Which account do i choose?

johnkimber

Can anyone please help me choose which account and how much i would need to invest in order to raise £90 a month interest. I have the cash to invest from an inheritance and need the monthly interest to cover a property maintenance charge for another family member. Thanks for any help.

opinions4u

You haven't really provided much information to go off (an amount available, for example).

£22,086 with the State Bank of India and ICICI pays 5% AER fixed for 5 years which would pay approximately £90 a month in income. This won't increase though, but your maintenance charge probably will.

Nationwide pay 4.75% AER which would need around £23,049 to generate £90 a month.

You could consider buying an index-linked annuity. Indeed, an IFA might be an appropriate port of call to look at wider options available.

johnkimber

Thanks for your advice. I'll have a look at those and also speak to an advisor next week.

Jonbvn

opinions4u wrote: »

£22,086 with the State Bank of India and ICICI pays 5% AER fixed for 5 years which would pay approximately £90 a month in income. This won't increase though, but your maintenance charge probably will.

Nationwide pay 4.75% AER which would need around £23,049 to generate £90 a month.

Note that the above figures are gross (before tax). You would need to increase the amounts required by 20% if you are a basic rate tax-payer.