccomend the Investec High 5 account.

The only downside is that you have to provide 3 months notice to withdraw money without a fee.

Another big downside is that the minimum investment is £25,000