Best place to park £100k for 8 yrs?

waveneygnome

I work for a small manufacturing co....yes some still exist in the UK!

We have £100k earmarked for buying out a director in 8yrs time when he retires. It is currently earning 1.75%.....which in my book is losing money after inflation.

I have found the Investec account that pays 2.25%, but I wondered if anyone else has other suggestions?

We are a Limited company.

(We have sufficient other resources to continue to develop/manage the business)

One of the partners has suggested we buy a small flat/house (which we could afford in our area) and let it out. Rents would be about £4k - £5k per year gross.

psychic_teabag

I assume you're looking for a business account. Sorry, I don't know much about those. I see investec have a business-high-5 account which pays average of top 5 other business accounts, currently 2.25%. Perhaps that's the one you mean.
Nice thing about that account is that it automatically tracks the best rates available. But by definition it won't be the best. Their own table shows that Shawbrook bank is offering 2.9%

These are relatively short-notice accounts - are there no fixed-term accounts offering more ?
http://www.moneysupermarket.com/businessfinance/ suggests Natwest, RBS and Santander have fixed-term business accounts.

I don't know if you can lend it out on zopa or such places - not risk free, though.

waveneygnome

Yes, its the Investec High 5 account.

I hadn't come across the Shawbrook bank before. Are they independent or part of a larger group?

atypical

waveneygnome wrote: »

Yes, its the Investec High 5 account.

I hadn't come across the Shawbrook bank before. Are they independent or part of a larger group?

RBS Equity Finance owns a stake in it, but it is independent of RBS.

There are more comparison lists here:
http://moneyfacts.co.uk/compare/business/business-deposit-accounts/
http://moneyfacts.co.uk/compare/business/fixed-rate-bonds-selection/

Armchair23

Business deposit accounts seem to have atrocious interest rates you can look at
http://www.caterallen.co.uk/interest-rates/11for fixed term deposits.