Where to invest £25,000 to £50,000?

RajGupta

As the savings interest rates in banks are really low, I want to take some money out of banks and invest somewhere else. I am looking for safe investment which pays around 6-7%. Any suggestions guys?

grey_gym_sock

how long can you tie the money up for?

how safe does it have to be? there is going to be some risk to get that level of return.

if you end up looking at something longer term, then another kind of risk you should consider is inflation.

jimjames

Equity income funds are paying around 5%, to get above that is in corporate bond territory if is income you are after.

cashbackproblems

I get 7%+ in Kames High Yield Bond through Hargreaves Landsdown.

RajGupta

I have never invested anywhere apart from banks fixed deposits and savings account, so I am completely newbie to bonds and equity investments. How do I invest in bonds or equities? Shall I go through high street banks? I pay all my taxes through PAYE. If I invest in bonds/ equities, do I need to file taxes separately? Thanks,

ermine

I am completely newbie to bonds and equity investments. How do I invest in bonds or equities?

You must first STOP and understand the different risk profiles of investments to bank savings, where you are pretty much guaranteed to get at least what you put in. Equity prices are volatile and you may get less money than you put in, bonds have different kinds of risks that also can work out to you may get out less than you put in

You need to take these kinds to risks to get higher returns, there's nothing necessarily wrong with that but until you know what the risks are and whether you can accept them you shouldn't buy

As a rough rule of thumb you shouldn't invest money in equities that you will need in less than five years. And a hefty bear market can hammer the value of your invstment value by 50%. What you must not do at that time is sell. It's hard to do in the fog of war...

xylophone

You could try a platform like Cavendish first?
Perhaps start in a small way with your S&S ISA allowance?

SailorSam

A few months ago they were talking about this on R4 Moneybox, it appears to be a safe way to borrow or lend money bypassing the banks.

http://www.clarkhoward.com/news/clark-howard/personal-finance-credit/p2p-lending-lets-you-go-online-bypass-banks-loan/nCG3f/

opinions4u

RajGupta wrote: »

I am looking for safe investment which pays around 6-7%. Any suggestions guys?

I can categorically state that there is no such thing anywhere.

jimjames

SailorSam wrote: »

A few months ago they were talking about this on R4 Moneybox, it appears to be a safe way to borrow or lend money bypassing the banks.

http://www.clarkhoward.com/news/clark-howard/personal-finance-credit/p2p-lending-lets-you-go-online-bypass-banks-loan/nCG3f/

Read this thread and I think you'll see it isn't a safe way to lend or at least your capital certainly isn't guaranteed.

grey_gym_sock

p2p lending has been discussed on MSE e.g. here - https://forums.moneysavingexpert.com/discussion/3910385 - but is not risk-free.

as has been, nothing pays 6-7% risk-free.

if you want something that pays a known interest rate of around 6-7%, and are prepared to accept some risk that the borrower will fail to pay, then there is either p2p lending, or there are retail bonds issued by various businesses (relatively big, sometimes well-known, companies) which pay a fixed interest rate and then repay your capital after a number of years. personally, i think the interest rates on p2p are too low for the risk level, and i'd prefer to select some retail bonds.

then there are shares, for which there are no guarantees at all (neither of interest nor of capital), but where returns have tended to be higher in the very long term.