Save for 2yrs or longer?

Carolinemjs

A 5 year ISA has just matured and also a 2 year fixed savings account so I have £20,000 to invest. What are your views on going for a fixed term savings account to get the highest interest rate possible.

xylophone

£20,000 to invest.

Do you mean save?

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

Carolinemjs

Well I'd like to do better than any of the savings rates currently on offer....
I'm retired with just my state pension and small amount of earnings (£1500) from part time work. The £20,000 is part of the money left to me by my partner when he died. I subsidise my living costs from this, excluding the £20,000.
I try to do the best I can to keep up with inflation. As you can no doubt tell I am a novice

xylophone

Well I'd like to do better than any of the savings rates currently on offer.

Have you ever had a Nationwide Flexdirect current account?

Or a TSB Classic Plus current account?

Combining the above, you could get a reasonable deal for £4000 for a year.

Other than that, the fixed rate deals are in link above.

CPI inflation is at 2%, RPI at 3%.

Presumably you are looking for no capital risk?

Carolinemjs

I've never had a Nationwide Flexdirect current account but I currently have 2 TSB Classic Plus accs. These are these only ones remaining from several that I had paying reasonable interest.


My main c/acc is with First Direct so I could open a new regular saver there, latest one has just finished.
I'm not totally risk averse but don't know what to do....I've currently got a Sipp with HL and had thought possibly about an ISA but what to invest in that is suitable?


Thank you for responding.

eskbanker

Carolinemjs wrote: »

I'm not totally risk averse but don't know what to do....I've currently got a Sipp with HL and had thought possibly about an ISA but what to invest in that is suitable?

As SIPPs and (S&S) ISAs are both just tax wrappers, the thought process about what to invest in within them is essentially the same, especially once you reach retirement age and the timescales for accessing the funds are more likely to be similar.

Having said that, have you mapped out in more detail when you expect to access the various pots of money? Obviously there are variables such as health, but useful, when considering savings and/or investments, to at least attempt to determine which money might be needed within, say, one year, three years, five years, or more....

Carolinemjs

I haven't made any plans about when I'll need access to my various small pots of money - its clearly something I need to give some thought to.

As I have no family or dependents I've always considered that equity release will give me financial security until I turn up my toes.

xylophone

I am assuming that both TSB accounts hold the maximum £1500 for payment of interest.

You might open a Nationwide Flexdirect account with £2500.

You could then set up matching mid month same day SOs for £1000 from TSB to NW and from NW to TSB.

You might consider a contribution to the SIPP - when do you intend to access the SIPP?