Safe investment for £20000

luckybird_2

i have just had my divorce settlement. i will use £30000 to pay of the bulk of my mortgage. £5460 for an isa . I want to keep about £10000 for instant emergency use as my monthly income is very erratic. This will leave me with about £20000 to invest.
Any suggestions.. there must be no risk to my capital

Totton

For no risk to capital then you should only look at savings accounts. Whatever you do please do not put it into any form of stock market (or bond) investment as it can go down quite easily.

HTH,
Mickey

worried_jim

Book an appointment with an IFA for proper advice, not ideas from an internet forum.

http://www.which-advisor.co.uk/?gclid=COGU4v6y57AC!!!!fAodvwzN2Q

bigadaj

worried_jim wrote: »

Book an appointment with an IFA for proper advice, not ideas from an internet forum.

http://www.which-advisor.co.uk/?gclid=COGU4v6y57AC!!!!fAodvwzN2Q

The requirement for no risk to capital means only cash accounts, consulting an IFA will probably incur costs and may result in the monies being put into an investment at risk of capital loss.

Just look for the best deposit account, a useful technique is to split into say four pots of five thousand and, if you have no immediate need for the money place each into one to four year term deposits. This means that some money is available annually, but you benefit from the higher rates available for longer term deposits.

gkerr4

agreed with the above - if you are certain on the 'no risk' then savings accounts are as good as it gets.

you get a better rate if you are willing to 'lock' it away for a set period, but beware that there are usually penalties if you later decide you need access to the cash.

broad-sword_2

There is always a risk, though in the case of FSA protection backed savings (or any other) accounts we are looking at the end of financial world as we know it for it to go completely wrong.

Seek professional advice if you are not sure, but please think about what you want, when you want it, and what you could afford to possibly lose, worst case (this is more for anything up the risk scale than simply parking the money in a savings account).

Tammer

Hi,

Just out of interest, why must there be no risk to capital? You seem to be sensibly clearing some debt and keeping some cash aside so why can you not afford a small risk with the £20k?

You are absolutely guaranteed to lose money by investing money in a savings account after inflation is taken into account.

kidmugsy

luckybird wrote: »

i will use £30000 to pay of the bulk of my mortgage.

My own target was always to get my mortgage down to around £100. Then the BS keeps the deeds safe for me without any charge beyond the usual interest and I remain a member of the society.

ColdIron

I tried leaving £100 in my account for the same reason, they closed it anyway and posted the deeds, I guess I am 100 quid better off though