£6k where to invest

xylophone

You might open a Nationwide Flexdirect current account and a TSB Classic plus current account.

Deposit £2500 in NW and £1500 in TSB.

Set up a same day mid month SO for £1000 from TSB to NW and from NW to TSB.

Deposit the remaining £2000 in an online savings account.

Pick up the monthly interest.

Set up a NW Flex RS and deposit up to £250 a month.

At the end of a year, think again about where to deposit the money in the NW current account as the preferential rate ends then.

ryannnking

If you want to grow your money a little bit whist coming up with a strategy and deciding what to invest the £6k in, you can open up a Marcus account and earn 1.5% interest.

Ryan

Zero_Sum

Zopa IFISA?

DrSyn

Sayings I found true. Keep them in mind:

1. The higher the return the greater the risk of losing your money.

2. If it looks to good to be true, its because you don't understand the risks involved. So leave it alone.


"Rules of thumb". They work for me as a first filter. You might find them of use.

With respect to the present 8/1/19.


Low Risk
Savings in a bank or building society account covered by the FSCS protection scheme.
Best 5 year fixed savings account = 2.7%.
.

Medium Risk 4% (the yield on the FTSE 100)
.


High Risk above 5% (i.e. FTSE's 4% x 1.25 ). Probably best avoided,

Very High Risk 8% (i.e. FTSE's 4% x 2)This is to good to be true.


In answer to your post
https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/
https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

Snow_Dog

£2500 in a Nationwide flex account - 5% for 1 year

£1500 in a TSB account - 5%
£500 - float for moving between accounts to make minimum payments/pcm
£500 - vanguard lifestrategy s&s, maybe VLS40 (safe but lower average return)
£1000 - assetz capital ifisa, 5.1% in the 30day, use a referral link and get a bonus £100 after 12 months making final likely return 15%.


That is what I would probably do in those circumstances.


£4.5K - totally safe with £4K earning 5%
£500 - safeish, could go down, could go up.
£1000 - riskiest in terms of untried in downturn etc but potential for 15% return.


Just my tuppence worth.

[Deleted User]

Hi all,

I am interested in Vanguard funds. Can you elaborate more, which one you meant by saying Vanguard Life Strategy S&S?
Also, VLS40 would be Vanguard Life Strategy 40% Equity, is that correct? Is there any particular reason, why 40% equity fund would be best?

Snow_Dog

pioruns wrote: »

Hi all,

I am interested in Vanguard funds. Can you elaborate more, which one you meant by saying Vanguard Life Strategy S&S?
Also, VLS40 would be Vanguard Life Strategy 40% Equity, is that correct? Is there any particular reason, why 40% equity fund would be best?

Vanguard life strategy is a fund.


VLS40 is 40% equity, 60% bond
VLS60 is 60% equity, 40% bond
VLS80 is 80% equity, 20% bond


The higher the equity the more likely the volatility, so you might make 20% on VLS80 or you might lose 20%. VLS40 is much less likely to swing so much.


You pick your risk level and choose accordingly.


if your risk level is very very low, stick it in a bank

daveyjp

I wouldn't bother with a VLS for a single £500 investment for a short period. Remember there are ongoing charges which reduce the level of return.

Simple savings accounts as outlined in #12 are the way to go.

If you want something different put £500 in Premium Bonds. A single £25 win over a year is 5% return. Daughter has a few thousand bought as gifts over the years and she gets 3-4 small wins a year.