HELP - WHERE BEST TO PUT 150k

tarkers

I suddenly and unexpectedly have 150k to invest (thank you Mr Sugar). I in the Forces am serving overseas & I will not be back in UK until late 08. I don't need the money for anything for at least 9 months.

The winnings are now in my Nat West current account & it will not be easy for me to open another (higher interest) savings account with building societies etc because banks need proof of address etc which I don't have with me.

I have cleared all outstanding loans/credit cards etc (and you can't spend much here!) so I have put 3k into a ISA with NSIP (fortunately I had an ISA already so reinvesting was easy).

The NatWest 90 day rate is pretty poor but how safe are the ICICI & AA banks if I do manage to persuade them to let me open an account with them ?

What would you do ? = any gurus out there with advice for me please ?

Paparatz75

Hi There
I am surprised and disappointed to see that you have no responses so far because I am in a rather similar situation.
I am selling my house in the UK at the top of the market to buy in Canada where house prices are currently rocketing despite the apparant global credit crisis.
I need to know where to put £300K to get the best interest rate, with no risk and instant access as I will need to drip feed funds to the builder over a twelve month period.
Sorry I do not have a solution for you but hopefully if two of us are seeking help someone might be able to give us some sensible guidance.

lisyloo

but how safe are the ICICI & AA banks if I do manage to persuade them to let me open an account with them ?

If they subscribe to the FSA scheme then you are safe up to about £35K (see FSA site for exact figures). They will still want all the usual adress proof though.

9 months is quite a limiting timescale for investing so you're pretty much stuck to savings accounts.

Your options are:

1) highest savings accounts
2) premium bonds (tax free winnings, chance of good luck but probably less than option 1).
3) If you can manage 12 months then look at national savings products as these are tax free and will beat the other options. You can invest £15K in index linked certifcates and the same in fixed interest certificate.
4) Consider paying an IFA. Might be worth your while with that much money.
5) Consider giving someone THAT YOU TRUST a lasting power of attorney to carry out transactions on your behalf. You must fully trust them as this is very powerful.
6) Open a Nothern Rock account as these have extra guarantees from the government.

As you have been lucky then in your posistion I might consider the premium bonds.
Worst case is that you win nothing but your capital is secure.

dunstonh

I am surprised and disappointed to see that you have no responses so far because I am in a rather similar situation.

The op only posted 2 hours ago. This is not IRC. Its a forum.

4) Consider paying an IFA. Might be worth your while with that much money.

IFAs are investment advisers. There isnt much to offer someone who is only looking at savings. Basically getting out moneyfacts and checking the rates. Much of the moneyfacts data is available on the web at no cost.

Also, with passporting rules introduced in November, many IFAs cannot deal with someone who is based overseas unless they come back to the UK. Daft I know. You can come back and hand an application in and get advice but you cannot email the information or talk on the phone. This is an EU directive and not a UK specific one.

Ian_W

If they subscribe to the FSA scheme then you are safe up to about £35K (see FSA site for exact figures). They will still want all the usual address proof though.

I don't think it's a matter of them subscribing [unlike the banking code which is voluntary] to the Financial services Compensation Scheme - I believe that it is a requirement for them to do so in order to get FSA authorisation to take retail deposits. See FSCS website.
So all retail banks in the UK are now covered for 100% of the first £35k though you need to check whether a Bank/BS is covered in it's own right, eg Birmingham Midshires & Halifax are covered as divisions of HBOS so only one £35K cover applies for money with any of them.

That isn't your main problem though as opening an account from abroad might be well nigh impossible if they want you to produce ID. However, over the past few years I've opened accounts with YBS, ICICI, A&L, First Direct and a few more and never once had to produce documents. If you've been an the electoral roll at a settled address for several years they may be able to verify your ID electronically, only way you'll find out is to apply/call the ones you're interested in.

If that fails you're stuck with Natwest though you could get a slightly better rate than the 90day one for £25K if you're prepared to tie it up for 12 months in a BOND. Whilst neither is ideal at least your "winnings" should keep pace with inflation until your return!

BoL - and if your posting requires it -keep your head down!

dweeby

Paparatz75 wrote: »

I am selling my house in the UK at the top of the market to buy in Canada where house prices are currently rocketing despite the apparant global credit crisis.
I need to know where to put £300K to get the best interest rate, with no risk and instant access.

That was exactly the position I was in 1 month ago (except that I moved to rented not to Canada!). So far as I could establish, to meet your requirements it's something like the following:

1. Cash ISA up to your limit which is £3k (plus £3k for spouse, if you have one).
2. High interest instant access bank accounts, eg. ICICI, Icesave etc. Split this between accounts if you want the £35k government protection (or £75k for joint accounts). We chose ICICI and Icesave and have a joint account in each, which protects our £150k.

I don't think an IFA could tell you mich different - but it is worth checking...

Trouble is, you might not be eligable for an ISA if you're not paying UK tax.