windfall to invest

plavix52

I have £100,000 to be invested, and was thinking of opening three 123 accounts with Santander and funding them with £20,000 each. One in my name, one in my wife's name and one joint. I am retired with no income of any kind and not of pension age. My wife still works full time.
Am I thinking along the right lines or am I completely wrong?
I am aware of the conditions, ie the accounts need to be funded £500 each month,direct debits etc and can meet the requirements.
Also how to invest a further £20,000 of the remaining £40,000.
I would be very grateful for any advice.

kidmugsy

£5k x 3 at Lloyds Club current account? £2k x 3 at TSB? £2.5k x 3 at Nationwide?

But you say "invest" and then consider "savings" Why is that? Are you planning to spend the money soon?

plavix52

Thanks for your reply.
Not planning on using the money in near future, just thought getting a safe 3% on £60,000 was ok. Don't really want to buy shares at this time, can't think of anything else to do with it , hence my asking for advice.

atush

You dont have to buy shares, but you could look at funds, or investment trusts in a S&S isa.

Ones that provide an income perhaps?

plavix52

Yes,these would help spread any risk and I may choose to go that route.What are you thoughts on getting 3% on £60,000 ? Am I being foolish just leaving the money in a high st bank or is there a better place for it with no risk ?

,

MEM62

plavix52 wrote: »

Yes,these would help spread any risk and I may choose to go that route.What are you thoughts on getting 3% on £60,000 ? Am I being foolish just leaving the money in a high st bank or is there a better place for it with no risk ?

,

If it is the right decision for you then it is the right decision.

What you are proposing is saving rather than investing but if you are happy with the returns that's fine. If I put my pedant head on I would point out that no saving or investment is 'no risk' as even savings have a risk of erosion by inflation. Investing (Stocks and shares etc) should give a better return over time but that's the key - it needs to be invested over time and you will need to be able to ride out the highs and lows.

if I had that sum of money and no other provision or income I might play it safe and see and IFA.

mrsp1987

Putting £60K in one High Street bank isn't necessarily foolish. You'll be getting a decent rate of interest compared to most savings and ISA accounts. You're also protected up to £75K with the FSCS deposit protection scheme.
I was in a similar position at the end if last year. We received £100K from my husbands FIL. We paid off our debts (couple of loans and C/C) and paid £10K off the mortgage. We're now figuring out what to do and where to put the rest. I've just, as in yesterday, switched our joint account to the S123 account so we'll get cash back on our bills and we'll put £20K in there so we get 3% interest on it too.
I think you're onto a good idea for you if you'd rather stick with cash savings. You can always get an appointment with a high street bank saying you're interested in their investment platforms and get some information on that. We went to Nationwide but decided not to use them as my husband decided to use Hargreaves & Landdown instead.

Dan83

Would you consider premium bonds?

Open 2 accounts, 1 in your name and 1 in your partners name, fill them both with the max of £50k.

The money has to be in a full calendar month before its entered into a draw, or it did when I bought them.

You will have the chance to win 1 of 2 £1m prizes every month.

There is a prize calculator some where on this site telling you what the average person with average luck will win.

Winnings average less then interest on current accounts but you could win anything from £25 to £1m per month and with 2 max accounts I'd guess your almost certain to win something every month

jimjames

Dan83 wrote: »

Winnings average less then interest on current accounts but you could win anything from £25 to £1m per month and with 2 max accounts I'd guess your almost certain to win something every month

Probably most often £25. You can "win" that with £8k in a current account.


Why would you settle for such a low return when premium bonds are around 1% and you could get over 3%.

JohnRo

MEM62 wrote: »

If I put my pendant head on I would point out that no saving or investment is 'no risk' as even savings have a risk of erosion by inflation.

I'll put mine on, it's spelled pedant. (sorry couldn't resist)

atush

Gotta watch out for the Pendant heads.