£32,000 to invest, but where??? HELP!

slinga

Principality do a 3.65% 3 year Fixed Interest ISA.

And the AA do 4.1% 3 year and 4.55% 5 year Fixed Rate Online savings account.

Simon11

I've got variable 3.4% with Newcastle BS which I opened 2 weeks ago, allows transfer of previous ISA monies and then just put in money into the account for 9 months out of 12 to get the top rate. I can't remember the amounts you need to put in, might be 300-500 ( but keeping to the isa limits). The bonus applys for only a year, then I'll be moving it:D Free to make withdrawls as and when

gazgeezer

5 Year = Yr1 @ 3.5, Yr2 @ 4.0, Yr3 @4.5, Yr4 @ 5.0 & YR5 @ 5.5

I've done it & it looks like the best one out there too as long as you can lock the money away for 5 Years (All TAX FREE)

bodmil

Simon11 wrote: »

I've got variable 3.4% with Newcastle BS which I opened 2 weeks ago, allows transfer of previous ISA monies and then just put in money into the account for 9 months out of 12 to get the top rate. I can't remember the amounts you need to put in, might be 300-500 ( but keeping to the isa limits). The bonus applys for only a year, then I'll be moving it:D Free to make withdrawls as and when

Is the interest calculated on the final balance then?

sleepless_saver

cloudninety wrote: »

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.

Very useful article from an NS&I person which has a worked example of the calculation they do to calculate the total interest you get.

sabretoothtigger

Use some of the money to pay off enough of your mortgage so that you can pick and choose the best 10 year fixed rate deal. Inversely this will represent the best return on your money via a reduction in your future living costs

2.7% for 5 years and 4.2% for 10 years, is that right? http://www.money.co.uk/mortgages/fixed-rate-mortgages.htm

cepheus

Anyone who isn't earning interest rates equivalent to that of inflation is losing money. That is their savings are devaluing, inflation should be the benchmark!