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60k to invest.
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![[Deleted User]](https://us-noi.v-cdn.net/6031891/uploads/defaultavatar/nFA7H6UNOO0N5.jpg)
[Deleted User]
Posts: 0 Newbie


60K to invest for 1-2 years only,
what is the best interst rate ?
Thanks, 1st time user !? *
:eek:
what is the best interst rate ?
Thanks, 1st time user !? *


0
Comments
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you dont really want to invest it if its only for 1-2 years.
You would be better off with a savings account. Do you require access to some/all of the funds?I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Thanks for post DD,
I don't require access to the funds.
Best I can find is 5.50 with Egg, just wondered if there was better rate available??0 -
The fixed rates have been declining for several months, though you can still get 5.25% at the moment
i.e.
NOTTINGHAM BS
2 Year Fixed Rate Savings Account
So far the best fixed rates (1 or 2 year) have gone from about 6% in Sept 04 to about 5.25% at present.0 -
Thanks for that,
I was * hoping* to get something higher than 5.50.[/B]???? :eek:0 -
Its tough, because the trend in rates is down.
The only chance for a reversal is if the £ starts falling, probably coupled with rising inflation.
Now there is little evidence of such a scenerio at the moment, but 6 months down the road, who knows ?0 -
Thanks for reply deemy2004
I know I can get 5.50 (Egg and Nottingham postal a/c ) just can't find anything
higher,
even on such a large amount of money.0 -
Tony D - 5.85% gross is offered by Derbyshire Bdg Soc for their regular, monthly savings a/c into which you could trickle £1,000 per month via Standing Order.
ideas :
£3,000+ retained in an instant access savings account, for monthly transfer via SO to Derbyshire a/c (eg Coventry Bdg Soc 'NetSaver' allows SOs, and pays 4.85% gross)
£35,000 @ 5.50% gross in Nottingham Bdg Soc 'Post It' 90-day withdrawal notice account (ie up to max advisable with any one financial institution)
£22,000 to place with, perhaps, Egg...?0 -
And if you are a tax payer don't forget the standard £3000 in a cash ISA now and £3000 in a cash ISA in April. OK, it's only 10% of the total but don't overlook it.0
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Thanks, ED and Reaper, just thought (hoped) there was something, somewere higher than 5.5 on 60+K, was looking for nearer 5.75- 6%, if you see anything let me know,
T :mad: NY0 -
Tony, dont forget with an ISA you compare the ISA gross to the net for egg, if you pay tax
also beware: egg has a bonus - so thats 5.12 AER for year one and 4.75 for year 2 if rates stay the same
In net terms thats 4.1% for year 1 and 3.8% for year 2 (Basic rate TX)
and 3.1% and 2.85% (higher rate tax)
So the portion in an ISA would clearly beat that
you can get 5+% in a good ISA (I favour Halifax direct at 5.15% for ease of access)
Then use the regular savers......(as mentioned earlier)...
Then use something like EGG, although A&L at 5.35 AER is better than egg, unless you plan to move from egg after 6 months - you would then move to.....A&L
Now also dont forget that move from Egg to A&L will cost you 8 days interest and for the hassle it might be better to just go straight to A&L
If you are interested the formula is (credit to jack_pott)If the old interest rate is O,
the new rate N,
the time taken to transfer T, and
B is the time the cash has to be in the new account before you break even on the deal, then
B=T/((lnN/lnO)-1)
Note: interest is expressed as a proper ratio here, so 5.26% = 1.0526, for example.
Basically, if it was me.....the easiest thing is to stick it all at 5.35% (after the ISA and maybe a regular saver or two)....I believe rates will rise 1/4% over the next year...beyond that I dont know at all....so in the end the 5.25% fixed that was recommended by deemy might be better.
You want more? you are going to have to leave the country!0
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