Highest interest you have

ibuypropertyuk

I don't invest in high street banks but rather choose to diversify into property based bonds and loan notes where I have security and know there is sufficient equity. For the last 4 years I've been getting 10-14%pa. I am a property guy and this is my speciality.

Flobberchops

My riskiest individual P2P loan is 20%. No missed payments... yet!

TheShape

chattymum wrote: »

Hi
.
i hope its ok to post this, but i am also looking for a savings account for my 19 year old daughter. she has a lump sum that she needs to put into the best account. she wont be adding to it so its a 1 off pay in. she also needs easy access if she needs to withdrawl it.

can anyone recommend the best places to open up an account for her please.
she has 1200

thank you
christine

I recognise your username from a thread you started about a savings account for your daughter. There were some very good suggestions there for you.

If you're not sure of the specific details of the accounts you could as some more questions on that thread.

This is unlikely to be a good thread for your daughters situation as a lot of the discussion is about risky investments in shares and peer to peer lending.

aspiration_2

bowlhead99 wrote: »

My highest in the portfolio with a fixed contracted payment value (assuming the businesses involved stay solvent enough to keep paying):

Raven Russia redeemable cumulative preference shares (RUSP) pay 12p a year (3p a quarter), the share price is 135.5p.

Lloyds Banking Group non-cumulative irredeemable preference shares (LLPC) pay 9.25p (4.625p twice a year), the share price is 144.5p.

Where can I find more information like this, risky or not?

talexuser

aspiration wrote: »

Where can I find more information like this, risky or not?

Preference shares pay a fixed amount, not at the discretion of directors like ordinary shares, and have the advantage of being ahead of ordinary shares in the pecking order for payouts if the company goes bust, but that makes obviously no difference in the risk of the company going bust.

jimjames

The highest income of any investment I've had was Jupiter Dividend and Growth Trust. Income was about 30% pa. Downside was the 90+% drop in capital value so highest rate isn't always the best ....

Upwind

Just looked at my spreadsheet and excluding regular savers my best are...

2.75% - Coventry (Fixed Rate ISA)
2.50% - Shawbrook (3 Year bond)
2.50% - Coventry (Fixed Rate ISA)
2.35% - Shawbrook (3 Year bond)
2.20% - Yorkshire (Fixed Rate ISA)
2.10% - Yorkshire (Fixed Rate ISA) x 2

Plus several others investments at 2% and lower

bowlhead99

aspiration wrote: »

Where can I find more information like this, risky or not?

One place would be
http://www.fixedincomeinvestor.co.uk/x/default.html

There are a variety of things to be aware of if buying things like bonds and pibs and preference shares or zdps in individual companies. It is very much "buyer beware" and some of them are much more liquid than others.

For example, the market price of RUSP that I mentioned is over 130p and has been over 150p (though I bought both RUSP and LLPC for below par some years back). However, the shares are redeemable in certain situations (e.g. a company takeover or the amount outstanding dwindling to under £35m as a result of buybacks or conversions) and redemption would only be at par plus whatever unpaid current year dividend. So they are not seen as "safe" as for example Nat West (now owned by RBS) whose pref shares are at a similar price and more permanent in nature but only pay 9p/yr instead of 12p.

Plus they are running hundreds of thousands of square metres of warehouse /business park space in Russia and as the rouble devalued hilariously against the dollar (which they set the rents in) you might not expect their income stream to be intact in dollar terms when the tenants renew their contracts. Although the clients are often large internationals who do their business in dollars anyway and the cost of servicing their sterling prefs has got a lot cheaper in rouble or dollar post-referendum.

To support expansion this year (yay) they easily raised£100m of new convertible prefs this year (yay) which sit above these ones in priority (boo). £50m of the RUSP as well as loads of the new convertible ones are held between Woodford and Invesco. They have probably done more homework than I have, but don't necessarily share my objectives so you have to do the legwork yourself rather than saying it must be a good opportunity if famous people are investing alongside you.

Naturally, looking at a bond or a pref is a different kettle of fish to a bank deposit so don't assume being able to spot the highest current account rates and comprehend their complex T&Cs will make it a similar doddle to understand credit pricing and assess credit risk of a bond or pref or p2p loan part.

aspiration_2

Thanks bowlhead99.

darkidoe

jimjames wrote: »

The highest income of any investment I've had was Jupiter Dividend and Growth Trust. Income was about 30% pa. Downside was the 90+% drop in capital value so highest rate isn't always the best ....

An increase in % yield of an investment may reflect a fall in the value of the underlying asset value, if the dividend payout is the same and likewise vice versa. More useful to look at the whole picture.

So is that fall in price a sale!!? I wonder how you are tolerating the drop in capital, or are you just shrugging it off and focusing on the dividends? AMC of 0.75% but TER of 42.81%?? How do they work it out??