UPDATE: Being redundant, have £20k to invest. Please advise.

Soprano

Evening all,

I'll be out of work late December with a figure just off £30k. I planned to put £20k 'away' and hold on to the rest until I get a job. I don't really expect to be unemployed very long, but want to be able to get the money should things go pear shaped.

I have never had a chunk of money before and would be grateful for any advice where I could put the money away, ideally for a year or so.

Thank you

His_Lordship

Soprano wrote: »

Evening all,

I'll be out of work late December with a figure just off £30k. I planned to put £20k 'away' and hold on to the rest until I get a job. I don't really expect to be unemployed very long, but want to be able to get the money should things go pear shaped.

I have never had a chunk of money before and would be grateful for any advice where I could put the money away, ideally for a year or so.

Thank you

Any loans that could be cleared?

Aegis

Perhaps the money should go into a high interest savings account to ensure that should your period of unemployment last longer than expected you have the funds to cover yourself for as long as you need. Once you have a job and know your income and requirements a bit better, that might be the time to invest.

dunstonh

You shouldnt invest the money until you get employed again.

Soprano

His_Lordship wrote: »

Any loans that could be cleared?

£1700 on CC which I'll clear with pay off. Nothing else.

Aegis wrote: »

Perhaps the money should go into a high interest savings account to ensure that should your period of unemployment last longer than expected you have the funds to cover yourself for as long as you need. Once you have a job and know your income and requirements a bit better, that might be the time to invest.

Yes, this is what I was thinking, but I wouldn't even know where to look. It would just sit in my Barclays current account otherwise.

dunstonh wrote: »

You shouldnt invest the money until you get employed again.

I agree. I wanted an idea of where to put £20k of it (while keeping £7-9k in account to cover everything for a few months) but to be able to access it if worst case scenario, I didn't get a job with in a few weeks.

duchy

As a short term solution -stick it in premium bonds (Yes yes I know Martin's opinion of this ) if the little interest you'll make is irrelevent-which it may very well be if you need to be able to access the money without a long notice period (Premium bond access is about 10 days). Otherwise top up an ISA to maximum for the year and put the rest into a instant access savings account that will bring some return and once you have a new job move it into something more long term (or retire if the premium bonds come up with a million in the meantime )
Really it's a matter of a little bit of interest or no interest but a chance to win more than you'd get in interest maybe. Depends on your personality.

missile

Never a great time to be made redundant, but I guess just before X Mas is the worst? Spend your efforts on getting another job and don't tie up your redundancy money as you may need the cash

Aegis

duchy wrote: »

As a short term solution -stick it in premium bonds (Yes yes I know Martin's opinion of this ) if the little interest you'll make is irrelevent-which it may very well be if you need to be able to access the money without a long notice period (Premium bond access is about 10 days). Otherwise top up an ISA to maximum for the year and put the rest into a instant access savings account that will bring some return and once you have a new job move it into something more long term (or retire if the premium bonds come up with a million in the meantime )
Really it's a matter of a little bit of interest or no interest but a chance to win more than you'd get in interest maybe. Depends on your personality.

Personally I'd disagree with this on principle. Your expected winnings with £20k in premium bonds over a couple of months would be more or less nothing, especially since you have to have held them for a full month before they even become eligible for a draw.

Might as well put the money into a high interest savings account like ICICI or Sainsburys (6%+ gross). At least then the money is available pretty much instantly and will be earning interest from day one.

Darth_Calculus

Are you mortgage free? If not, can you overpay on it?

Soprano

Thanks all

Darth_Calculus wrote: »

Are you mortgage free? If not, can you overpay on it?

Not even on the ladder. Planning to be next year.

missile wrote: »

Never a great time to be made redundant, but I guess just before X Mas is the worst? Spend your efforts on getting another job and don't tie up your redundancy money as you may need the cash

Am expecting a slew of jobs in the new year. This 'usually' happens when a lot of people feel like a change. I'm in the process of gathering what will be needed over Christmas.

Aegis wrote: »

Might as well put the money into a high interest savings account like ICICI or Sainsburys (6%+ gross). At least then the money is available pretty much instantly and will be earning interest from day one.

Yes, this is most likely my course of action.

Sounding completely dim, so £20k over 12 months = £1200 at 6%? That would be the best thing to do?

missile

There is no "best" thing to do. That would be the simplest course of action>

You can find higher rates but many have strings attached. You might want to consider an index linked savings cash ISA see http://www.nsandi.com/products/isa/index.jsp
and could consider the NS&I index linked savings certificates see http://www.nsandi.com/products/ilsc/index.jsp