Best savings advice for £10k plus?

skellington

I am coming into an unexpected windfall of around £10k-£12k that I would like to invest.
I am looking at all the savings accounts on the high street, and currently have more longer term investments.

However this lump sum was just the best place really to store some money and make some (if any!) interest that I could open quickly myself?

It seems interest rates are on the floor, but thought I should ask here for peoples advice on this sum of money?

Thank you

pip895

Premium Bonds are as good as anything - or if purchasing a first property is on the cards + under 40 a LISA such as The Nottingham one at 0.8% + added £1k/year from the government..

grumiofoundation

What are your aims for the money. You say invest but then talk about interest (implying looking at savings accounts)?

^As above if for a (first) house, if you don't have one, a lifetime ISA may well be the best place for 4k this tax year, 4k next tax year.

If you are likely to need the money in short term premium bonds/savings account.

If for longer term stocks and shares, whether ISA, LISA or pension (depending on age/timescale/age want access. 

skellington

Thank you for the advice. I am 47 but do not own a property so I guess the LISA is out.

Premium Bonds sounds interesting.

I did have these a few years ago (5+ years ago) and have seen that Martin keeps mentioning that these are poor returns but maybe that has changed?

I know they are safe as they are government backed, and I guess any prize win, is the equivalent of interest. 

It is indeed a longer term investment, but you never know when you will need it, and I think NS&I is easy access to withdraw without penalties?

pip895

skellington said:

Thank you for the advice. I am 47 but do not own a property so I guess the LISA is out.

Premium Bonds sounds interesting.

I did have these a few years ago (5+ years ago) and have seen that Martin keeps mentioning that these are poor returns but maybe that has changed?

I know they are safe as they are government backed, and I guess any prize win, is the equivalent of interest. 

It is indeed a longer term investment, but you never know when you will need it, and I think NS&I is easy access to withdraw without penalties?

PB are pretty poor really it’s just that everything else (low risk) is even worse sadly🤨

Withdrawals are free, although it pays to avoid pulling money out just before a draw.. 

Alexland

skellington said:

It is indeed a longer term investment, but you never know when you will need it, and I think NS&I is easy access to withdraw without penalties?

As grumiofoundation says above it's worth having a good think about your aims for this money. Most of us split our money between what we might reasonably need in the short term (Cash Savings / Premium Bonds, 1-5 years), medium term (S&S ISAs, etc) and retirement (Pensions, etc). How does this money fit into your overall financial situation?

If you keep all your money accessable as "you never know when you will need it" then you would miss the possibility of higher returns and tax benefits by investing in volatile assets for the long term. However at 47 if you don't own a home could this be the start of deposit or maybe just an emergency cash pot if you don't already have one?

skellington

Alexland said:

skellington said:

It is indeed a longer term investment, but you never know when you will need it, and I think NS&I is easy access to withdraw without penalties?

As grumiofoundation says above it's worth having a good think about your aims for this money. Most of us split our money between what we might reasonably need in the short term (Cash Savings / Premium Bonds, 1-5 years), medium term (S&S ISAs, etc) and retirement (Pensions, etc). How does this money fit into your overall financial situation?

If you keep all your money accessable as "you never know when you will need it" then you would miss the possibility of higher returns and tax benefits by investing in volatile assets for the long term. However at 47 if you don't own a home could this be the start of deposit or maybe just an emergency cash pot if you don't already have one?

I already have high interest assests and investments that are doing ok, so I maybe could add to these in a few months, but I guess opening an NS&I account and putting the money in there for the time being would 'park it' there whilst I think.

Plus it would give me an open NS&I account even if it just has £1000 in the long term.
I didnt want £12k sitting in my everyday account, at least in an NS&I account it has the chance of something and its safe

MX5huggy

NS&I offer ordinary savings accounts as well as Premium Bonds. But presuming you are talking about Premium Bonds holding small amounts for short periods is where they really are bad value. £1000 held for 1 year has a 70% chance of winning nothing. 30% chance of £25 plus a small chance of more. Compared with an interest paying savings account paying 0.5% where you would get £5. 

But if you hold £10k for 1 year in the savings account you would get £50. In PB’s you only have a 3% of winning nothing and a good chance of getting £50 (86%) and a fair chance of £100 (47%). 

https://www.moneysavingexpert.com/savings/premium-bonds-calculator/#result

Albermarle

I already have high interest assests and investments that are doing ok, so I maybe could add to these in a few months, but I guess opening an NS&I account and putting the money in there for the time being would 'park it' there whilst I think.

If I wanted to park the money , I would not use NS&I as the interest rates are poor but even more important they have had a some bad customer service issues . These may be resolved now or maybe not .

You could have a look here .

Best Easy Access Savings | Up to 0.5% Variable | moneyfacts.co.uk