Where's best to invest?

thepianoplayer

If I wanted to invest £20K, with of course, the intent of combining the best interest rate and the safest investment, where would be the best place/organisation to do that?

dunstonh

Firstly you wouldnt invest on that basis. You would stick to savings accounts.

As for safest, you would have to go with NS&I and index linked certificates. May not end up being the best but it is just about as safe as you can get.

OneADay

Indexed linked certificates - are they not just a safer form of savings with less interest.

I had a fixed rate bond with halifax mature today and im in a similar position to OP with 20k to stick away.

I am considering fixed rate savings again except the rates are what they are. The best I could find

12 months - 3.65 derbyshire
18 months - 3.72% firstsave
24 months - 4.20% halifax

Leaning towards the 24 months (the rate difference seems marginal if you consider the return) but its a longer period than I reallly want.

Any better option?

opinions4u

Any better option?

Half in the 1 year and half in the 2 year?

I'd move fast with Halifax. They invariably start the year by reducing rates (then panic towards the end of January because the flows of funds dry up and put the rates back up!).

Indexed linked certificates - are they not just a safer form of savings with less interest.

Less interest? Depends on the RPI. If RPI outstrips savings rates then it is both safer and a higher return.

ses6jwg

Are you looking to invest or save?

Investing implies taking on a bit more risk in the hope of greater returns compared to savings.

thepianoplayer

I'm sorry, I meant savings accounts, not investments (as in stocks & shares).

I had considered NS&I, but as you say, they don't the highest rate on the market. I had looked at the the 'Fixed Rate Web saver' from the Halifax giving 4.2% over two years.

ses6jwg

thepianoplayer wrote: »

I'm sorry, I meant savings accounts, not investments (as in stocks & shares).

I had considered NS&I, but as you say, they don't the highest rate on the market. I had looked at the the 'Fixed Rate Web saver' from the Halifax giving 4.2% over two years.

They don't at the moment, but inflation is already rearing its ugly head.

It may be worth putting at least some of your capital into index linked savings, as if you take out a 2 year bond and inflation starts spiking, the value of your cash will be eroded.

OneADay

opinions4u wrote: »

Half in the 1 year and half in the 2 year?

I'd move fast with Halifax. They invariably start the year by reducing rates (then panic towards the end of January because the flows of funds dry up and put the rates back up!).

The rates I quoted are AER/Gross - so yearly I would get that much.

The halifax one is the one I am probably going to end up doing, 15k matured today plus a bit of interest on 9 month bond. Transferring some money from another bank - so tomorrow hoping to get 20k together and go for 2 year deal.

Racked my brain and done plenty of googling, its the best I can see - ok you can get 4.25% with ICICI, Principality as well over 2 years but I already have ICICI bonds, not really keen on another bank organisation to deal with if I go to Principality (got too many bank accounts as it is). :mad: