Where is best to put £2,500 for 12 months?

sabin6912

Hi,

I wasn't sure if this was a suitable place to post this thread but thought it was worth a try. I've never invested my savings before but luckily I'm now in a position to put some funds to one side to hopefully get a decent R.O.I.

I have £2,500 in savings. I would ideally like to invest them now, and take them again in 12 months time, I don't need access to them for at least 12 months (a little longer if the returns would be greater). Ideally I don't want to be investing in stocks, shares on anything with risk. Just looking for the best level of interest I would be able to achieve with the money I have saved up.

Thanks in advance for any help

matttye

Nationwide FlexDirect account - 5% AER.

YorkshireBoy

A brace of TSB Plus accounts, for 5% AER.

Matttye's suggestion above is OK if you don't want to run two accounts, and will make you a little less at 4.89% (because you won't benefit from compounding), and only runs for 12 months (you said longer if possible).

sabin6912

matttye wrote: »

Nationwide FlexDirect account - 5% AER.

I was just reading about this. Is it not a requirement to have £1,000 per month paid into this type of account?

Whereas I just have a one off lump sum?

YorkshireBoy

sabin6912 wrote: »

Whereas I just have a one off lump sum?

Just bounce £1K a month out to another account and straight back again.

This is (another reason) why 2 x TSB Plus is better, since you can set up a couple of cross firing SOs and sit back and forget about it.

jimjames

Can't beat the replies already given. Just to point out that you are definitely not investing but saving if you have a 12 month window.

Stefan234

YorkshireBoy wrote: »

Just bounce £1K a month out to another account and straight back again.

This is (another reason) why 2 x TSB Plus is better, since you can set up a couple of cross firing SOs and sit back and forget about it.

Best check if this is possible before you go ahead OP. Nationwide also do an instant access cash ISA which I have, though the APR is lower.

You won't get much of a return with savings, why not invest half your funds in a mutual find via a stocks and shares ISA then save the rest? I believe you can have a cash ISA and a S&S ISA at the same time, can anyone confirm?

Archi_Bald

Stefan234 wrote: »

Best check if this is possible before you go ahead OP.

it is pretty safe to assume Yorkshireboy wouldn't have posted it is if it wasn't possible

Stefan234 wrote: »

You won't get much of a return with savings, why not invest half your funds in a mutual find via a stocks and shares ISA then save the rest?

Suggesting an S&S ISA for 12 months is terrible advice. You should never make any investment (which an S&S ISA is) if you don't have at least a 5 year horizon

Stefan234 wrote: »

I believe you can have a cash ISA and a S&S ISA at the same time, can anyone confirm?

Yes you can but any ISA is quite irrelevant for the OP's situation because current accounts, as already mentioned, are the best choice for them.

fly-catchers

YorkshireBoy wrote: »

A brace of TSB Plus accounts, for 5% AER.

Matttye's suggestion above is OK if you don't want to run two accounts, and will make you a little less at 4.89% (because you won't benefit from compounding), and only runs for 12 months (you said longer if possible).

Can you set up two TSB Plus accounts if you are single?

jimjames

fly-catchers wrote: »

Can you set up two TSB Plus accounts if you are single?

Yes you can. And even if you're married