£22k to invest long-term

rutters

Just had a 3 year bond mature and I now have the £22k to re-invest.

Used my ISA allowance so I'm looking for the next best thing please (or would it be better to wait until next April to use £15k of it in a new ISA?)

I'm willing to lock it up for a while so any suggestions please?

thanks

w00519772

rutters wrote: »

Just had a 3 year bond mature and I now have the £22k to re-invest.

Used my ISA allowance so I'm looking for the next best thing please (or would it be better to wait until next April to use £15k of it in a new ISA?)

I'm willing to lock it up for a while so any suggestions please?

thanks

It depends on your attitude to risk. Perhaps invest some of it in the stock market?

Alternatively open some current accounts, which allow easy access to your money. Santander have a 3% 123 account up to 20K. You could put 17.5K in there. TSB and Nationwide have 5% current accounts. If you do not like the stock market then if it was me; I would:

Open a 123 account (santander) and invest 17.5K
Open a Nationwide account (with 5% interest) and invest 2,500
Open a TSB account (with 5% interest) and invest 2K

I have done the above, but I only have 11K in the Santander account.

Ogre_Nose_Grid

Cash interest rates are artificially and intentionally supressed by the Govt. So, fixed income or shares it should be.

If shares, perhaps a Vanguard tracker: rock bottom charges.

If bonds, may I suggest the reliable NWBD.L or LLPC.L - both paying in excess of 6%. However the value of these bonds goes up (as now) or down (as when markets fear for banks existence, or interest rates rise)

JohnRo

Ogre_Nose_Grid wrote: »

Cash interest rates are artificially and intentionally supressed by the Govt.

Technically its the central banking politburo, although the distinction is becoming increasingly blurred.

rutters

Thanks

Why not just put all £22k in a 5% current account? Do need my wages going in too?

Ryan_Futuristics

rutters wrote: »

Thanks

Why not just put all £22k in a 5% current account? Do need my wages going in too?

The good rates are usually limited to the first £2-3k or so

If you don't mind your £22k going up and down a bit, the stock market usually produces the best returns ... Personally I'd go for a good UK equity income fund like Woodford Equity Income through a Stocks & Shares ISA (put £15k in before next April, and the rest in after if you want) ... That'll pay out about 4% annual interest, but over 5-10 years you may get some good capital growth too

Otherwise there's P2P lending (which can give rates from 5-7%) but it's a new industry, so no one's quite sure of the risks yet

steviex

rutters wrote: »

Thanks

Why not just put all £22k in a 5% current account? Do need my wages going in too?

The 5% current accounts only pay interest up to £2k (TSB) and £2.5k (Nationwide).

You could open a Club Lloyds current account which pays 4% on a balance from £4k - £5k.

rutters

This sounds interesting.

' Personally I'd go for a good UK equity income fund like Woodford Equity Income through a Stocks & Shares ISA'

How do I open one? Any fees or penalties involved?

thanks

Ryan_Futuristics

You can open one here
http://www.hl.co.uk/investment-services/isa/apply-now

You'd be looking at a 0.45% management fee, and 0.6% on a good fund - so if you had your money in Woodford, you'd be paying just over 1% in charges on your investment annually ... Getting around 4% back into your account in dividends, and hopefully some market growth long-term

Many round here prefer to use a cheaper broker, and a cheap index fund, but I think Hargreaves are very good for the ease of use, customer service and information on offer, especially for beginners, and Woodford's got a good track record of beating most other ways to invest in the market (but by all means see what other people have to say)

But you'll want to get clued up

The biggest risk to your money in stocks is your own behaviours - some people really aren't suited to the stock market - so I'd go in prepared and cautious