Where to save £28,000

LottieJ

I'd be grateful if any MSE-ers have any suggestions on where to put £28,000.

I'm self-employed and it represents income. There will be VAT and tax to pay from it in due course so I will need to be able to access at least half of it. I am a higher rate tax payer.

I have an HSBC advance cash ISA (1.2%) and a S&S ISA with Charles Stanley Direct.

I don't have any appreciable savings outside of an ISA wrapper (£2k in Zopa and that's about it).

I haven't used any of this year's ISA allowance. I'm thinking that I may split my ISA allowance over my cash and S&S ISA and some of the surplus in Zopa and my pension but any other suggestions gratefully received.

Many thanks!

Eco_Miser

You could spread it around current and regular savings accounts:
https://forums.moneysavingexpert.com/discussion/5374614

LottieJ

Thanks for that link. The Bank of Scotland vantage accounts sound like a good option.

Eco_Miser

Some people have reported problems opening the second and third accounts, and they only pay 3%.
Don't overlook the TSB, Nationwide and Lloyds regular savers, they are instant access, as well as the current accounts.

longwalks1

You could buy a safe and steady FTSE share with high dividends, some will pay out 7 or 8% a year in dividends, and thats before any price rise (they can go down too!)

eskbanker

britishboy wrote: »

You could buy a safe and steady FTSE share with high dividends, some will pay out 7 or 8% a year in dividends, and thats before any price rise (they can go down too!)

A very high risk strategy and extremely unlikely to be a sensible path for OP (or anyone else) to follow!

British Home Stores probably seemed a safe and steady company not long ago, as with Comet, Woolworths, etc, etc, not to mention RBS, Lloyds, Northern Rock....

No harm in taking a bit of a punt with a high-yield blue-chip but not with £28K of which some will be needed in the short to medium term, so far more prudent to spread eggs into multiple baskets via funds or whatever for long term investment, and keeping short to medium term covered by cash.