Capital Investment for Monthly Interest

Uncle_Albert_2

Hi There,
I am looking for the best place to invest a lump sum of £120k in order to get interest paid monthly to boost income.
Has anyone got some suggestions?

Over to the experts!
Many thanks.
Uncle Albert

shays_mum

icici?, highest paying bank online. HTH, goodluck

Errata

Cahoot - internet only account current interest rate is 5.5% and paid monthly.

CLAPTON

there is of course no difference between two accounts with the same EAR : one paying monthly interest and the other paying it yearly but you choose to withdraw the equivalent 'interest' each month.

Uncle_Albert_2

Hi There,
Thanks for your replies and the useful info.
Cheers
Uncle Albert

Fenella

Tax will be deducted from these accounts. Make sure you take advantage of your annual ISA allowance. You can put £3000 per annum into a mini cash ISA. Some of these pay interest monthly (look at Bradford & Bingley) and you can withdraw the interest without it being taxed.

missile

I suggest you read http://www.moneysavingexpert.com/searchnews.php?searchfield=newstext&searchstring=saving

jem16

Uncle_Albert wrote: »

Hi There,
I am looking for the best place to invest a lump sum of £120k in order to get interest paid monthly to boost income.
Has anyone got some suggestions?

Over to the experts!
Many thanks.
Uncle Albert

I would really advise seeking the help of an IFA and getting the money properly invested especially as you intend taking an income from it.

All the suggestions so far have been for savings accounts. With the highest paying interest at 5.9% gross, this is only 4.78% net. With inflation running at around 4.8%, the value of your capital and therefore income coming from it will erode over the years.

What you really need is the capital invested so that it would allow about 5% for income as well as an extra percentage to provide growth on the capital. This would be quite possible with investments but not savings.

Yogibear

jem16 wrote: »

I would really advise seeking the help of an IFA and getting the money properly invested especially as you intend taking an income from it.

All the suggestions so far have been for savings accounts. With the highest paying interest at 5.9% gross, this is only 4.78% net. With inflation running at around 4.8%, the value of your capital and therefore income coming from it will erode over the years.

What you really need is the capital invested so that it would allow about 5% for income as well as an extra percentage to provide growth on the capital. This would be quite possible with investments but not savings.

I have a similar request ,but where do you find an ifa that you can trust,maybe the wrong word,I contact Hargreaves and Lansdowne 2 years ago but all I got was junk mail and still get it 3/4 times a month

jem16

H&L are IFAs but are more in the line of discount brokers for the DIY investor.

If it's an investment you are after, then look for an Investment specialist IFA rather than a jack-of-all-trades IFA. Start by looking at www.unbiased.co.uk to find those IFAs in your own area but don't filter any out as apparently there are flaws in the filtering.

After that narrow down your choice away from large salesforces(often using 0870/0845 numbers) and towards small firms where you can contact the owner/partner(usually local numbers). From then contact a few and ask them if they specialise in investments and what their charges are with regards fees or commission.

Some IFAs now operate under the new model where they take a lower rate of initial commission and rely on the ongoing yearly(trail) commission. Depending on the amount invested this can be around 1% initial and 0.5% trail. Any extra initial commission is rebated back into your investment. IMO this is the best sort of IFA to look for as the better your investment does, the more they get paid so the incentive to provide you with better ongoing servicing is there.

EdInvestor

There are many threads in the Savings and Investment forum about investing largeish sums for income.Suggest you check there.