Best place for £5000 for 5 years

ecclesto

I have £5000 which I can invest for 5 years. I want a safe place to invest it, not interested in stocks and shares. Any ideas please

jimjames

In which case you are not investing you are saving.

Check out the links at the top and you should find one suitable. Not even any need to tie it up for 5 years to get a good rate now.

DiggerUK

Gold, Premium Bonds and cash savings is about it.
..._

evenasus

jimjames wrote: »

Not even any need to tie it up for 5 years to get a good rate now.

A good rate?

Can you please tell me where?

latecomer

best rates are probably via current accounts - check the links under banking & saving for the best ones currently.

jimjames

evenasus wrote: »

A good rate?

Can you please tell me where?

Nationwide Flexdirect at 5% for £2500 of it. Cycle £750 through a Halifax account each month to get another £60 pa. Remainder could get 3 or 4% in another current account - someone else may be able to advise which

xylophone

Nationwide Flexdirect at 5%

On £2500 for one year subject to conditions.

See also Lloyds, TSB. Santander offerings.

Cornucopia

Santander 123 current account - 3% on-going, subject to a couple of conditions & a fee.

VT82

On £5k, Santander's 3% would be more like 2.5% after the fee, unless you also switch some direct debits to it to get some cashback.

Bear in mind that the difference in interest in year one between 'half in Nationwide's 5% and half at 3% in another current account' and 'just sticking it in something paying 1.6%' is £64. Might not be worth 2 credit checks and all the faffing just for that - up to you to decide. I do it, but I like all this stuff, and I've got a bigger amount being saved

There's not really even any point putting it in a five year bond to get the 3% interest and then forget about it - you wouldn't be able to compound the interest within the bond, and the odd £120 interest that gets paid into your current account once a year would probably be lost in the background rather than compounded in another savings product.

On a relatively small amount of savings, if you are going to go down the 'multiple current accounts and cycling money' route, you should be doing it as much for the sport as for the interest.