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Help. Best way to save £40000

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  • Primrose
    Primrose Posts: 10,721 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've been Money Tipped!
    You don't say when you were made redundant, but if it was very recently, another option might be to check whether you could put any redundancy payment above £30,000 into your pension fund to escape tax on it. However, if that's not an option, it seems sensible to maximise your ISA allowance every year as you plan. General consensus on interest rates seems to be that within a year they will start creeping upwards, so probably not a good idea to tie too much of it up for longer periods. Possibly the Investec High 5 would suit with a minimum investment of £25K and 90 days notice as interest is the average of the 5 highest accounts and you would be able to respond fairly rapidly and move the money if interest rates rose and a better longer term option became apparent.
  • wh1sky_2
    wh1sky_2 Posts: 12 Forumite
    just bank it?
    Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam
  • Antispam
    Antispam Posts: 6,636 Forumite
    1,000 Posts Combo Breaker
    Why dont you go away spammer
    wh1sky wrote: »
    just bank it?
  • Primrose wrote: »
    You don't say when you were made redundant, but if it was very recently, another option might be to check whether you could put any redundancy payment above £30,000 into your pension fund to escape tax on it. However, if that's not an option, it seems sensible to maximise your ISA allowance every year as you plan. General consensus on interest rates seems to be that within a year they will start creeping upwards, so probably not a good idea to tie too much of it up for longer periods. Possibly the Investec High 5 would suit with a minimum investment of £25K and 90 days notice as interest is the average of the 5 highest accounts and you would be able to respond fairly rapidly and move the money if interest rates rose and a better longer term option became apparent.

    I agree with Primrose regarding the Investec High 5 account.As an added bonus, Investec will add £50 to your opening balance if you are referred by an existing member.If you decide to go down this route I would be happy to give you a referral if you send me a P.M. I would also be happy to answer any other queries you may have regarding this account.
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