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Where to invest 200K ? Needs to be higher than mortage Interest
rscott300
Posts: 5 Forumite
Can anyone suggest a savings tax free savings account where I can invest 200k but will return more than 5.50% ?
Basically I have an offset mortgage which my savings is reaching the same amount as the mortgage. I rent out two properties and need to be able to offset the mortgage interest on my tax return (otherwise I pay tax). Obviously for this to be worthwhile the interest i accrue has to be higher than the mortgage because as soon as I take the money out of the offset account I will have to pay the bank interest on the mortgage...
Hope this make sense and someone can help...
Rich
Basically I have an offset mortgage which my savings is reaching the same amount as the mortgage. I rent out two properties and need to be able to offset the mortgage interest on my tax return (otherwise I pay tax). Obviously for this to be worthwhile the interest i accrue has to be higher than the mortgage because as soon as I take the money out of the offset account I will have to pay the bank interest on the mortgage...
Hope this make sense and someone can help...
Rich
0
Comments
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Can anyone suggest a savings tax free savings account where I can invest 200k but will return more than 5.50% ?
Invest or save? You say both in the same sentenceI am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Can anyone suggest a savings tax free savings account where I can SAVE 200k but will return more than 5.50% ?
Sorry, but I don't think such an animal exists. You can put 3k into an ISA per tax-year (wow!).
You can also purchase index linked savings certs. Max 15k per issue, with 3 & 5-year issues, and several issues per year. With the current high RPI they just about exceed 5.5% return (I think). However, with continued interest rate increases, RPI is bound to drop, with a drop in the return on the certs.
Is your OH a tax-payer? If he/she is not, then you could invest about 100k in their name and get the interest tax-free (max 5.25k per year tax free).In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
I've already responded to the same question from this member here: http://forums.moneysavingexpert.com/showthread.html?t=519538
Please don't continue the duplication of the thread - please reply on the other thread.0
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