Help with a investment possibly Hampshire

Isla1972

Hi 
Have a large inheritance invested for my future im 53  (with Quilter) stocks and shares Isa
paying 7% into my pension which my work match 
mortgage free 
no family 
Tesco shares £11k approx 

Now I have £20k to invest 
£10 in Atom 1yr 
£5k in a virgin 2.9% higher rate ended 
£2k in everyday virgin account which my wages go into and £300 go to my bill account which get paid off by DD

Need advise where to put the
£20k 1or 2 yr
£5k for saving but there if I need a purchase/rainy day

any ideas? 

im looking at Hampshire easy access for a acvount for the £5k 4%
and maybe even the fixed bond for the £20k 4.25%

any improvement on these please

Albermarle

Although your thread title says you are looking for help with investments, it seems you actually want help finding a savings account ( savings and investments are different).
This is a good site.
Best Easy Access Savings Accounts | Up to 4.84% AER

Isla1972

Thank you 

Ch1ll1Phlakes

Isla1972 said:

Hi 
Have a large inheritance invested for my future im 53  (with Quilter) stocks and shares Isa
paying 7% into my pension which my work match 
mortgage free 
no family 
Tesco shares £11k approx 

Now I have £20k to invest 
£10 in Atom 1yr 
£5k in a virgin 2.9% higher rate ended 
£2k in everyday virgin account which my wages go into and £300 go to my bill account which get paid off by DD

Need advise where to put the
£20k 1or 2 yr
£5k for saving but there if I need a purchase/rainy day

any ideas? 

im looking at Hampshire easy access for a acvount for the £5k 4%
and maybe even the fixed bond for the £20k 4.25%

any improvement on these please

Hi @Isla1972 . I'm only gonna give some suggestions based on what I've read above.

Firstly, with the £25k you are looking at in savings anything over a 4% interest rate is going to push your interest over the personal savings allowance of £1000 (that's assuming your a basic rate tax-payer). Do you have any of your ISA allowance left for some of these funds to generate tax-free interest. Note: You do mention that you have investments in a stocks & shares ISA so you may have no allowance left for this tax-year.

Secondly, I notice you are looking at the Hampshire Easy Access at 4%. Knowing many people use Moneyfacts to compare accounts (as suggested helpfully by @albermarle) the Hampshire account is an advertised account so it appears at the top of the page even though there are rates that beat it. Use the 'sort' button by 'rate' and look through the accounts. There are quite a few at more than 4% though this would swing you back to my first point.

Thirdly, if you want to use a higher interest rate and your ISA allowance has been used. You've a few options based on your circumstances. As you haven't mentioned wages the 'Starter Rate for Savings' (link to MSE page of this here How the starting rate for savings works - Money Saving Expert) may be applicable but is unlikely. If this isn't the case possibly using premium bonds to hold your savings tax-free may be an option.

Other than these, with the information provided, your ideas seem fine, just make sure your savings work as hard as possible in terms of generating interest and that you have enough easily accessible should the unexpected happen. A 6 month 'emergency' fund is usually suggested.

Just one other things just clarify where the 20k is currently held as it's hard to follow with the above. Thanks

Isla1972

Isa limit full 
basic tax rate payer 
I'd like to go with a well known ish bank thats why Hampshire appealed off the list 

im not sure about the bit you say about wages but im off to read your link 

Isla1972

The £20k was in a good leeds account but the rates finished and dropped to barely anything 

Isla1972

Earnings approx £20k 
interest made this yr in Quilter £18k 

Ch1ll1Phlakes

Isla1972 said:

Isa limit full 
basic tax rate payer - earnings approx £20k 
interest made this yr in Quilter £18k 
I'd like to go with a well known ish bank thats why Hampshire appealed off the list 

im not sure about the bit you say about wages but im off to read your link 

The £20k was in a good leeds account but the rates finished and dropped to barely anything 

Ok. I'm put your comments together just to be a little easier to track. With earnings of £20k you don't need to worry about the Starter Savings rate but just wanted to mention it incase it was applicable, as it is for some basic rate tax-payers.

Ok so £20k in a matured Leeds account that needs moved is fine, and yes I would suggest moving the Virgin Money £5k if it's only getting 2.9%. Perfectly fine to want a well known bank, though I will suggest Cahoot (which is part of Santander) at 4.4% or even Tesco Bank at 4.1%. All shown on the MSE savings page.

Again I'll reiterate the 6 month emergency fund idea. Is £5k in easy access going to be enough to make you feel comfortable if something did go wrong - though hopefully it won't.

With this all in mind, having a look at bonds and if you're looking for simplicity Hampshire do seem to be the best provider to offer reasonably high rates on both an easy access account and a 1 Year Bond. Using these two accounts would generate a total of £1050 in interest (£200 on £5k @ 4% plus £850 on £20k @ 4.25%). So you would be over the personal allowance and would have to pay tax of £10 on the £50 of interest over the threshold. Maybe your happy enough with this but if not Premium Bonds may be an option for you, though there is no certainty you'll get anything from them.

I'll also note you say £18k in interest with Quilter. As this is held in a Stocks & Shares ISA this won't affect you PSA (though if I'm incorrect on this someone please feel free to correct me). I'll give you the heads up too that weekends can be quite quiet on the forum so you may see more replies if you reply to your own post midweek to move it to the top of the forum. Hope this helps.

Isla1972

Helps alot thank you 
the Quilter £18k is generated from multiple ways i have a account that feeds into a isa bubble £20k every tax yr it also feeds £10k into a private pension every year to get tax relief  but it all sits in a fund bubble ( this is how I've been told and the best I can translate 🤣)

I don't think I was that far out so at least im on the right track and not missing some amazing deal 🤔 

Isla1972

Just looked at both Tesco(my employer so ill see if I can any staff perks)
and Cahoot 
Cahoot has a 4.40 and a 5% account but i can only put £3k in the latter so does anyone know if I can open both accounts to get £3k in one and rest in the other ? 

DRS1

Isla1972 said:

Helps alot thank you 
the Quilter £18k is generated from multiple ways i have a account that feeds into a isa bubble £20k every tax yr it also feeds £10k into a private pension every year to get tax relief  but it all sits in a fund bubble ( this is how I've been told and the best I can translate 🤣)

I don't think I was that far out so at least im on the right track and not missing some amazing deal 🤔 

You might want to check out those bubbles.  Is the fund bubble just made up of ISA bubbles or ISA and pension bubbles?  Or is there a fund bubble outside ISA and pension bubbles?  Perhaps simplest to ask if you get a Consolidated Tax Certificate each year - that would be a clue that you have some taxable income there.