Where to put £247,000?

Filipino5

Hi, have recently sold my investment property (house prices hadn't moved in 3 years), paid off my small mortgatge and now need to put the capital somewhere where it can generate a similar amount of income as I was previously getting (£700pcm) while staying out of the property market. I have £247000 to invest/putting into savings, do you guys have any safe suggestions? My HSBC premier savings account will gives 3.4% net monthly interest with no limits, is this the best thing?

Many Thanks for any help.

Cheers.

George.

Jonbvn

Some guidance here

You should be able to beat the net rate at HSBC.

jamesd

Assuming that you're planning to keep the money around for years, long enough to recover after a stock market fall, a selection of funds purchased via a fund supermarket is one good way to go. It's likely to deliver substantially higher returns than savings accounts. With good fund selection you should be able to get a yield (interest) and some of the capital growth sufficient to match the 700 a month, though it'll come in chunks as dividends are paid.

If you don't fancy that you might get 11% gross from lending to Zopa's C market. You'll need a consumer credit license that they will help you to get if you're lending more than 25,000.