£30,000 savings, dunno what to do with it!

jimjames

DiggerUK wrote: »

I get dumbfounded at peoples attitude, when they don't get rid of debt; and paying off the mortgage will secure the roof over your head forever.

There seems very little point paying off debt when you can get a better return on that money than you're paying in interest. So I'm happy to run 0% credit cards and 2% mortgage but invest in S&S rather than overpaying them. I guess getting income from investments is an alien concept because gold pays nothing unlike S&S investments.

pharmice

Thanks for all your suggestions. I don't intend paying off the mortgage with my savings, my current mortgage rate is ~2% with 14 years left on it. I'm not working at the moment as I'm a full-time student who is living on some of the savings, the £30,000 is separate from my saved up living expenses which should take me till June when my course ends, and I hopefully, start working again.

I already have 4 0% credit cards with available credit of over 20k, and a balance of 3k. My immediate need is some sort of bank account or shares investment that will accommodate the whole £30,000 and pay me a monthly return. I'm currently looking at peer2peer lending, but the risks seem huge.

Eco_Miser

pharmice wrote: »

. My immediate need is some sort of bank account or shares investment that will accommodate the whole £30,000 and pay me a monthly return.

NS&I Income bonds will do that, giving you around £18.75 a month.
Or you could spread it over several accounts and get around £75 a month.
Or you could open an S&S ISA for half the money, and put the rest in after April 6th and invest in a fund that pays dividends monthly (but your capital is at risk of a short term drop just when you want the money back) - that option is also available without the ISA, meaning just a single transaction to put the money in.

Or you could use part of it to spend as though it were your monthly income, and put the rest of it somewhere that pays out less frequently, eg quarterly, but at a higher rate.