Where to put 475k?

Rollinghome

allisond wrote: »

rollinghome - i'm not that old! but yes i'm sure life was much easier back then!! just more agro to get you to part with yet more money!!!!

You're right. Was back in the early nineties at least! My great-grandfather must have told me about it. :rolleyes:

whiteflag_3

withnell wrote: »

When considering this remember that UK retail savers have been reimbursed for all capital invested in collapsed banks, which makes the risk of loss pretty much zero

Yep - the horse bolted last year!

allisond

Haha! still not old enough to have been working then and be remotely interested in those sorts of things back then!!
Thanks withnell - didn't know everything invested was reimbursed! more food for thought!

gozomark

withnell wrote: »

When considering this remember that UK retail savers have been reimbursed for all capital invested in collapsed banks, which makes the risk of loss pretty much zero

thats savings/deposits, not investments that have been reimbursed.... invest money in a bank that collapses, and you can expect to lose the lot

psychic_teabag

No-one seems to have mentioned that some foreign institutions have higher guarantees. Eg ING offers 100k euros (though just saw a report today questioning ING's robustness). Also bank of Ireland, and bank of Cyprus ? Having to rely on a foreign entity for the compensation may well put you off, though.

psychic_teabag

Jonbvn wrote: »

Interest at 3% for a year will take you way over the basic tax limit.

Though if you get the interest paid monthly, you'd get half the income this tax year, and half the next.

allisond

Haven't seen that report about ING, where was that - they were one of the banks we were going to put 50k in!!

amcluesent

>We need access to the money in case we suddenly find a house to buy and need the money quickly.<

That's a big enough amount to make it worthwhile offsetting the risk of the housing market rising. An option on the Halifax index could be engineered so that you'd gain by the equivalent the % rise in house prices and loose no more than what you'd save by further house price falls (in fact, an option on house prices rises should be silly cheap).

Baldur

allisond wrote: »

Haven't seen that report about ING, where was that - they were one of the banks we were going to put 50k in!!

http://online.wsj.com/article/BT-CO-20090921-708441.html

Remember that ING isn't covered by the FSCS £50k deposit protection scheme but the Dutch €100k scheme - suggest that you read http://www.moneysavingexpert.com/savings/safe-savings and particularly http://www.moneysavingexpert.com/savings/safe-savings#foreign

allisond

amcluesent wrote: »

>We need access to the money in case we suddenly find a house to buy and need the money quickly.<

That's a big enough amount to make it worthwhile offsetting the risk of the housing market rising. An option on the Halifax index could be engineered so that you'd gain by the equivalent the % rise in house prices and loose no more than what you'd save by further house price falls (in fact, an option on house prices rises should be silly cheap).

I'm really sorry to be so thick but i have no idea what you mean. Can you explain it in laymans terms! (finance for dummies speak).