£32,000 to invest, but where??? HELP!

Bigguy201_2

Hey everyone, my fixed rate ISA is maturing at the end of the month which will mean I have £32,000 invested, I would usually transfer out to a better rate, but there very poor, the top rate I found was 3% fixed for a year. So wondering if anyone had any advice for me on getting a better return on my money, ideally would'nt want it tied up for longer than a year.

Any help would be gratefully recieved

D1zzy

Bigguy201 wrote: »

Hey everyone, my fixed rate ISA is maturing at the end of the month which will mean I have £32,000 invested, I would usually transfer out to a better rate, but there very poor, the top rate I found was 3% fixed for a year. So wondering if anyone had any advice for me on getting a better return on my money, ideally would'nt want it tied up for longer than a year.

Any help would be gratefully recieved

3% is the equivalent of 3.75% for a basic rate tax payer which is more than you can currently get in a 1 year fixed rate bond.

amcluesent

I'd buy BP(*). They'll be back to £6 before you can say Obamolamadingdong(*).

(*) This statement is not investment advice and should not be construed as such.

Bigguy201_2

Well I am currently with KRBS, would sinking the money into a property but a more wise choice?

steveksullivan

I'm happy to go halves with you on the very large tent which is all you'd be able to afford for that ......!!:rotfl: (unless of course you mean unit trusts or something, that are invested in property......)


Dont forget that ISAs are considered long term investments and that if you cash in the ISA you will lose it's tax free status and the benefits of those when interest rates do finally rise (as they surely will......)

Bigguy201_2

steveksullivan wrote: »

I'm happy to go halves with you on the very large tent which is all you'd be able to afford for that ......!!:rotfl: (unless of course you mean unit trusts or something, that are invested in property......)


Dont forget that ISAs are considered long term investments and that if you cash in the ISA you will lose it's tax free status and the benefits of those when interest rates do finally rise (as they surely will......)

when i said about sinking it into a propperty I was refering to a deposit

I guess there is not much to do with it

lisyloo

You're not going to get much better than 3% if you aren't prepared to tie up the money.
NSI index link certiicates are paying RPI+0.85% for a year.
Consensus forecasts are 3% for RPI so you could take a punt on that (note 12 months tie-in - you can get at money before that but won't get the interest).
BUT returns are unknown so it's a gamble.

Bigguy201_2

just last year I was getting 6.5% with loyds fixed rate isa, oh they were good days

CharlieBilly

Yes but that was last year rates are even worse now

I could get 3.5% from a cash isa in March 2010 now I lucky to get 2.75%

If you can tie it in long term you may get a better deal possibly 4% but thats long term

Bigguy201 wrote: »

just last year I was getting 6.5% with loyds fixed rate isa, oh they were good days

grubby23

lisyloo wrote: »

You're not going to get much better than 3% if you aren't prepared to tie up the money.
NSI index link certiicates are paying RPI+0.85% for a year.
Consensus forecasts are 3% for RPI so you could take a punt on that.

I am also tempted to invest in such a NSI index linked certificate. In case there is deflation, ie the RPI is negative, will I loose money or will I have at least the 0.85%? Anyone experience how easy/difficult it is to buy such a certificate? I just go to the post office, give them the debit card and they will deduct for example 10.000 pounds from my account? If I get the money out before the year deadline, I dont get interest at all; is that the only penalty or will I loose more money?

Many thanks

cloudninety

No, you won't get out less money than you invested. If you withdraw your money before one year is up, you will get back the amount you put in (i.e. no interest, as you said). If you leave it in for a year, then you will get RPI + 0.85% but if there is deflation, you will just get the 0.85%.

I have been looking at investing in N&SI ILC but haven't done so yet so don't know the answers to your other questions.