75K Bond maturing April

Bogof_OAP

I have a 5-year Vanquis bond maturing in April that is currently giving me ~£170 monthly income.  I am considering buying a small flat outright as I don't think I could get anywhere near that sum if I re-invest in another bond, and I am not a risk taker on the stock market.  I know becoming a landlord is risky too, before anyone points that out!  So before I make enquiries (I have already found two properties that would fit the bill, and have a friend who might be interested in renting off me), is there any vague possibility of putting the capital back into something that would come anywhere even close to paying me the return that I have been getting?

ctdctd

(£170*12)/75000 gives around 2.7% a year.

Current best 5 year bond is 2.1% so £131.25 per month - is that close enough?

https://moneyfacts.co.uk/savings-accounts/fixed-rate-bonds/

colsten

ctdctd said:

(£170*12)/75000 gives around 2.7% a year.

Current best 5 year bond is 2.1% so £131.25 per month - is that close enough?

https://moneyfacts.co.uk/savings-accounts/fixed-rate-bonds/

Plus a potential one-off bonus of £200 if going via Raisin https://www.raisin.co.uk/bonus/

Note that interest is taxable income so unless OP has no, or very little, other income, tax will be due on the current and on future interest.

Dazed_and_C0nfused

The op would need to have taxable income (including this interest) of at least £17,251 before any tax is actually payable on savings interest in the current tax year.

Quite possible £18,501.

Bogof_OAP

Thanks everyone that's brilliant.  I will look into it immediately.  I have a state pension and a fairly modest work pension so I am a taxpayer.  No getting away from that - I suppose ISA rates are total rubbish nowadays, I gave up on those about four years ago.

Bogof_OAP

Anyone know anything about RCI bank?  I was really looking for monthly interest, and they are offering 1.9%.  I could make the capital up to £85K from other savings that are doing nowt, which would give me £134 a month less tax.  Wouldn't want to chance a dodgy outfit though!

Dazed_and_C0nfused

Basic rate taxpayers can have upto £5,999 savings interest taxed at 0%.

The more basic rate tax you are paying on your pensions the smaller the 0% tax bands get until they eventually drop to £1,000 taxed at 0%.

Unless you become a higher rate payer when it drops to £500.

Ceme3000

Bogof_OAP said:

Anyone know anything about RCI bank?  I was really looking for monthly interest, and they are offering 1.9%.  I could make the capital up to £85K from other savings that are doing nowt, which would give me £134 a month less tax.  Wouldn't want to chance a dodgy outfit though!

Well they are owned by Renault your 85K is protected. 
https://www.moneysavingexpert.com/news/2019/03/rci-bank-secures-uk-banking-licence---meaning-savings-are-now-pr/

Bogof_OAP

Thanks again.  I am not very clued up on tax.  Every year I get a letter from HMRC telling me what they think I owe (it's never the other way round!) and that they will adjust next year's tax code to reclaim it.  I don't have to fill in a tax return, thank goodness.  Just thought that if I bought a property I would have to pay tax on the income, plus council tax and maintenance costs, plus the worry of bad tenants, so it probably isn't going to be a go-er.