What to do with £30k in savings

Hannah187

Hello, looking for some advice…

My husband and I have managed to save £30k in our joint current account over the past 5 years. It seems like such a waste to be sitting there doing nothing and earning no interest. We aren’t saving for anything in particular so don’t need to access this money easily but I’m aware it is losing value. Interested to hear some thoughts/advice/ideas… 

Dazed_and_C0nfused

What's your pension provision like?

If you don't mind locking of away until you are in your late 50's you can probably turn your £30k into £37.5k pretty much overnight.

El_Torro

It's good to have some money in savings, as an emergency fund. Investing all your spare money (either in a pension or elsewhere) is not a good idea.

Yes, it's not currently possible to have money in cash that isn't eaten at by inflation. You should still have an emergency fund though.

Bigwheels1111

As rates are changing daily it needs some thinking about.
It looks like the boe will raise the rates a few more times this year.
For easy access Chase have easy access account at 1.5%
Fixed at 2%, for 6 months Shawbrook.
Im looking for 3% plus, and hope for 3 more rate rises in the next 6 - 12 - 18 weeks.
I have 3 pots to invest in  3,4 and 8 months and might spread them out in a stepped manor
6 month, 1 year and depending on rates 2 plus years.
Too get the best rates.

Albermarle

Hannah187 said:

Hello, looking for some advice…

My husband and I have managed to save £30k in our joint current account over the past 5 years. It seems like such a waste to be sitting there doing nothing and earning no interest. We aren’t saving for anything in particular so don’t need to access this money easily but I’m aware it is losing value. Interested to hear some thoughts/advice/ideas… 

There are many new posters asking very similar questions on a regular basis , so worth a skim through the forum. The answer though  is often as mentioned - increase pension contributions .

First thing that comes to mind reading your post, is that are you are happy with investment risk/investing in stocks and shares?

2Sheds

Stick in Chase 1.5 until you make your minds up, every penny counts

steampowered

Albermarle said:

First thing that comes to mind reading your post, is that are you are happy with investment risk/investing in stocks and shares?

Don't ask that question unless you also ask "whether you are happy to accept the risk of inflation eroding your cash savings, year after year after year".

It is impossible to avoid risk. You either accept the inflation risk of keeping money in a bank account, or you accept the investment risk of investing in a balanced portfolio of stocks and shares (or any other form of investment). 

Both risks need to be evaluated and understood before anyone can make a sensible decision with their money.  

Generally speaking - investment risk is higher in the short term. Inflation risk is higher in the long term. 

Albermarle

Don't ask that question unless you also ask "whether you are happy to accept the risk of inflation eroding your cash savings, year after year after year".

Normally I do ask both questions, but maybe was in a lazy mood