£12000 very short term investment

harvey1964

Recently borrowed £12,000 to go towards my wedding in November this year, got a good rate on the m & s loan there of 3.6%. Is there anywhere I could put it to good use to make a small amount of interest rather than in my bank account which doesn't get any interests . I was going to out it into my isa ( I get monthly interest on it ) but apparently you need to put it in up to 30 days after the account is opened, any wee bit of interest is better than nothing until I need it around September time.
Thanks in advance

colsten

As you want the money in [STRIKE][STRIKE][STRIKE]November[/STRIKE][/STRIKE][/STRIKE] September, your only reasonable options are instant access accounts. The best ones are the interest paying current accounts but you won't be able to net anything like 3.6% after tax. The best you can expect is, effectively, a reduction in interest you have to pay.

Plenty of threads about the various current accounts - TSB, Nationwide, Tesco, Santander, Halifax................

Ryan_Futuristics

2.9% before tax at RateSetter with their 1 month term

Fruit_and_Nut_Case

Post telling you that you're mad to borrow £12k to pay for your wedding in 5-4-3-2-1...

colsten

Ryan_Futuristics wrote: »

2.9% before tax at RateSetter with their 1 month term

Forgive me but this seems stupid if you can get 4 and 5% on most of the £12K, and 3% on the rest.

Ryan_Futuristics

colsten wrote: »

Forgive me but this seems stupid if you can get 4 and 5% on most of the £12K, and 3% on the rest.

Possibly

Just when I've looked into these current account deals, they involve siphoning money into something, often paying a fee that wipes out a chunk of the interest until you're above a certain level

I'm not sure, in the short-term, you can just put £12k into something and be making 3% from day one

jimjames

Ryan_Futuristics wrote: »

Possibly

Just when I've looked into these current account deals, they involve siphoning money into something, often paying a fee that wipes out a chunk of the interest until you're above a certain level

I'm not sure, in the short-term, you can just put £12k into something and be making 3% from day one

No fees on TSB or LLoyds accounts. And no risk either.

Add in a Halifax account and you'll have the maximum return you can get on the money.

OP - you are certainly not looking at investments over that timescale, you should 100% stay in savings.

colsten

Ryan_Futuristics wrote: »

Possibly

Just when I've looked into these current account deals, they involve siphoning money into something, often paying a fee that wipes out a chunk of the interest until you're above a certain level

I'm not sure, in the short-term, you can just put £12k into something and be making 3% from day one

I am sure you can. In fact, you can make a lot more as you can get 5% on £4,500, and 4% on 5,000. The rest into a 3% account. No fees in sight if you choose wisely.

As there is two of them (at least I think so, as the money is for a wedding), and if they trust each other with money, they can get 5% on the lot. So they could actually make a teeny-weeny profit, even without factoring in the Halifax that JJ suggested (though everybody should have one of these).

Gadfium

2.9% before tax and having to get involved with P2P vs setting up some current accounts with zero risk to the money and a higher interest rate to boot? No choice there...current accounts all the way.

xylophone

Are you happy to open joint accounts with your affianced?

A sole Nationwide Flex direct each and a joint, and a sole TSB Classic Plus each and a joint should cover it.

Move the interest earned to the unfilled TSB joint.

You would need to move £1000 out of TSB each month into NW and back again - can be done on the same day with Faster Payments.

Ryan_Futuristics

jimjames wrote: »

No fees on TSB or LLoyds accounts. And no risk either.

Add in a Halifax account and you'll have the maximum return you can get on the money.

OP - you are certainly not looking at investments over that timescale, you should 100% stay in savings.

colsten wrote: »

I am sure you can. In fact, you can make a lot more as you can get 5% on £4,500, and 4% on 5,000. The rest into a 3% account. No fees in sight if you choose wisely.

As there is two of them (at least I think so, as the money is for a wedding), and if they trust each other with money, they can get 5% on the lot. So they could actually make a teeny-weeny profit, even without factoring in the Halifax that JJ suggested (though everybody should have one of these).

But as soon as I research TSB (for example) it says interest on £2,000 max with regular £500 contributions

Lloyds £4-5k, with £1.5k in a month?

So you have to construct some network of money siphoning between 3 or 4 accounts, hope they don't change the terms, and you might get ... what ... 0.3% more than just depositing it in RateSetter?