Investing ideas please!

CashMoney

Hi firstly a bit of background about my financial position. I am a Santander customer for the past 4 years or so. I have an ISA with around 45k paying 1.5% and a 123 account currently at around 20k balance also paying 1.5% (for now). I also have 2 children's savers for my kids paying 3% on balances of around £1500 and £1200. I intend to keep these accounts as they are until the rate drops in May but wanted some ideas as to how you guys would go about moving from Santander once the rate drops and where you would recommend moving this money to.

I have thought about what a few people have suggested on these forums about moving most of the money from 123 account and placing it into a Marcus account and then downgrading the 123 account into a lite account. If this is correct should I do this now or wait until May?

I have also thought about moving to other banks like Metro bank as they seem to have good customer service and are also offering a instant cash ISA paying 0.90% and a instant access saver paying 0.55%. Can someone advise on whether this would be a good move or are there better options for me?

Sorry about the long question, would love to hear people's ideas and suggestions.

Thanks!

Malkytheheed

So you have come to the wall of risk/reward in your personal finnance. And will have to make a descision.
Personally I would take 50% of your money out of the (pitiful) savings account (1.5%) And put it into stocks and shares. Something nice and diversified like some FTSE 250 index and some bonds, maybe even S&P 500 index (my favourite but maybe not right just now). You might think it's risky but over time, it's really not. The stock market always goes up over time (for over 100 years). Yes there will be dips but overall you would be much better getting 5-20% per annum (plus dividends) than chacing a 0.1% here and a 0.05% there with bank accounts. Get it invested and get it working properly for you. Also it's fun.
My money has more than tripled over the last decade where I would have made like 1% in a bank account. It's a no brainer. No risk. No reward. Cash is worthless, start collecting real assests and not just pitiful interest.

CashMoney

Hi Malky, thanks for the reply. I do have investments in some stocks worth around 3k which I have held for around 18 months. They are in a range of different sectors from tech to fashion. To be honest the question I asked was mainly for advice on savings accounts and current accounts, at this moment in time I don't have any intention of investing anymore in stocks. Thanks once again.

Malkytheheed

Fair enough, just replying to "Investing ideas please!" lol.
Money in the bank is not investing. It's sitting.

Marcus account takes 60 seconds to open. so thats a good option. I keep some money there.

CashMoney

Ah ok my bad Malky, does anybody else have any suggestions/advice? I was expecting a range of comments but only the 1 lol

cloud_dog

What are the savings for?

Do you need almost immediate access to all of the money?

Have you considered creating a savings bond leader with fixed rate accounts?

CashMoney

Hi Cloud, I am saving up to put the money on top of current house value to move to a nicer area. In terms of whether I need immediate access depends on my mother-in law who lives with us and is very poorly. Without sounding too rude, we are waiting for her to pass away before we move as she doesn't want the movement hassle and has asked us to move once she goes so we would like to respect her wishes. Doctors have said she has maximum 5 years to live. For this reason i have always put money into an easy access account as I never know when I might need the money.

cloud_dog

The only other option I would suggest, under the circumstances, would be to look to use 'Notice' accounts, you may be able to get better rates and based on the length of time selling/buying a properties can take may be useful.

CashMoney

I don't fancy any of Martin's options on notice accounts as I have never heard of any of them (Moneybox, ICICI bank, secure trust bank and BLME). Don't mind putting it into a "big name" if anyone has any suggestions?

colsten

CashMoney wrote: »

I don't fancy any of Martin's options on notice accounts as I have never heard of any of them (Moneybox, ICICI bank, secure trust bank and BLME). Don't mind putting it into a "big name" if anyone has any suggestions?

The fact that you never heard of a bank or savings provider shouldn't deter you. All that counts is whether your money has FSCS protection (all of the above do), and that they offer accounts where you live (not all of the above might, depending on where you live).

Be aware, too, that you are after savings, not investments. Two very different approaches. Savings is simply about picking the accounts that you like best - it's down to you what criteria you use. Personally, I would just go for FSCS-protected highest AER accounts, with the most suitable timeframe (instant, notice, fixed term) for my needs, and mine must offer online application & management. YMMV. Nobody can tell you what you like.

DCFC79

OP maybe you should post your question Savings & Investment board.