Is this a rational way of investing money for one year?

DragonQ

I would switch to First Direct if I qualified for the £100. Since I had an ISA with them maybe 5-6 years ago I don't think I do. Their 6% regular saver is enticing but I have to keep a certain amount in my Vantage accounts so if using the regular saver pushes me below that then it'll be counter productive.

As of April I'll be getting:

~£2500 in FlexDirect (5% = £125)
~£26k in Flexclusive ISA (4.25% = ~£1120)
~£6000 in Vantage (4% = £240)
~£3000 in Vantage (3% = £90)*

An average rate of ~4.1%, so well above inflation and well above my student loan rate of 1.5%.

*£1000 is from an interest-free overdraft, so not really my money.

lonewolf123

DragonQ wrote: »

I would switch to First Direct if I qualified for the £100. Since I had an ISA with them maybe 5-6 years ago I don't think I do. Their 6% regular saver is enticing but I have to keep a certain amount in my Vantage accounts so if using the regular saver pushes me below that then it'll be counter productive.

As of April I'll be getting:

~£2500 in FlexDirect (5% = £125)
~£26k in Flexclusive ISA (4.25% = ~£1120)
~£6000 in Vantage (4% = £240)
~£3000 in Vantage (3% = £90)*

An average rate of ~4.1%, so well above inflation and well above my student loan rate of 1.5%.

*£1000 is from an interest-free overdraft, so not really my money.

Decent stuff! I really like Vantage too. I would go for investment in S&S as well but because I'm only holding money for short term (2-4 years because I'm buying a house) investment stuff seems a bit risky for such a short time...

But I'll be back on the investment playground after getting the house out of the way

DragonQ

lonewolf123 wrote: »

I would go for investment in S&S as well but because I'm only holding money for short term (2-4 years because I'm buying a house)

That's exactly the reason I am not into S&S right now. I live in a pretty expensive area - if I stay here my current savings pot is barely enough for a deposit of a one bedroom place (and that doesn't leave any money for furniture, etc.), let alone for a larger house!