I have £13,000 to invest, what can you suggest.

mitkx

Hi,

I use these forums alot for advice, and some posters are absolutely spot on, so many thanks in advance for that.

I am currently a single 26 year old male, a part qualified Accountant studying a CIMA qualification and my salary is based upon me passing exams. I currently live at home with parents but I would like to have enough for a deposit for a home/flat as soon as possible, outgrown home, need my own place, dont want to waste money renting and I am targeting 1.5 years from now to make it happen.

I previously interested a sum of cash into ICICI Bank (an Indian bank in the UK) Hi Save Non early access account, but before the 3 year maturity, they put it straight back into my current account and I am not really happy with their service, so I refuse to go back with them. The sum at present is £13,000 that I would like to re-invest elsewhere as soon as possible, at the present time, I am not looking for a risky proposition as I am saving for my future.

Can you please offer me some advice on typical routes, scenarios, places where I can invest.

Regards

psychic_teabag

See this thread for someone with 10k in a similar position :
https://forums.moneysavingexpert.com/discussion/comment/39829928#Comment_39829928

Jake'sGran

If you had another £1000 you could open two Classic+Vantage accounts with Lloyds TSB. The interest rate is 4% but you need to have £1k going into each account every month.

I have three of these accounts and the bank helped me to set up a revolving standing order so that each A/c appears to have the necessary £1k going into it monthly. Anything over £7k gets a miserly interest rate. Have a look at their web page. It's a bit weird to read as, when you click for the next page, it seems to be blank so you have to scroll down for the info.

Yorkshire BS are paying 3.5% for one year but only on a max of £1200. Northern Rock are paying 3.15% for a year up to large sums.

I don't think you want shares do you? But some blue chips are paying good dividends.

Finally, you could look at the funds that are doing very well after looking at the ratings on good websites such as digital look, iii, and Trustnet for example.

mitkx

Thanks guys for your advice.

Jakesgran - I have a little more to call upon, so shares may very well be an interesting proposition, what blue chip firms do you make that are having a good moment.

psychic_teabag

13k is already enough for two Lloyds accounts - they pay 4% on balances of 5k-7k

Sparks33

Jake'sGran wrote: »

If you had another £1000 you could open two Classic+Vantage accounts with Lloyds TSB. The interest rate is 4% but you need to have £1k going into each account every month.

I have three of these accounts and the bank helped me to set up a revolving standing order so that each A/c appears to have the necessary £1k going into it monthly. Anything over £7k gets a miserly interest rate. Have a look at their web page. It's a bit weird to read as, when you click for the next page, it seems to be blank so you have to scroll down for the info.

.

Hi, I too have recently opened 3 classic vantage accounts, but was told by the branch that the £1000 which needs to be paid in monthly has to come from an 'external source'.
Can someone please confirm that they have received the 4% interest when funding the 3 vantage accounts from each other?
Thanks...

Stochasticity

Sparks33 wrote: »

Hi, I too have recently opened 3 classic vantage accounts, but was told by the branch that the £1000 which needs to be paid in monthly has to come from an 'external source'.
Can someone please confirm that they have received the 4% interest when funding the 3 vantage accounts from each other?
Thanks...

Can confirm that, yes, absolutely no need for external funding.

A > B > C > A, three £1k standing orders for the exact same day, money moves instantly so balances are unaffected and there's no loss of interest in the process.

Jake'sGran

mitkx wrote: »

Thanks guys for your advice.

Jakesgran - I have a little more to call upon, so shares may very well be an interesting proposition, what blue chip firms do you make that are having a good moment.

Sorry to be so late responding. I've just had a look at my stockbrokers site (The Share Centre). The following companies are all rated as a "strong buy" by a selection of other brokers:

Babcock International
B.G
AVIVA
Compass

You can check the dividends there or on sites like the Stock Exchange.

I have a lot of BG but fancy buying the first on the list.

moose88_2

ouch, im not a stock market guy myself, but id stay stick with commodities. www(dot)resourceinvestor(dot)com/News/2011/1/Pages/2010-was-Good-for-Commodities-Will-2011-be-Even-Better.aspx

a great article above.

cashbackproblems

Stick it in a few safe investments, RSA are paying 8% and Vodaphone, Aviva are also good buys dividends wise, they dont have to be held longer than a few yrs to make money either.

Otherwise look at fixing it for 1 yr and you will get 2/3% only, as u mentioned icici they are competitive on their fixed term accounts and iv never had a problem with their service

paddyrg

Keep £8k in an interest bearing 'cash' account for emergencies, then with the other £5k invest in yourself, learn to fly, make a movie, have a holiday - you're only young once.