£14k to save maximum interest

george4064

Exodi said:

Just to clarify since no-one has touched upon it -

Do you mean 'maximum risk-free interest'? If so a savings account or overpaying the mortgage may be the best option.

If you were willing to take risk, investing in the stock market has typically provided the highest rate of returns.

Otherwise, in line with the above advice, the main question will be:

Do you need instant access to the money or are you able to put it in a fixed account, locking it away for some time (perhaps a year)?

Fixed accounts pay more interest than instant access accounts.

Currently the best instant access acount is around 1.8% - meaning you'd earn about £250 interest in a year on your £14k.
Currently the best one-year fixed accounts is around 3% - meaning you'd earn about £420 interest in a year on your £14k.

You're opening up a can of worms when you mention the phrase 'risk-free', as in reality there isn't such thing as a risk-free option.

Stick it in savings = exposed to risk of inflation and shortfall risk, capital isn't at risk like with an investment.

Stick it in investments = capital at risk. You could get back less than you invested, previous returns is no guarantee for future returns etc....

Stick it in cash under the bed = inflation risk, shortfall risk, risk of getting burgled and risk of house fire with cash up in flames.

redpete

col81 said:

Hi, i have £14k to save and want the maximum return. Can you advise the best way to earn the max interest please?

It depends on:

• How much you are willing to lock away and for how long
• How much risk you are willing to take on the capital volatility (although 'save' rather than 'invest' usually implies no risk)
• How much effort are you willing to put in to get each additional 0.1% 

Then check out the list of top savings accounts on MSE, or the forum threads on notice accounts, instant access accounts or regular savers, or compare accounts on the MoneyFacts site.

solidpro

col81 said:

Hi, i have £14k to save and want the maximum return. Can you advise the best way to earn the max interest please?

If it were me. I'd open a Vanguard account and stick it in a VLS100 ISA. You're not me, so maybe do something else.