2 year Investment

hareng

What is the best risk free way to invest our £33400 Endowment that matured last November.
Will be needed by April or May 2021


I have had a look around on ISAs, Premium Bonds to bank deposit accounts and quite frankly its not worth the hassle for the pultry interest rates, is there something i have missed?


Have opened an ISA at Coventry 1.9% AER but small print in sent paperwork states 28 months. Cash in early -£135 and minus 3 months interest with probably a reduced % rate would be lucky to receive £600 for the max £20k invested.

StevenGude

Plenty of bonds, such as Axis, paying circa 2.25% for 2 years.
Alternatively there's Marcus @ 1.5% easy access.

The new Birmingham 1 year fixed is 2% too

Dazed_and_confused

Birmingham Midshires currently have a 2% account fixed for a year.

That might be more suitable for you and you can then review again in a year's time.

masonic

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#sharia

2.45% is currently the best available rate. You don't state your marginal rate of tax or how much personal savings allowance you will have available. Whether you are part of a couple, etc etc

eskbanker

hareng wrote: »

Have opened an ISA at Coventry 1.9% AER but small print in sent paperwork states 28 months. Cash in early -£135 and minus 3 months interest with probably a reduced % rate would be lucky to receive £600 for the max £20k invested.

If you're suggesting that they're being underhand or misleading about the term in some way then I'd counter that the maturity date couldn't be much clearer at https://www.coventrybuildingsociety.co.uk/consumer/savings-accounts/cash-isa.html where the product overview is titled as "Fixed Rate ISA (77) 31.05.2021" all in the same font size, immediately followed by "1.90 % Tax-free^ p.a./AER* (Fixed until 31.05.2021)".

hareng

Either way no good to me, may require 1 or 2 months before 31 May.
Draw out early your penalised approx £135 (120 days interest)
Poor deal approx £600 for going without £20k for 2 years, they will be making £180k

StevenGude

Put 30k in one of the 2 year fixes (axis, bank of India etc) and your looking at around £1300 interest over the 2 years using the calculator on MSE saving section.

eskbanker

hareng wrote: »

Either way no good to me, may require 1 or 2 months before 31 May.
Draw out early your penalised approx £135 (120 days interest)
Poor deal approx £600 for going without £20k for 2 years, they will be making £180k

Have you funded it yet?

Presumably the fact that you've posted seeking ideas means that you're not past the point of no return, so if you haven't yet forwarded the money (or if you're still within the 14 day cooling off period) then you can still change your mind and use a product that fits your required timescale, such as an actual two-year fix (Charter Savings Bank has one paying 1.95%).