How to save £60k

Prof_FrinkProf

Hi all,

I'm looking for some guidance on how to save £60k to generate the most monthly/annual interest possible.

I currently have £50k in my accounts but I will soon be selling an asset that will give me a further £10k.

The £50k is currently split between a total of seven Lloyds and Halifax/BoS Vantage accounts, £11,400 in my ISA and the remaining £3600 sat in a spare account. The seven Vantage accounts were each earning me £10 a month, so as you can imagine I'm going to really miss these now they have been stopped.

With the new ISA allowance I believe I can put £5,940 in now and then top it up with a further £9,060 in July, correct? This then covers £26,400. Any recommendations on which cash ISA gives the best rate?

That then leaves me with £33,600 to find a home for, which current accounts would give me the best rate? I only have three monthly direct debits that I can use if required to activate an interest rate.

The whole £60k needs to be invested so it's instantly accessible and any account I use needs to have online access

Monthly income is around £2k

Thanks!

bigfreddiel

What sort of risk can you cope with?

High risk = higher income

Low risk = lower income

I would use etf's to track ftse100, ftse smaller cos., emerging markets, s&p500 and gilts. Cheap trading, instant access, medium risk and should yield 3-4%

Cheers

fj

Prof_FrinkProf

Can't afford to take any risk at all, I just want it to sit in a combination of the highest interest rate instant access accounts possible.

The money is to be used as a house deposit and could be needed at short notice anytime.

Thanks

gkerr4

in that case it will earn very little.

just pick the "best rate" ISA from the guide and go for it - although to be honest, on a monthly basis, you will find there is only pennies difference between the 'best' and the 'worst'. Try not to worry about it too much.

Prof_FrinkProf

But what about the remaining £33,600. How can I save this most effectively.

As said in my original post, I was earning £70 a month from the £35k split into seven vantage accounts, and probably the equivalent to another £15 a month or so from the £11,400 in my ISA which I don't think is too bad.

The rug is being pulled from under my feet due to the vantage accounts being stopped in July, and I wanted to work out what was the most effective method to save the remaining £33,600. I.E Santander 123 account, Club Lloyds etc

BillJones

bigfreddiel wrote: »

What sort of risk can you cope with?

High risk = higher income

Low risk = lower income

That's not really true. High risk should lead to a higher expectation of income, but it may end up paying a lower one (hence the description of it as "high risk"). If you knew that an investment would give you a higher income, then it's not really be risky at all...

It might seem like semantics, but it's a pretty important distinction.

Prof_FrinkProf

Does anyone know if the Bank of Scotland Vantage accounts are going to be scrapped at the same time as the Lloyds Vantage accounts?

badger09

Prof_FrinkProf wrote: »

Does anyone know if the Bank of Scotland Vantage accounts are going to be scrapped at the same time as the Lloyds Vantage accounts?

Santander 123, Lloyds Club, Lloyds Club Monthly Saver and TSB Plus x 2 will take care of it.

No announcement yet from BoS but I would expect them to follow a similar pattern to Lloyds or TSB

Do you really need instant access to £60k?

Prof_FrinkProf

Yea, it's my first house deposit, just waiting for the right house to come along!

I was going to do:

Halifax Cash ISA 1.55% £11,400 + £5,940 then in July + £9,060 = £26,400 total

BoS 3x £5k Vantage = £15,000 total

Santandar 123 account = £20,000 total

Which gives me a grand total of £61,400

I don't have enough direct debits to have both Santandar 123 and Club Lloyds accounts. I would just put anything else over the £61,400 into the highest savings account I could find that doesn't require a direct debit

Thoughts?

somethingcorporate

Do you have a partner? that 1.55% in an ISA is pathetic.

Eco_Miser

All the direct debits you need.