70K saving, what to do

fw1980

Hi,


Looking for some advice. I have 70k worth of savings in a bank account that's currently only paying 0.2%. I have been looking for ways to earn some interest and was going to put 20k in to a Santander 123 account but don't really know what to do with the rest of the money. I would be happy to put 50% of it away with no access for a few years if I would get a better interest rate.


Any advice would be appreciated.

jimjames

What/when do you need it for and could you leave it for 5 years plus? Any specific reason to have so much cash? Depending on your situation you may want to look at pensions, S&S ISAs as well as the Santander 123.

If it's a suitable option then act fast enough and you could get £30k into S&S ISAs in the next month and then decide what to do with the other £40k

fw1980

jimjames wrote: »

What/when do you need it for and could you leave it for 5 years plus? Any specific reason to have so much cash? Depending on your situation you may want to look at pensions, S&S ISAs as well as the Santander 123.

If it's a suitable option then act fast enough and you could get £30k into S&S ISAs in the next month and then decide what to do with the other £40k

5 years plus could be done depending on return. What sort of rates can you get on S&S ISAs? As far as the money is concerned most of it has came from inheritance and then I have also been saving.

fraz101

I'm in a similar situation to you

I opened a 123 current account and funded with 20k

Currently have 75k in cash isa that I want to use to earn better rates for.

YorkshireBoy

fw1980 wrote: »

What sort of rates can you get on S&S ISAs?

Anywhere from -50% to +50% and beyond!

jimjames

YorkshireBoy wrote: »

Anywhere from -50% to +50% and beyond!

But long term if you use a balanced portfolio it's probably a good guess to say around 5%. But investments vary in value unlike cash so it's not really comparable. Difference is that they should beat inflation long term which cash won't do.

atush

Basically, do you want to buy a house or something?

Do you have a pension? What rate of tax do you pay?

with 70K you could very easily put 15K into a S&S isa, some into a pension, and more than one current acct, plus a regular saver or 2.

You would then be diversified (the best way to be) in cash, and equities (in tax wrappers ie you save on tax).

Equities, over the long term, can produce (and have) 5% over inflation on average. This means one year 10%, one year 1%, one year -5% etc. but they are not suitable when you need the money in 5 years or less.

And dont confuse equities with single shares in single companies. Or worse, unregulated investments. Again, diversification is your friend and use funds/investment trusts instead.

For S&S isas, the equity grows tax free from CGT, and the income is tax free (outside of automatic div tax). this can be very helpful many years from now ie retirement.

Pensions, if you pay Basic rate, every 100 into a pension cost you only 80. On top of that immediate gain, if you have an employers pension and pay in , you will get 'free money' on top.

In current accounts for your cash, you can get 3-5%, and in regular savers 5-6%

diamonds

Property - whilst still under 2007 prices, the property market has not recovered, which it is doing a alot faster rate than interest rates.

Markets are still all over the place, investments no.


Pensions might never be used.



Property.

jimjames

diamonds wrote: »

Property - whilst still under 2007 prices, the property market has not recovered, which it is doing a alot faster rate than interest rates.

Markets are still all over the place, investments no.

Pensions might never be used.

Property.

Completely disagree. Property may have a place but it's hardly flexible and not exactly diversified. It really sounds like you don't understand other options.

diamonds

jimjames wrote: »

Completely disagree. Property may have a place but it's hardly flexible and not exactly diversified. It really sounds like you don't understand other options.

The option to have full control of a investment, a monthly income and a rising value asset rising faster than rates. What other investment gives that security.

Flexible ? A small holding mortgage to re-mortgage at any time cash is needed on equity. Martin is not all correct in saying clear your mortgage, its a massive financial lifeline when minimal payments loan to value on a great deal.

Better showing a small mortgage on a credit file and for future borrowings which can be cheaper as secured and longer term payments, you are less financial risk with a small ongoing mortgage on your credit file than a cleared mortgage that falls off your credit file after 6 years.

ratechaser

Florencefiona wrote: »

Though I am new at this forum. I have an idea to invest. you can invest your saving in amazon niche business. here you'll get an unbelievable annual return.

I think I could just about believe a -100% return :rotfl: