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Where to put £5,000

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I have £5,000 I can put away for five years but I can't find a bond that allows me to compound the interest each year - is anyone aware of any? I'd be grateful if you could point me towards one. I am a tax payer.

Thank you in advance for any suggestions
Sealed Pot Challenge no. 51

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  • le_loup
    le_loup Posts: 4,047 Forumite
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    Look in banner above for top savings accounts. Or google.
  • Archi_Bald
    Archi_Bald Posts: 9,681 Forumite
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    If you are a basic or advanced rate tax payer and £5,000 is your total savings, you won't need to pay tax on the interest from April onwards
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    5 years is borderline investment, rather than savings, isn't it...unless you're totally risk averse.

    I'd go the current account route myself (4-5% AER), leaving myself the option of taking action should something better come along.

    I certainly wouldn't be locking cash away for 5 years for circa 3%, whether compounded or not!
  • Eco_Miser
    Eco_Miser Posts: 4,708 Forumite
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    Cobweb18 wrote: »
    I have £5,000 I can put away for five years but I can't find a bond that allows me to compound the interest each year - is anyone aware of any?
    What's so wonderful about compounding?
    it's the total interest received over the term that's important, not how it was calculated.

    Anyway, I'd take 5% instant access for now, and see what's around when either the rates rise generally, or the banks get tired of buying a customer base with unrealistic returns.
    Eco Miser
    Saving money for well over half a century
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