£40,000 to save - but not sure where to put it?

Zekko

Hi all.

This is my first post on these forums. I've been a long time lurker, reading other peoples threads, and wondered if any of you guys could also offer me some advise on my savings?

I currently have around £40,000 sitting in a savings account earning a mere 1% interest (pretty dire I know - but hey-ho, could be worse I guess). Obviously I would like to move this to somewhere with higher returns, but not sure where?

# I have used up my £5100 cash ISA allowance for this financial year.
# I also have 2 Regular Savings accounts with Nationwide and Santander where I filter my income into each month up to their limits (£1,000/month, and £250/month respectively).

Santander's 1 year Tracker Bond seems quite attractive @ 3%, (always 2.5% above BOE base rate), but I wouldn't want to keep the money locked up for any longer than 1 year.

I am also not too keen on putting the money anywhere which is high risk, such as shares.

Any advise would be appreciated. Thanks.

MrOrchard

Split it between a super low risk S&S ISA and some medium to higher risk ones - savings can rarely beat these sorts of things. Obviously this doesn't account for all of it!

Bullfighter

I know that this is a contentious issue, however you might want to think about insuring the value of your savings. I have done this (with a similar amount of savings) by hedging my cash (which is losing money vs inflation) in gold and silver. 5-10k worth of gold & silver bullion is a good insurance policy. Sure the price might collapse, but then so might banks/sovereign nations/fiat currency.

10 years ago this would have been a laughable statement, but can anyone honestly say that banks, nations and currencies are now safe?