£15,000 to invest in an ISA or mutiple bank accounts ???

steveyt_2

Hi.....i soon will be able to tie up for up to 3 years around £15,000 when my endowment matures.

Would i be better off putting it in a 3 year ISA (and what's the best % rate do you know)...OR.... do i play around with it and open up several bank accounts 'playing the system' to get £100 off each bank over a year as i noticed on Martins show the other day.

I want it to gain a steady bit of growth....not risking the stock market.

thanks in advance....

YorkshireBoy

steveyt wrote: »

Would i be better off putting it in a 3 year ISA (and what's the best % rate do you know)...OR....

What's the best rate you've found so far with your own research?

do i play around with it and open up several bank accounts 'playing the system' to get £100 off each bank over a year as i noticed on Martins show the other day.

I think you've possibly misunderstood. You don't need £15K to "play the system" for switching incentives.

Put your £15K into the best interest paying accounts, and "play the system" with a nominal £20 or so.

In other words, treat the two activities separately...make some interest with the £15K (around 4% should be possible), and treat the incentives as a (lucrative) sideline.

steveyt_2

Literally only just thought about it but i assumed you had to have a minimum amount going into these accounts although i do appreciate you can have £1000 in on the 1st of the month and take it elswhere a couple of days later etc etc...Wasnt sure if it affected your credit score too !

YorkshireBoy

steveyt wrote: »

assumed you had to have a minimum amount going into these accounts

Some (most) you do, and some (or rather one) you don't. The account T&Cs will clarify.

although i do appreciate you can have £1000 in on the 1st of the month and take it elswhere a couple of days later

Same day would make you more interest. Two days every month loses you around 7% of your interest over the year!

Wasnt sure if it affected your credit score too !

Opening multiple current accounts* could affect your credit rating in the very short term, although that's not been my experience.



*Opening the 3 or 4 required to maximise the interest on the £15K shouldn't have any major effect. However, opening another 10 (5 donors and 5 for switching incentives) could possibly hamper/hinder a mortgage application in the short to medium term.

bigfreddiel

What happens in three years time?

Although three years is a bit on the short side I would go for a couple of investment trusts that yield about 4%, for example Cty - city of London, they have increased their dividend every year for the last 50 years.

Unless you're planning on building up a nice big ISA capital, then don't bother because you can earn £5,000 divis tax free, and £1,000 interest tax free. Of course if you're a higher rate tax payer you need to reconsider.

Cheers fj

jimjames

I'd be asking the same question as fj. What's the 3 year deadline? You've been invested in stock market with the endowment do any reason to not continue being invested rather than just keeping as cash?

steveyt_2

Thanks all.... didnt want to tie it up for too long as kids will be at college or "dad... can i have a car age"

Appreciate your time..... just be nice to make the most of what i have

smulx

I found this website helpful in deciding what to do with my own savings - http://bankaccountsavings.co.uk/