Advice for best returns on £5k

Simon7685

Can anyone advise me of anywhere that will pay a decent return on a £5k investment?

We don't really want to tie the money up for anymore than 1 year at a time and don't want to risk losing any of it in one of these accounts where it can up or down.

Just somewhere where we can invest it and get a decent return in interest. It has just matured in the Yorkshire Banks Local Saver which gave us 4% for tying it up for a year. They are now only paying 0.5%, which really is a bit of a P155 take:eek:

Thanks in advance

ChopperST

Simon7685 wrote: »

We don't really want to tie the money up for anymore than 1 year at a time and don't want to risk losing any of it in one of these accounts where it can up or down.

You have a very short timescale and are risk adverse so a mainstream savings account is your best bet. You can't "invest" over 1 year without an element of risk.

ISA if you are a higher rate taxpayer
OR
if you a lower rate tax payer
£2.5k in a nationwide flex direct account @ 5%
and
£2.5k in either a Santander 123 account or Lloyds Vantage account @ 3%

ColdIron

ChopperST wrote: »

£2.5k in either a Santander 123 account or Lloyds Vantage account @ 3%

You won't get 3% on only £2.5K in either the 123 or Vantage, it needs to be £3K +

ChopperST

ColdIron wrote: »

You won't get 3% on only £2.5K in either the 123 or Vantage, it needs to be £3K +

Good point sorry forgot about the minimum balance...

Simon7685

Thanks for the advice guys. Don't you need to make regular payments into those accounts though to qualify?

Simon7685

For the avoidance of doubt.

I am not without intelligence and I am not so gullable that I will invest the money with someone I don't know from Kenya or any other foreign country or the UK or anywhere else. So please do not waste your time and my time by sending me PM's offering to invest my money for me.............:mad:

I am not refering to the guys that have kindly posted on my thread, that is good advice and I appreciate it.:D

Honestly why would I give a guy from Kenya, I haven't met £5k to invest in the London Stock Exchange for me???:rotfl:

xylophone

You could each open a Flexdirect with Nationwide- £2500 in each - you simply need to pay £1000 a month into each account from an external source - it can come out again the same day.

This would give you 5% gross on £5000 for a year.

Simon7685

So once a month I could recycle existing cash from one account to the other and back again and that would suffice? If that makes sense?

xylophone

Not from one Nationwide account to the other - the money has to come from an external source.

For example, you might send £1000 from your own external account to your NW account, send it on to your wife's external account, your wife then sends it to her NW account and then to wherever she wants it to go and so on for the year of the offer - after that you can think again?

abdul56

With the Nationwide flexdirect account the £1000 has to be in the account overnight in order to qualify for the 5%. This is from an email I received from them.

Archi_Bald

abdul56 wrote: »

With the Nationwide flexdirect account the £1000 has to be in the account overnight in order to qualify for the 5%. This is from an email I received from them.

Either the person who wrote the email didn't have a clue, or there is a massive misunderstanding.

If you want to receive interest on the £1K itself, of course it must stay in the account at least overnight. Preferably all nights of the month. The max of £2.5K for interest of course still applies.

If you deposit the £1K purely to fulfill the minimum monthly deposit requirement, you can withdraw it as soon as it has arrived. No overnighting required.