5k - don't know what to do with it.

newstart2020

All advice gratefully received

I have 3k saved up in my regular saver account at Barclays i don't get anything from them maybe 44p every 5 months if I'm lucky ! and i have 2k saved up in my money box at home just dropped in change and notes in over the last 2 years , now i have around 5k in total i think its time to actually lock it away somewhere safe.

Should i just put the 5k in premium bonds or is there a account i can put it in to gain any interest. I don't need to access the money atm or having a future plans for it .

Do i make a appointment with the bank to discuss options? or is 5k not a big enough amount for them to take me seriously ?

i have never had a isa or bonds or made any investment before i just want to lock it away safe.

thank you

Barry_Bear

Tanya_Burr wrote: »

Well, I prefer investing it buy having buying gold in small quantities whatever comes in the money I have with me which cannot be invested in any long term contract with banks. Having a discussion with the bank officials is also a good thing

I would not advise gold for small investments. Gold is best as a diversifier, a small allocation when you have a portfolio of other investments. I don't think the OP is in this situation.

If you need the money again at short notice, then NS&I savings and Premium Bonds are safe. But if you are looking to start investing (not just "saving") then consider a low cost index tracking fund within an ISA or SIPP. Note that investing is about a long term plan to maximize your nest egg for 20, 30 or more years from now.

oli356

If you just want to save a bit more on interest and have the money be safe, then look at https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/
The Coventry and Principality can take £500 a month, at 2% interest so much better than what you're getting now. The HSBC/First Direct/M&S obviously give better rates but need current accounts, so more annoying to setup and you can pay In less per month (£250).

Or if you want to dump all of the money in one place and not dripfeed it in, then.... https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/
but interest rates are lower. Though if you don't need it, you could have a 5 year fixed rate account which is just over 2%.

18cc

In my view do one of two things:

1. put the money in Premium Bonds - no interest but possibility of a prize

2. open a Marcus Bank savings account, link it to your Barclays current account and send the money to the Marcus account from your Barclays account via faster payment. No prizes, but currently 1.35% interest a year

grumiofoundation

If you want the money to be safe then investing, whether stocks and shares, gold, peer to peer are not suitable since your capital is at risk.

As mentioned above regular savers can offer a higher interest rate than easy access savers (believe highest currently available Marcus @ 1.35% ).

If you have never had a nationwide FlexDirect account this will offer 5% for 1st year (move money after 1 year).
TSB current account also gives 3% interest on up to £1500.

Also both these accounts currently have referral offers where you can get and extra 2 x £100 for switching to them!

webjaved

I'd stick the money into an account with Marcus. Then read up on Stocks & Shares ISA and decide whether you want to put some money in to that.

xylophone

Have you ever had a Nationwide Flexdirect current account?

If not consider opening one.

You would then deposit £2500 in the account and cycle in/out £1000 a month from an external account in order to get the 5% interest rate for a year.

An easy way of doing the above would be to also open a TSB Classic Plus account, go paperless, deposit £1500 (interest rate at 3%) and set up mid month same day matching SOs for £1000 from TSB to NW and from NW to TSB.

You could then open a Marcus savings account and deposit £1000.

Each month move the interest arising on the two current accounts to Marcus.

At the end of the NW year (when the interest rate drops to 1%), consider your options.

If the above is more work than you want to contemplate, you could just deposit the whole amount in a Marcus account and also consider funding a Virgin regular e-saver from it - £250 a month at 2%.

Other savings rates here

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

blue_vortex

I'm in same position as you. 5k is not worth locking away as the extra pitiful interest is not worth the fact you can't touch it and who knows what may happen in a couple of years. Ford money flexible is 1.35% while their ISA is 1.27%

newstart2020

thanks for all your replies .
I've decided to dump it all in premium bonds as i decided 5k wasn't really worth investing .

bostonerimus

If you have any high interest debt pay it off.
Keep enough cash in the bank for about 6 months spending
If you have cash left over use it to increase your work pension payments
If you don't have a work pension open a SIPP put the money in there is a low cost
multi asset fund like VLS60 or 80 etc

klew356

I am in a similar situ, not making money, I have a rainy day fund, I have bit the bullet and opened a Marcus acc, least then its earning while I decide what to do if anything with it