5 year saver

Nobody'sBusiness

I have a £30.000 lump sum to invest (my pension) which is to last my husband and me till we die as he has none. I've placed it in Legal and General's 6 year deposit bond (linked to FTSE) but I'm getting cold feet and there's time to withdraw. I can't lose but if the FTSE bombs over the next 6 years I'd only end up with £32.500.
Can anyone tell me how much I'd end up with (net) if I went with a 4.45% 5 year fixed saver? What would others do in my position?

MoneySaverLog

I seem to remember reading bad things about this plan on here so may be worth searching for it.

The savings calculators on this site http://www.moneysavingexpert.com/savings/savings-accounts-best-interest (right at the bottom of the page) may help you find out what kind of return is likely given various interest rates.

opinions4u

I have a £30.000 lump sum to invest (my pension) which is to last my husband and me till we die as he has none

See an IFA.

Starting point would be to get tax relief on this money that will gross it up to £37,500.

The L&G product is garbage.

Nobody'sBusiness

Well it's in my husband's name and will be tax free as he's not earning. There are 2 ISAs within the £30.000 then the whole lot goes into this 6 year fund. £32.500 is the least we get back and it could be nearer £41.000 or more depending on what happens with FTSE over the 6 year period. This is what made it attractive but it's gloom and doom for the forseeable future according to the predictions in the media.
Thanks for your advice I'll search the forums for more on this deal.
PS I like Layla too!

ctdctd

If you save it all at 4.45% you will get back:-

£37296 if registered as a non-tax payer or
£35734 if a standard tax payer

HTH

opinions4u

cometomama wrote: »

Well it's in my husband's name and will be tax free as he's not earning. There are 2 ISAs within the £30.000 then the whole lot goes into this 6 year fund. £32.500 is the least we get back and it could be nearer £41.000 or more depending on what happens with FTSE over the 6 year period. This is what made it attractive but it's gloom and doom for the forseeable future according to the predictions in the media.
Thanks for your advice I'll search the forums for more on this deal.
PS I like Layla too!

You can still get tax relief on pension contributions as a non-taxpayer.

http://www.direct.gov.uk/en/pensionsandretirementplanning/companyandpersonalpensions/personalpensions/dg_4017567

If you don't pay tax, you can still get tax relief on your (or someone else's) contributions up to a certain limit.