How to invest £70k

datdatlondon

Hi all,

First post here after reading some tips on savings. My wife and I have around £70k we would like to save, with easy access to the savings if possible. We may need the cash in a year or sooner.

Does anyone have a tip on the best way to do this?

I realise my wife and I can open multiple accounts and spread our cash, but I am a bit overwhelmed about where to start.

We don’t want to switch our bank account or open a bank account that involves paying in a minimum amount. So the most simple way possible please.

Any help would be great, thank you!

Eco_Miser

NS&I Income Bonds pays 1% on up to a million.

Tesco current account pays 3% on up to £3000 - you can have two accounts each, no additional payments required.

Note that making payments in is not really a problem when you have multiple accounts and £70k. The money just goes round and round.

datdatlondon

Ok thank you.

So can you transfer money in and then just move it back the next day? Or does it have to stay there all month to qualify as 'paid in'?

Jo_Blogs

• Easy access savings: allows withdrawals
  • Post Office – 1.01%
  • NS&I – 1%

Info here: http://www.moneysavingexpert.com/savings/savings-accounts-best-interest

Jo_Blogs

datdatlondon wrote: »

So can you transfer money in and then just move it back the next day?

Yes, that works fine

datdatlondon

Ok great thank you, will look into that

nbrewitt

If you're likely to need the money in a year, why not buy some Premium Bonds with £50k and put the rest in Income bonds with NS&I

jimjames

datdatlondon wrote: »

So can you transfer money in and then just move it back the next day? Or does it have to stay there all month to qualify as 'paid in'?

Think about it logically. The accounts that have this requirement are generally current accounts where people have their wages paid in. Does the bank specify that you can't spend your wages for a month after paying them in?


Definitely worth looking at current accounts and regular savers if you want the best rates. More effort but you'll get far more than a savings account or cash ISA. Depending whether you need all the money in a year or only part of it might determine if other options like investments are worth looking at for some of the amount.

Eco_Miser

datdatlondon wrote: »

So can you transfer money in and then just move it back the next day? Or does it have to stay there all month to qualify as 'paid in'?

If it's been paid in, it's been 'paid in'. If the requirement was to leave it for a month, the T&Cs would say so.

Consider this:
You have £5000 in an account, you pay in £1000, and withdraw £1000 the same day. Was it the same £1000? Or did the £1000 you paid in stay in the account for the next 4 months, while you withdrew (and replaced) the other money in turn.
In practice it makes no difference, and often on my bank statement transactions on the same day are listed in a different order to that in which I actioned them.

Oh yes, you can withdraw the money seconds after it's paid in - or you can withdraw it first (assuming you have a large enough balance).

MyOnlyPost

datdatlondon wrote: »

Ok thank you.

So can you transfer money in and then just move it back the next day? Or does it have to stay there all month to qualify as 'paid in'?

If you have 2 accounts each with £5k in you can set up a standing order on each for the same date each month so the money just swaps accounts and your balance doesn't go down. So you don't even need to move the money manually every month

Pincher

It takes a few days getting money out with NS&I, because they use BACS.

No bad thing. These phone scams rely on a quick transfer.