Where to put £25k to get income?

cslogg

As the header says., In a few weeks I will have £25k which I want to put into an account and get a monthly sum from.
Any suggestions as the best place and how much per month I could expect ?


Thanks
cslogg

chewmylegoff

cslogg wrote: »

As the header says., In a few weeks I will have £25k which I want to put into an account and get a monthly sum from.
Any suggestions as the best place and how much per month I could expect ?


Thanks
cslogg

if you're just talking about putting it in a bank account, then google "savings account best buy" or something like that. you'll get about 3% which is around £60 a month, before tax, so just under £50 a month once 20% tax has been deducted.

green_machine_2

It really depends on what you want from it, i.e. fixed deposit (no withdrawals/top ups), fixed period (one/two/three years), etc.

There are a few good options on this website: Banking & Saving > Savings tab > Top Savings Accounts.

Northern Rock 3.01% easy-access account, min deposit £1,000 and max deposit £100,000, online access and no withdrawal restrictions. Only drawback is you must maintain at least £1,000 in the account or the interest drops to 0.1%.

That's the first option on that page, but there are plenty more to choose from depending on what you're looking for.

Baldur

With current savings rates, you are looking at around 3% AER (maybe a bit more on fixed rate/term accounts) from £25k - approx £50 per month after basic rate tax.

Remember that taking the interest monthly will reduce the real value of your cash, because of inflation and that many of the better rates only last for the first year before dropping dramatically.

joerugby

Depending on your attitude to risk you could use an equity income fund which could pay 4% net of basic rate tax.

Remember: you might not get your £25,000 back, or you might get more!

ed123_2

.....another way would be to put your expected monthly income as above £50 x 12 months= £600 in an instant account to use during the year and place the rest in varying terms of fixed term accounts

saverjustice

Do you really need the income?