What to do after maxed out savings account?

System

colsten wrote: »

The Newscastle BHS ISA isn't bad, given we have 0% inflation. But paying into any cash ISA now can lock you out of the STB/HTB ISA should it actually see the light of day in autumn.

Good point, forgot about STB ISA. Yes avoid in that case and consider the high interest current acc options as before.

System

guitarman001 wrote: »

Thing is, not sure if saving for a house or emigration which is why the % into S&S I have is low.

It's beyond a joke now. I have close to £50k maturing soon and the girlfriend has ~£20k maturing. Where on Earth are people meant to put that sort ofm oney if they want a decent return!? (And I already use Santander 123 account... just the one).

The only place you will get a decent return on that sort of money is the stock market. In a capitalist society this is how the rich get richer and the poor get poorer. Many of us (myself included) are too risk averse to put large sums in to the stock market as can't stomach large losses.

guitarman001

Like I said, I don't want to put any more into the stock market for the same reason.

What is an STB ISA?

So. Anybody with £50k+ who doesn't go into the stockmarket is basically just as well keeping their cash under their bed.

steelbru

Have you considered P2P ?

chucknorris

I would normally say invest in SS, but as the markets are quite high at the moment, I have broken my own rule and I have taken some profit, and partially moved back into cash. I have recently moved quite a bit of money into an instant access account paying only 1.25%, but as soon as (if) the market dips I will move it back into SS, for the higher dividend income (about 3 to 4% depending on which fund). Part of the move was to do with moving from Fidelity to HL anyway, and it seemed a good time to do it when the market seemed high.

westy22

guitarman001 wrote: »

What is an STB ISA?

A Save to Buy (or Help to Buy) ISA which the Gov announced would be launched in the Autumn but it is classified as a Cash ISA so you can't subscribe to another Cash ISA this year if you want to open a STB / HTB ISA later in the year.

ChopperST

guitarman001 wrote: »

Good list there.
I'll use some of those.
Unfortunately when you start to have >50-60k in savings the options are really dire.

With inflation at near 0% you ARE getting a decent return...

How much ready cash do you need? With that sort of sum you really should be diversifying into investments if you have a long term timescale to avoid inflation risk into the future. Have you maxed out pensions etc?

clarky_cat

guitarman001 wrote: »

Thing is, not sure if saving for a house or emigration which is why the % into S&S I have is low.

It's beyond a joke now. I have close to £50k maturing soon and the girlfriend has ~£20k maturing. Where on Earth are people meant to put that sort ofm oney if they want a decent return!? (And I already use Santander 123 account... just the one).

I had £65k and also already had a Santander 123 which was maxed. In the end I went to see an IFA who has invested it in various funds for me at low risk. He also used my ISA allowances for this year and last. I'm seeing a much better return so far although only 6 months in. I can also withdraw funds at any time (takes 8-10 days to hit my acc).

Obviously there is risk, and the initial fee isn't cheap (usually about 2-3%), but for me it seemed the best option.

[Deleted User]

I am in a very similar position to the OP and am thinking of putting the excess into P2P - specifically Ratesetter. Any thoughts?

guitarman001

Don't think I'd like to put £50k+ into P2P.
I don't believe in Help to Buy ISA and might not even buy - that's problem - unsure what to do right now so need short term safe accounts.

I already have ~£8k in Vanguard 100%.
Maybe I should put £20k in Vanguard 20% - lower risk!?