How to invest 3.5k Non Isa achieving 5% Minimum

ecosse206

Hi,

We are currently saving up for our 1st home and have 3.5K saved up so far. I want to invest this saving to grow (capital/dividend) as much as possible over the next year as possible outside of an ISA .I am hoping a minimum of 5% can be achieved!

There seem to be a few 5% accounts out there but they are all regular savers that I can see. Any one any ideas/recommendations?

I am open to a roboadvisor or a stock/bond investment.

Thanks in advance!

xylophone

Assuming that you have never had a Nationwide Flexdirect account,you might each open a Nationwide Flexdirect account.

This will pay 5% for a year on up to £2500 in each account.

You will need to pay £1000 a month from an external source into each account but this is easily managed on a cycle in/out basis.

https://www.nationwide.co.uk/products/current-accounts/flexdirect/features-and-benefits

Do you both have LISAs?

https://www.moneysavingexpert.com/savings/lifetime-ISAs

ecosse206

Thanks but unfortunately all those options have been used up!

Great minds think alike!

AimHigh

If you're looking to buy in around a years time then I'd avoid any stock market investments altogether.

Check out the best current/savings accounts MSE page to see where you can get the best (risk-free) interest rates. But also be wary of opening too many accounts as I believe it can have an impact on your mortgage application, I'm sure others can/will confirm.

Edit: on reflection, with regards to the Nationwide accounts - iirc you can hold both individual accounts and a joint account so perhaps you can open a joint FlexDirect to get 5% on £2500? But again, others can confirm as this might be wrong or you might not be eligible.

xylophone

The TSB Plus offers 5% on up to £1500.

One each and a joint?

https://www.tsb.co.uk/current-accounts/classic-plus-account/

ecosse206

Thanks for all your responses. It's interesting to see that everyone's tactic is using a 5% high street bank savings account and splitting it across multiple. Still only makes £175-80 in a year!

However that doesn't get round the problem that my opening balance is £3500. I can only add £250 to the account monthly (Nationwide) and won't be adding to this account monthly other than dividends...

Dan83

P2P?

I don!!!8217;t invest in anything less then 12%

bhjm

Dan83 wrote: »

P2P?

I don!!!8217;t invest in anything less then 12%

12%

but you did not mentioned the term - 15years?

msallen

bhjm wrote: »

12%

but you did not mentioned the term - 15years?

Depends on the platform but more likely to be between 6 months - 4 years.

ValiantSon

ecosse206 wrote: »

Thanks for all your responses. It's interesting to see that everyone's tactic is using a 5% high street bank savings account and splitting it across multiple. Still only makes £175-80 in a year!

Your criteria was a 5% return. The current accounts recommended deliver 5%, so I'm not sure why this now isn't good enough.

One year is way too short to even begin to think of investing. You need to remain in cash savings, or you could find that your £3,500 is worth substantially less when you want to access it.

ecosse206 wrote: »

However that doesn't get round the problem that my opening balance is £3500. I can only add £250 to the account monthly (Nationwide) and won't be adding to this account monthly other than dividends...

It gets round it perfectly. If you each open a TSB Classic Plus and a joint one, or a joint Nationwide account and one TSB Classic Plus, then you can deposit £3,500 in one go at 5%.

pjcox2005

Higher risk of using p2p so could lose money, but you could benefit from referral bonuses to give artificially high returns for one year.

£1k each at ratesetter will give £150 sign up bonuses plus interest on balances so about 10% return.

£500 each in Kuflink would give c.£375 in bonuses plus £50 interest so 40% return.

Referral board has links.