Investing 20k

MoneyDragon_2

Hey guys!

I have around £20,000 cash in my savings account, earning a paltry amount of interest.

I was wondering if anyone knew of a good way to get better returns? I would love to get something like 5% annually.

- I am a low risk investor (But not a no-risk one).
- I am willing to wait for a few years (2 or 3), before withdrawing money.

Thanks guys

kidmugsy

If you find a low risk way to make 5% p.a. be sure to let me know too.

ColdIron

If you mean saving rather than investing have a look at the Top Savings Accounts link above

Silian

You should be able to get that in bank accounts for 20k (before tax off course)

http://www.moneysavingexpert.com/savings/savings-loophole

Zanderman

MoneyDragon wrote: »

Hey guys!

I have around £20,000 cash in my savings account, earning a paltry amount of interest.

I was wondering if anyone knew of a good way to get better returns? I would love to get something like 5% annually.

- I am a low risk investor (But not a no-risk one).
- I am willing to wait for a few years (2 or 3), before withdrawing money.

Thanks guys

Open a Santander 123 Current account and you'll get 3% on up to £20K - though there is a monthly fee of £2, which you can recover with cashback for utility direct debits.

Or open a TSB Classic Plus which gives 5% on up to £2k, plus a Nationwide FlexDirect which gives 5% on up to £2.5K plus some of the various accounts (Lloyds Club for example) that offer 4% on about 5K.

Those are all current accounts, not savings accounts but they offer better rates than savings. And they are all instant access and risk-free.

You need to pay in a minimum amount to most each month - but don't worry about that as you can always just take it out again straightaway. Some need direct debits monthly too, but there are various ways to set that up without losing out.

There's lots of info and advice on these accounts in the budgeting and bank accounts part of the forum.

xylophone

With your £20,000 you might try one TSB Plus current account, one Nationwide Flex Direct, one Lloyds Club and one Santander 123, cycling money round as required.....

Switch out of Nationwide after a year for a switching bonus possibly or move to the 123?

If DDs are a problem, one Tesco Internet Saver and one Instant Access Saver will fill the bill?