Where to put £5,000

Cobweb18

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

le_loup

Look in banner above for top savings accounts. Or google.

Archi_Bald

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

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

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.