Lump sum for monthly interest

noreendavies

I've had £43,000 in a fixed rate bond for 3 years with Nationwide and it's been paying me £116 per month for 3 years. It is due to mature soon and I wonder where I can reinvest and get similar monthly income on it (or more if possible).

xylophone

http://www.thisismoney.co.uk/money/saving/article-1621507/Best-saving-rates-Fixed-rate-bonds--accounts.html

droopsnoot

I work out around 3.2% AER for that, or 4.0% if the £116 per month is after standard rate tax has been deducted. Nothing on that table gets close unfortunately.

xylophone

Nothing on that table gets close unfortunately.

Indeed, but if a deposit account is required then there is not much choice at the moment.

gozomark

are you prepared to risk your capital ?

marathon_man_3

Placing £43k with FirstSave, paying 3-01% gross over 2 years, will give you approximately £86 per month after 20% tax is deducted at source.
http://www.firstsave.co.uk/accounts/index.html

You might not top that at the moment, unfortunately.

jimjames

marathon_man wrote: »

Placing £43k with FirstSave, paying 3-01% gross over 2 years, will give you approximately £86 per month after 20% tax is deducted at source.
http://www.firstsave.co.uk/accounts/index.html

You might not top that at the moment, unfortunately.

Half in that and half in an equity income fund where the capital is at risk would give 4.5-5% on the other half.

But only if the OP is prepared to risk capital