80k interest paid monthly - best place?

free4440273

jem16 wrote:

Basically inflation is eating into your capital. £80k savings today, although still £80k in 10 years time, would not have the same value and would not buy as much.

sorry to impinge on this thread: what would the 'solution' be to this (if there is one): is it better to have the interest paid yearly? are there other risk-free investments as opposed to savings accounts that will pay high interest? thanks

dunstonh

£80k in 10 years time would have the spending power of around £56k today. So whilst it still says 80k, it isnt in real terms.

sorry to impinge on this thread: what would the 'solution' be to this (if there is one): is it better to have the interest paid yearly? are there other risk-free investments as opposed to savings accounts that will pay high interest? thanks

There are investments available with varying degrees of capital security depending on what sort of thing you are looking to be secure form.

Returns may not be much higher but it could be a case of the capital growing around 2.5% p.a. average with a 5% regular withdrawal being paid.
Whatever you do involves some risk. It's a case of picking a sensible level.

cheerfulcat

patwa wrote:

Just wondering, how does having the interest paid monthly risk the capital? Apart from the fact it won't grow, as whatever is gained through interest is immediately transferred out again, but how does that risk what is left? You're not eating into the original investment as it's only the interest that's being consumed.

Confused.

Cheers and take care.

Hussein.

The interest is the only thing keeping you from losing money! £80,000 now at 3%-ish inflation will be worth ~£59,000 in ten years' time.

what would the 'solution' be to this (if there is one): is it better to have the interest paid yearly? are there other risk-free investments as opposed to savings accounts that will pay high interest? thanks

Not to consume the interest is the only solution with cash savings. There are plenty of investments which offer capital growth and income but they all carry other risks ( btw risk is not necessarily a bad thing...)

Edit: Ooops, Snap, dh

home_alone

You have 12 replies all but one are telling you the ins and outs of saving shortfalls, look at the other requests for info on lump sums this forum and the answers they have recieved, you will find that the best return is not always the best place to put your cash (for loads of reasons) I prefer ING as its the easiest to use and you know there are no gimmicks, also monthly, I can live with that.

gary

patwa_2

Thanks. I'll pass this on to my friend.

Thanks for all the advice and explanations.

Cheers and take care.

Hussein.

Gordon_the_Moron

jem16 wrote:

Pity I can't feed a cheque into my PC!

A lot of branches of banks have cash machines you can feed cheques into though, if your Halifax doesn't you could open an account with a place that does and transfer the money to Halifax once cleared. Saves time queueing as well as the rudeness of the cashier which to be fair is probably unusual.

patwa_2

Nationwide now hve these really cool machines, that they're rolling out throughout the country, you can feed in a cheque, it scans it and then displays it on the monitor, and you then can do what you want with the money. You can also print out copies of your cheque, they have a little stripe thing on them so of course they can't be re-cashed elsewhere The machine can also read banknotes and tell you how much you've put in. A friend of mine tried to feed £1,000 into the machine at once in £10 dinominations, needless to say the machine couldn't handle quite that much, 50 notes is about the limit.

Cheers and take care.

Hussein.

jem16

Gordon_the_Moron wrote:

A lot of branches of banks have cash machines you can feed cheques into though, if your Halifax doesn't you could open an account with a place that does and transfer the money to Halifax once cleared. Saves time queueing as well as the rudeness of the cashier which to be fair is probably unusual.

Most of the Halifax/BOS branches do and I will usually do that. However this time there was no queue and she was available just as I walked in. She did apologise and said she didn't mean it quite how it sounded????

Half an hour after I got home, an Investment Rep from Edward Jones - whoever they are? - calls at the door touting for business.

Must have been my lucky day - everybody wants to look after my money for me.