80k to invest

furby-2003

£80k to invest

I have 40 in premium bonds and will increase that to 50 when it comes in

I can probably only invest for 12 months as we may buy a new house and a car. whats the best rate possible and best way to save

i would ideally like monthly return

Thanks

colsten

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest?_ga=1.91715802.1970917942.1424978406

furby-2003

by the way, its currently sitting an ns&i direct saver. I pay no tax but i can't seem to figure out how you declare it with a nsandi account

atush

You dont pay tax on NSI?

In any case, you need a different title. You dont have 80K to invest, you have 80K to save for a year?

Investments are long term 5 years or more and carry risk. You are looking for risk free savings.

And i'd put it in a savings/current acct where at least you will get interest rather than PBs?

MarkBargain

furby-2003 wrote: »

I have 40 in premium bonds and will increase that to 50 when it comes in

The Premium Bonds annual prize fund interest rate is only 1.35% so is it a good idea to invest £50K?!

Most ISAs pay 1.6% (up to £15K a year) and Santander 123 pays 3% before tax (up to £20K, £2 monthly fee).

furby-2003

so far ive got £125 in the last 4 months so it seemed pretty good compared to most things thats why i considered the extra £10k

MarkBargain

furby-2003 wrote: »

so far ive got £125 in the last 4 months so it seemed pretty good compared to most things thats why i considered the extra £10k

So if your luck keeps up you'll win three £125s a year, making you £375 on your £40K investment.

£40K in a 1.6% ISA returns £640 a year.

£40K invested in an L&G Ethical fund (to pick an investment fund at random) a year ago would have made nearly £3K.

Gadfium

furby-2003 wrote: »

so far ive got £125 in the last 4 months so it seemed pretty good compared to most things thats why i considered the extra £10k

Hmm...£125 in 4 months works out at £375 per annum. Which is 0.94% interest. I would call that a lot worse that most things, not better.

Gadfium

furby-2003 wrote: »

I can probably only invest for 12 months as we may buy a new house and a car. whats the best rate possible and best way to save

You don't invest for 12 months. You save.

There's a shedload of threads here all asking the same question and pretty much all getting the same answer (current accounts). A little legwork will find these threads.

MarkBargain

Gadfium wrote: »

You don't invest for 12 months. You save.

I see the point you are making, but one bought an investment fund now and sold the units a year later wouldn't that be an investment, albeit a short term one with some risk of losing money?

Gadfium

MarkBargain wrote: »

I see the point you are making, but one bought an investment fund now and sold the units a year later wouldn't that be an investment, albeit a short term one with some risk of losing money?

Well yes, it would. But it would be a very high risk thing to do, especially as the OP said that she may buy a house and car in the next 12 months.
Given that the market does fall, could you stomach seeing your investment drop by 30-40% just as you need the money?
i would think that the general advice would not to invest in the market over such a short period of time.