£40k sitting in current accounts, what to do?

LandanLad

Hi guys,

I have 40k in a few current accounts, some earning a few quid a month interest a month... What would be the best option for me if I can lock this away for a year?

TIA
LL

xylophone

http://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

RedMonty

Just in case you don't already have one.

Some people like Vanguard's LifeStrategy ISA offers. Some of the lowest charges on the market, broad spread of underlying investments and you can take money out any time. This is a stock and shares ISA so carries some risk you may get less out than what you put in. Buying through Vanguard's own UK website will get you lower charges than through other investment platforms.

40K in any bank account is guaranteed to make a loss in 1 year compared to UK inflation rate of 3% so you should be aiming for more than 3% in any year. Make that 40K work for you.

Disclaimer: 1. My own ISA is with Vanguard LifeStrategy 60%. 2. Took me a lot of research to get to this point. It isn't perfect but I want a simple life. 3. I am a noob and don't take my words for granted on anything.

eskbanker

RedMonty wrote: »

Just in case you don't already have one.

Some people like Vanguard's LifeStrategy ISA offers. Some of the lowest charges on the market, broad spread of underlying investments and you can take money out any time. This is a stock and shares ISA so carries some risk you may get less out than what you put in. Buying through Vanguard's own UK website will get you lower charges than through other investment platforms.

40K in any bank account is guaranteed to make a loss in 1 year compared to UK inflation rate of 3% so you should be aiming for more than 3% in any year. Make that 40K work for you.

Disclaimer: 1. My own ISA is with Vanguard LifeStrategy 60%. 2. Took me a lot of research to get to this point. It isn't perfect but I want a simple life. 3. I am a noob and don't take my words for granted on anything.

Investing in a S&S ISA (or any other form of investment as opposed to saving) is indeed suited to many, but in the case of OP stating "I can lock this away for a year" it seems something of a long shot that investing will be an appropriate answer, as this should only be considered for those with a horizon of at least five years (and preferably 7-10+) and with a readily-accessible emergency pot held in cash form elsewhere, as your research should have identified....

kidmugsy

Have a bit of fun: bung it into Premium Bonds. If you spend money on the lottery, stop.

Alexland

Is there any particular reason you can only lock this away for a year? Do you have a particularly large expense in the near future? If not then could some of it be invested for 5+ years? Short term cash can be recycled around 5% regular saver accounts if you are willing to do the legwork.

sixpence.

Alexland wrote: »

Is there any particular reason you can only lock this away for a year? Do you have a particularly large expense in the near future? If not then could some of it be invested for 5+ years? Short term cash can be recycled around 5% regular saver accounts if you are willing to do the legwork.

Are you allowed to have more than one regular saver? Most of them only going up to 3k per year and you have to drip into them.

jimjames

sixpence. wrote: »

Are you allowed to have more than one regular saver? Most of them only going up to 3k per year and you have to drip into them.

Yes you can. I have 3 but there are more available

Broadwood

Interest rates are anyone's guess over the next 5 years.

I'm waiting to see if the B of E raise base rates this month before putting a spare lump sum into a 1 year bond.

BLME are currently "expecting" to pay 1.95 % on their sharia 1 year bond - and this isn't far short of longer-term bonds which by then might have been overtaken by shorter-term variable rates.