If you had £40k, what would you do with it?

MrDliv

Hi all, 

I have above to save/invest and unsure what to do with it. 

I've looked at the possibility of splitting - for example, bonds 20k, ISA 20k. It won't be a long-term situation as I'll eventually be using it for house renovation, however in the short term I'd like my money to 'work for me ' as the saying goes. 

Any suggestions warmly welcomed.

Thanks 🙏🏻

wmb194

MrDliv said:

Hi all, 

I have above to save/invest and unsure what to do with it. 

I've looked at the possibility of splitting - for example, bonds 20k, ISA 20k. It won't be a long-term situation as I'll eventually be using it for house renovation, however in the short term I'd like my money to 'work for me ' as the saying goes. 

Any suggestions warmly welcomed.

Thanks 🙏🏻

https://moneyfactscompare.co.uk/savings-accounts/

Stargunner

MrDliv said:

Hi all, 

I have above to save/invest and unsure what to do with it. 

I've looked at the possibility of splitting - for example, bonds 20k, ISA 20k. It won't be a long-term situation as I'll eventually be using it for house renovation, however in the short term I'd like my money to 'work for me ' as the saying goes. 

Any suggestions warmly welcomed.

Thanks 🙏🏻

As you are only looking for a short timescale, you shouldn’t be investing it, as you could easily end up with less than you started with  Put it in the the best savings accounts, making use of tax free products like ISA’s if you need/can do, to prevent uou paying tax on your interest.

400ixl

Unless you are going to be tax on the interest it is not worth looking at ISA's as you are too short term for a S&S ISA and a cash ISA will have no benefit unless a tax haven is required.

Finding the highest paying savings accounts you can and if you have a partner, splitting it across you both to avoid interest tax.

jimjames

400ixl said:

Unless you are going to be tax on the interest it is not worth looking at ISA's as you are too short term for a S&S ISA and a cash ISA will have no benefit unless a tax haven is required.

A cash ISA might actually be the highest interest rate at the moment so not one to dismiss out of hand. Only £20k can go in before April but remainder could be added after if rate still best.

Albermarle

I've looked at the possibility of splitting - for example, bonds 20k, ISA 20k.

Remember that the same type of savings account are available as an ISA or not as an ISA.

So first you have to decide whether you want an easy access account with a variable rate, or a fixed term/rate product.
Then decide whether you want that as a cash ISA or not, ( largely depends on your tax situation and how much money you have. ) although of course you can not add more than £20K per tax year to an ISA.

solidpro

Sounds like the same amount of money you should keep easily accessible in case of emergencies. I've put £27k, split in a variety of £1200-£5000 savings accounts that pay out on average about 3.5% annually and I can withdraw in seconds.

Bigwheels1111

I keep near that, 20k in an easy access ISA with Chip, The rest in Easy access.

I then fund 14 regular savers between £50 and £500 a month.

I use First Direct to make the standing orders. As can go overdrawn for the day at no cost, as long as account is in credit by 23.45pm. So on the 1st of the month I go 3.5k into the red for a few hours and then just move the money from savings to cover it.

Thus maxing the savings proffit.

My interest ranges from 4.86% to 8%.

Beddie

You already have a sensible plan, use the link above to moneyfacts to check the best rates. £20k into an ISA and the rest in savings. You can use fixed rates or easy access, whatever suits you better.

MEM62

If you had £40K, what would you do with it?

£15K into my pension
£5K into my share ISA
£5K into my cash ISA
£15K holiday   

But, of course, that is relevant to my circumstances and wants.   

Middle_of_the_Road

MEM62 said:

If you had £40K, what would you do with it?

£15K into my pension
£5K into my share ISA
£5K into my cash ISA
£15 holiday   

But, of course, that is relevant to my circumstances and wants.   

That's a proper MSE holiday!