Help with investing £100k

Seekingfinancialhelp

Hi, I have a large sum of money that I need to invest, I'm risk adverse but would obviously like to make as much interest as possible.  I went into my bank and spoke with a member of staff but came out more confused than I went in. I struggle to process financial information so am finding it difficult to decide where to invest. I initially thought i'd put most of it in the highest paid interest rate bank possible but I'm now confused with Isa's and more. I was hoping someone could help and say if I was you, and didn't want to risk losing any money, I'd do ..... I don't have anyone to really ask for advice in this way so hoping someone can help a little, or a lot. Any help would be greatly appreciated 

El_Torro

One way to go is to find the two best easy access savings accounts and put £50k in each. This article will help you find the right account / bank to save with: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#easyaccess

In the long term you'll make more money by investing, especially if you can tie up some of the money for 10 years or more. The best way to invest is in a pension or Stocks & Shares ISA. The nature of investing though is that they go up and down, you will lose money in some years. You only really lose money if you cash in the investment though. The long term trend (if you invest sensibly) is up, which is why you should invest for 10 years or more.

If you're quick you can put £20k in a Cash ISA before the new tax year starts, and another £20k in a Cash ISA on or after the 6th of April. This will reduce your tax liability. 

Bigwheels1111

How much do you earn, above or below £12,570.
If above you get £1000 PSA tax free interest.
If you earn over 50k it’s £500 interest tax free.
If you are a low earner like me you get loads of tax free allowance.
I can get up to £18,570 tax free interest.
If you will pay tax an isa is your best bet.
Do you need access to the money in 1,2,3,4 or 5 years.

Once we know a few figures more targeted help can be provided.

I went with 5 and 7 year fixed savings, with annual payout of interest for income.
Plus kept an emergency fund in easy access, which is then used to fund 12 regular savers.
Totalling 3k a month.

£12,570 personal allowance, can be earnings, pension or interest. Tax free
£  5,000 Starter savings rate, tax free interest.
£. 1,000 Personal savings allowance.

No income at all except savings interest £18.570 is tax free.
4k earnings leaves £14,570 interest tax free.
£15k earnings leaves £3,570 tax free interest.
£30,000 earnings leaves 1k interest tax free.

Bigwheels1111

You may of heard FSCS protection for 85k per account.
This protects your savings if bank goes under.
But does not protect interest above the 85k
So at 5% interest paid away each year, I would not put more than 80k in any one account.

Seekingfinancialhelp

Seekingfinancialhelp said:

Hi, I have a large sum of money that I need to invest, I'm risk adverse but would obviously like to make as much interest as possible.  I went into my bank and spoke with a member of staff but came out more confused than I went in. I struggle to process financial information so am finding it difficult to decide where to invest. I initially thought i'd put most of it in the highest paid interest rate bank possible but I'm now confused with Isa's and more. I was hoping someone could help and say if I was you, and didn't want to risk losing any money, I'd do ..... I don't have anyone to really ask for advice in this way so hoping someone can help a little, or a lot. Any help would be greatly appreciated 

Thank you for advice. I've just quickly opened an online ISA

Seekingfinancialhelp

Bigwheels1111 said:

How much do you earn, above or below £12,570.
If above you get £1000 PSA tax free interest.
If you earn over 50k it’s £500 interest tax free.
If you are a low earner like me you get loads of tax free allowance.
I can get up to £18,570 tax free interest.
If you will pay tax an isa is your best bet.
Do you need access to the money in 1,2,3,4 or 5 years.

Once we know a few figures more targeted help can be provided.

I went with 5 and 7 year fixed savings, with annual payout of interest for income.
Plus kept an emergency fund in easy access, which is then used to fund 12 regular savers.
Totalling 3k a month.

£12,570 personal allowance, can be earnings, pension or interest. Tax free
£  5,000 Starter savings rate, tax free interest.
£. 1,000 Personal savings allowance.

No income at all except savings interest £18.570 is tax free.
4k earnings leaves £14,570 interest tax free.
£15k earnings leaves £3,570 tax free interest.
£30,000 earnings leaves 1k interest tax free.

Hi, thank you for your time and advice. I earn just under £52k PA, single parent no other income of any sort. I would need access to approx £20k as my job isn't very secure.

xylophone

You can add another £20,000 to an ISA from April 6.

How old are you?

What kind of pension do you have?

Seekingfinancialhelp

xylophone said:

You can add another £20,000 to an ISA from April 6.

How old are you?

What kind of pension do you have?

Hi, I'm 50 and don't have the best pension, I currently pay around £500 per month into a money purchase plan with 5% paid from employer for the last couple of years. Believe I have around £33k in an old pension that I've not done anything with for years

Bigwheels1111

ISA for savings is the best plan.

Best rates today, select how many years and then rate order. look at how many day interest is lost for early access.

If you dont mind a rate that is flexable, Chip do 5.1% easy access ISA.

That would work if you may need access in a hurry without penalty.

https://moneyfactscompare.co.uk/isa/fixed-rate-isas/?quick-links-first=false

A lot of people on here say pay more into pension.

This lowers your tax band as well, not sure as do not have a private pension.

But from memory the GOV add 20% to whatever you pay in.

dunstonh

Seekingfinancialhelp said:

xylophone said:

You can add another £20,000 to an ISA from April 6.

How old are you?

What kind of pension do you have?

Hi, I'm 50 and don't have the best pension, I currently pay around £500 per month into a money purchase plan with 5% paid from employer for the last couple of years. Believe I have around £33k in an old pension that I've not done anything with for years

As long as the money is for after age 57, then pensions trump ISA in terms of which is best.     The tax relief you receive as a basic rate taxpayer gives you a 6.25% boost over ISA assuming you are a basic rate taxpayer in retirement. 

xylophone

Hi, I'm 50 and don't have the best pension, I currently pay around £500 per month into a money purchase plan with 5% paid from employer for the last couple of years. Believe I have around £33k in an old pension that I've not done anything with for years

What kind of pension is the old pension and where is it?

Have you obtained a state pension forecast?

https://www.gov.uk/check-state-pension

You mention that you are a single parent - your offspring is still in education?