£60K - where to put it?

fireuptheband

Interesting (excuse the pun!).

I found this too
Britannia 1 Year Fixed at 7.5%
http://www.britannia.co.uk/c_savings/product/regsav/fr_regsav/prod.html

Any good?

Market_Oracle

fireuptheband wrote:

Interesting (excuse the pun!).

I found this too
Britannia 1 Year Fixed at 7.5%
http://www.britannia.co.uk/c_savings/product/regsav/fr_regsav/prod.html

Any good?

Its a regular saver, the real return is (7.5%+feeder)/2 i.e. say 7.5%+5% = 6.25%, plus the max is £3000.

So you would need to setup and manage about 20 such accounts

deefadog

To save antoher thread i am in the same boat, for around 75-80k - I'd like to put this away for 5 years, so in theory it will pay our mortgage off in 5 years (current mortgage 123k).

One thing i don't understand is the amount your earn would affect this? could someoine simplify it for me please? we are both (me & wife) on standard rate tax.

Thanks for any advice

Market_Oracle

deefadog wrote:

To save antoher thread i am in the same boat, for around 75-80k - I'd like to put this away for 5 years, so in theory it will pay our mortgage off in 5 years (current mortgage 123k).

One thing i don't understand is the amount your earn would affect this? could someoine simplify it for me please? we are both (me & wife) on standard rate tax.

Thanks for any advice

20% tax for basic rate, so on a 6% bond, your net interest is 4.8%

Don't forget the cash isa's you can save £6k per tax year (£3k each), so thats £6k now and £6k in April 07.

With inflation on the rise (RPI 3.6%), you could also put some into the NS&I index linked 5 year Certs paying RPI+1.1% or currently 4.7% (tax free). These track RPI during the term.

dunstonh

fireuptheband wrote:

Thanks dunston.

What would you advise as an alternative?

The fact you mentioned 18 months indicates savings accounts are the main area you should consider. If you had said 5 years (or more) thats when we start entering the tens of thousands of potential alternatives and differing options that exist.

The savings accounts mentioned already seem fine.

deefadog

Thanks, just the info i needed, so the Britannia 1 Year Fixed at 7.5%, would equate to 6% interest yes?

So i guess for me to maximise the profit i need to be spliting the money into different savings accounts, ISA's and the NS&I

Just so i get this right taking the 1 Year Fixed at 7.5% as an example 80k over the year would work out - 80000 + 6% (20% - 7.5%) = 84800 - £4800 interest?

Cheers

Market_Oracle

deefadog wrote:

Thanks, just the info i needed, so the Britannia 1 Year Fixed at 7.5%, would equate to 6% interest yes?

So i guess for me to maximise the profit i need to be spliting the money into different savings accounts, ISA's and the NS&I

Just so i get this right taking the 1 Year Fixed at 7.5% as an example 80k over the year would work out - 80000 + 6% (20% - 7.5%) = 84800 - £4800 interest?

Cheers

The maximum you can put into the Britiania 7.5% Regular saver account is £3k.

Effectively the highest return yuo can get (ignoring Cash ISA's) is 4.8% net on a 6% bond. Thus £80,000 * 4.8% = £3,840.

deefadog

Thanks for all the help, I have a financial friend that is going to go through mu options in few weeks, i just wanted to get a heads up on what i could expect, I expect he's may suggest some medium risk shares or something along those lines, but we'll see!

fireuptheband

Yes, thanks everyone for some very good info.

I'll let you know how I get on.

deefadog

fireuptheband, yes i'll post any other advice i find here, as were in the same baot it seems, please do so on your part aswell!

My aim, is to over pay my current mortgage and invest the lump sum, so in 4years time the figures will meet and i'll mortgage free