£220,000 to invest

claire21

I have just sold an inherited property and im new to saving.
I have paid off my mortgage and have £220k left over.

I have no ISA so was looking at £3k in NSI?

I need to have access to around £50k which is needed in the next 3 months. Best short term easy withdrawl account?

I am looking at the lloyds monthly saver account and know i have to open a current acc to get it?

Also looking at Alliance and Leicester direct saver 5.64% for putting the balance, £170k in. I know if i need this money ever i need to withdraw on 1st of month and i know £35K is the "safe" level but i cant see them going bust and i dont really want to open loads of accounts with £35k in them. Martin seems to say put your money where best rate is ?

Any advice would be great. I know im in a fortunate position and i cant see me needing the £170k capital in the next few years but i do need a good return.

Thanks in advance

tom188

Any advice would be great. I know im in a fortunate position and i cant see me needing the £170k capital in the next few years but i do need a good return.

If you are looking to the long term I suggest that you should consider investing at least a proportion of your money. What is your attitude to risk?
Others will suggest possible strategies you could consider no doubt.

If you dont know then maybe a trip to an IFA is in order. You are wasting your money dumping it all a savings account.

ukmike

You are wasting your money dumping it all a savings account.

Why is it?At least it's safe & earning interest.

tom188

OK ill rephrase less crudely - you could do a lot more with your money by investing it than earning something not much more with RPI. Im all for saving accounts in the short term but if your in for the long haul and can stand the peaks and troughs youll generally get a far better return from investing it.

whambamboo

claire21 wrote:

I have just sold an inherited property and im new to saving.
I have paid off my mortgage and have £220k left over.

I have no ISA so was looking at £3k in NSI?

I need to have access to around £50k which is needed in the next 3 months. Best short term easy withdrawl account?

I am looking at the lloyds monthly saver account and know i have to open a current acc to get it?

Also looking at Alliance and Leicester direct saver 5.64% for putting the balance, £170k in. I know if i need this money ever i need to withdraw on 1st of month and i know £35K is the "safe" level but i cant see them going bust and i dont really want to open loads of accounts with £35k in them. Martin seems to say put your money where best rate is ?

Any advice would be great. I know im in a fortunate position and i cant see me needing the £170k capital in the next few years but i do need a good return.

You won't get a good return in the bank.

You're talking about saving, not investing.

There are some lower risk investment options available. It shouldn't be too hard to beat the bank.

EdInvestor

Putting it in a number of high interest accounts is the best thing to do for the moment until Claire has some time to inform herself about how to invest it for the long term.

This is quite a complicated area which replays some reading and study.

So it's worth taking the time to get it right. Don't go to any advisors, especially not salesmen in banks, until you have done enough basic reading ( start in this forum) to understand the basics about investing works.

There's no rush.

tom188

I agree that a high rate savings account is the best place initially, its just not the best option long term.

claire21

Thanks for the above.

i do have shares worth over £100k so i just wanted this money safe.

martins advice, pay off mortgage/debts, get isa, regular savings, investment.

dunstonh

Tax, accessibility, future requirements, attitude to risk etc all have to be considered before deciding on where is best to invest. It may not be sensible to utilise the cash ISA allowance until you know what you are doing. It is possible that the MAXI investment ISA would be a better option (we dont know enough about you to say).

martins advice, pay off mortgage/debts, get isa, regular savings, investment.

Martin does not give financial advice. Many would disagree with that order of events as it really depends on individual circumstances.

i do have shares worth over £100k so i just wanted this money safe.

Risk isnt shares vs savings accounts. There are a whole load of options in between and savings accounts are not a risk free option. The can be ravished over time by inflation.

tom188

martins advice, pay off mortgage/debts, get isa, regular savings, investment

Just remember there is no such thing as a one size fits all solution. Depending on your current situation this might not be the best course to persue at all.

jackthelad_2

claire21 wrote:

Also looking at Alliance and Leicester direct saver 5.64% for putting the balance, £170k in.
Thanks in advance

£100k MAX in this acc

Jack