Better rates than standard savings?

vigman

Hi

I'm 64 retired on ill health grounds and on a fairly small occupational pension. I can't take big risks but am fed up with the miserable ISA and savings rates

I've looked at S&S ISAs and the Cavendish platform seems good BUT needs 5 years' minimum investment time which isn't great at my age and health!

I didn't do particularly well with individual share purchases and can't put that work in now or risk a big loss.

Apart from the small higher interest savings accounts is there anything relatively safe paying say 3-4% pa for c £40,000 or more if I moved ISA funds out?

I know this is like asking where the magic money tree is or in this case the magic money shrub!

TIA

Vigman

EachPenny

vigman wrote: »

Apart from the small higher interest savings accounts is there anything relatively safe paying say 3-4% pa for c £40,000 or more if I moved ISA funds out?

There are various current accounts paying 3% or more, but on limited amounts so you'd need to spread your money around and might not be able to place all of that money at that rate. There are also various terms and conditions to follow in order to get the rates, but there is a lot of help and detail of what to look out for on the forum.

Start out with the best current account article to get an idea how it works.

With some of the best current accounts and linked regular savers you should be able to get £40k earning at least 3% if you are willing to put in a bit of time

YorkshireBoy

You mention "I", but are there two of you?


If so, with a bit of work, your target should be achievable. It'd be a bit harder if you are just "I".

vigman

YorkshireBoy wrote: »

You mention "I", but are there two of you?


If so, with a bit of work, your target should be achievable. It'd be a bit harder if you are just "I".

Thanks for that. It is indeed "we"! We have the three Santander 123 accounts and I'm looking into the Tesco accounts.

I was wondering if there were any other investments which paid a bit more than ISAs etc for larger amounts and which had minimal but obviously not nil risk

Vigman

YorkshireBoy

If you're staying in cash, nearly £25K of the £40K could be making an aggregate 4% AER with Nationwide, Tesco, and TSB (10 accounts).

The other £15K could be earning a 'clean' 2% AER with 3 accounts at either Lloyds or BoS. You'd then drip feed this into 5%/3% regular savers over the course of a year to get an aggregate (circa) 3.5% AER, netting you around 4% overall.

Of course there's some work involved to set it up (and £7.5K at Nationwide would stop making 5% after a year), but the alternative is just over a quarter of the return and an easier life. Your choice really.

jimjames

vigman wrote: »

I've looked at S&S ISAs and the Cavendish platform seems good BUT needs 5 years' minimum investment time which isn't great at my age and health!

I'm not sure if you've misunderstood S&S ISAs. Yes they are aimed as long term investments but there is no minimum term, you could cash out a week later if you so desired.

If you're looking for income then they'll give the sorts of numbers you're looking for and with an invest and forget option unlike many of the current accounts/savers than need regular checking.

Not sure about health issues impact but at your age you could still have 20+ years of retirement ahead so investments may still be an option. I guess it depends what the need for the money might be in under 5 years. Also remember that you don't need to put all your money in the same thing, splitting half and half cash/S&S will give lower risk.

vigman

Thanks everyone. Health issues again stopped a quick reply.

I have to say that ditching and switching plus setting up DDs for each account is getting harder for me to keep on top of.

I may well look into a medium risk S&S ISA.

Vigman