Where is the best place to put £20K ?

dtc333

I am looking for the best savings plan to put £20,000 into for a four year period. Bank interest rates are terrible .. they have advised me that I should look at Bonds or National Savings & Investment products as the bank doesn't really deal in investments of less than 5 years ... Any suggestions ?

Mols

Hi dtc333

Aldermore have a four year bond at 4.25% at http://www.aldermore.co.uk/savings/fixed-rate.aspx

apt

However, you could get 4% on three Lloyds Vantage accounts without tying your money in.

Fulham_Mark

I think you can get 4% if you add £7000 only, then add £1000 each month and immediately take it out again.

Its a good rate if you can do this. But is the hassle of transferrign money in and out worth £30 or so in extra interest?

Funkyfreddy

Fulham_Mark wrote: »

I think you can get 4% if you add £7000 only, then add £1000 each month and immediately take it out again.

4% on balances of between £5-£7k providing £1k is deposited each month.

Split it 3 ways; 2 x £7k + 1 x £6K

You don't need to "add" £1k to each account but just move £1k between each one.

Add the interest from No1 & No2 to No3 each month to earn your 4% on that interest.

Fulham_Mark wrote: »

Its a good rate if you can do this. But is the hassle of transferrign money in and out worth £30 or so in extra interest?

Not much hassle to set up a standing order. Only thing you need to do manually is move the interest.

Guess it depends on individual perception of "Hassle" vs "Gain".

FF.