Am I wrong to keep all my money in a Current Account

scott_lithgows

barak wrote: »

From someone apparently north of the border, that seems a strange comment when the UK government [which effectively means us, the taxpayers] has had to take a controlling interest in both of the formerly great Scottish banking groups.....!

And Northern Rock and Bradford + Bingley.

Does that mean the global banking crisis was the fault of the Scots,Yorkshire folk and Newcastle United supporters?

I,ve no love for RBS or BOS but would warn anyone whose bank was being taken over by Satander to shift their cash quick.

jamesd

Given your saving habit you should really be starting to learn about investments and using your whole ISA allowance, not just the part that can be cash. If you want an easy way to start, sign up for a Hargreaves Lansdown Vantage Stocks and Share ISA account and split a £5100 deposit like this:

£1020 Blackrock UK Absolute Alpha
£1020 Invesco Perpetual Income (Accumulation units)
£1020 Newton Higher Income, Income units
£1020 Invesco Perpetual Monthly Income Plus (Accumulation units)
£1020 Aberdeen Emerging Markets

Those funds have a range of different properties, so will give you a chance to see how various types of investment can behave while you're learning more. Each of them is one of the best of their type. If you use this mixture you should expect that in a bad year the total value may drop by 30-40% or so. It'll vary up and down and over time the downward variation will gradually cease to be below the starting point. Mixtures that have lower negative potential, but also lower positive potential, can be constructed if desired. This is just an example that will make a decent learning mixture, with good long term prospects with a risk level around or a little over medium. Risk level means potential value drop of you need to sell with no notice at a down time.

I'm assuming that you're content to have the money invested for five or more years, but do want access within a week or two at any time.

Once at your ISA limit you can use the HL Fund and Share Account to invest more, if you want to. Since it seems that you're new to this I don't recommend doing that unless you want to put in another five thousand or so in five more different investments to broaden your experience. There's a lot to learn and the ISA allowance is a nice way to regulate how much you put in while you're doing the learning.

juicyjude

I too have ISAs in Invesco Perpetual monthly income plus (INC) and Invesco Perpetual income (INC). Also Threedneedle emerging markets. I have them inc as I want the income and they are yielding generally more than cash at the moment.

TheProdigalSon

Good afternoon everyone,

Thank you so much for your help thus far! I've been watching this thread with growing interest and all your help means so much to me,

Thank you

juicyjude

Youre welcome theprodigalson!

Jake'sGran

nilrem wrote: »

Have you considered putting some of the cash into fixed rate accounts? At least with a fixed rate you don't find your rate being switched to next to nowt after a few months!
You can get around 3.6% if prepared to fix for 2 years and 2.5% for one year fixes inc monthly interest.

This is what I have done using different banks and Bsocs and I recently did two of the Classic with Vantage Acs with Lloyds TSB. I came on here tonight to look for the best account with easy access after the Saffron BS have wasted a lot of time getting my details right. When I look at the list of fixed rate accounts I think it was the best thing to do for any real interest.

Must be my Scottish Dad's influence but I just could not have £77k in a current A/c.

Also, there is a broker who lists the best (and well regarded) shares for paying good dividends. Why not put £5k into this kind of scheme?