60k to invest.

[Deleted User]

60K to invest for 1-2 years only,

what is the best interst rate ?

Thanks, 1st time user !? * :eek:

dunstonh

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?

[Deleted User]

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??

deemy2004

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.

[Deleted User]

Thanks for that,

I was * hoping* to get something higher than 5.50.[/B]???? :eek:

deemy2004

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 ?

[Deleted User]

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.

ED

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...?

Reaper

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.

[Deleted User]

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: NY

lipidicman

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.

In your case (4.75 to 5.35% taking say 8 days) its 3.5 months to make it back

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!