Interest on Savings, Allowance Understanding Required

moneytree999

Albermarle said:

If you want the £200K to last many years, then you would be advised to look at investing at least a part of it.

Yes, I need it to last as long as possible ....Ive tried looking at other ways of Investing .. but not sure where to put it ...4% with NS&I is about best i can see ..Im Not sure about investing with a Financial Planner, its a scary thought , if markets crash etc, i can lose the whole lot 

eskbanker

moneytree999 said:
Im Not sure about investing with a Financial Planner, its a scary thought , if markets crash etc, i can lose the whole lot 

An independent financial adviser would soon help you understand why that argument doesn't really withstand any scrutiny, and how to address such fears!

badmemory

I would suggest working out when you need to start putting money in an ISA ready for when you do have taxable income.  You don't want to find yourself having to pay tax on all £7k of your £8k interest.

EthicsGradient

moneytree999 said:

Albermarle said:

If you want the £200K to last many years, then you would be advised to look at investing at least a part of it.

Yes, I need it to last as long as possible ....Ive tried looking at other ways of Investing .. but not sure where to put it ...4% with NS&I is about best i can see ..Im Not sure about investing with a Financial Planner, its a scary thought , if markets crash etc, i can lose the whole lot 

NS&I Bonds currently give 4.04% for 1 year fixed, 3.85% for 2 year fixed. You can do a little better: 4.45% for 1 year fixed, and 4.44% for 2 years: Best savings accounts: 4.75% easy access or 4.53% fixed rate
If you keep each below the 85k FSCS limit, these are guaranteed in case of bank failure - so split the 200k into three or more accounts, eg 85k fixed for 1 year, 85k fixed for 2years, 30k in an easy access account for a year's spending and emergencies.

moneytree999

EthicsGradient said:

moneytree999 said:

Albermarle said:

If you want the £200K to last many years, then you would be advised to look at investing at least a part of it.

Yes, I need it to last as long as possible ....Ive tried looking at other ways of Investing .. but not sure where to put it ...4% with NS&I is about best i can see ..Im Not sure about investing with a Financial Planner, its a scary thought , if markets crash etc, i can lose the whole lot 

NS&I Bonds currently give 4.04% for 1 year fixed, 3.85% for 2 year fixed. You can do a little better: 4.45% for 1 year fixed, and 4.44% for 2 years: Best savings accounts: 4.75% easy access or 4.53% fixed rate
If you keep each below the 85k FSCS limit, these are guaranteed in case of bank failure - so split the 200k into three or more accounts, eg 85k fixed for 1 year, 85k fixed for 2years, 30k in an easy access account for a year's spending and emergencies.

I gather NS&I are covered for 'Unlimited', not just £85,000, thats why i was thinking of putting the Whole £200k in a 1 year Bond

wmb194

moneytree999 said:

EthicsGradient said:

moneytree999 said:

Albermarle said:

If you want the £200K to last many years, then you would be advised to look at investing at least a part of it.

Yes, I need it to last as long as possible ....Ive tried looking at other ways of Investing .. but not sure where to put it ...4% with NS&I is about best i can see ..Im Not sure about investing with a Financial Planner, its a scary thought , if markets crash etc, i can lose the whole lot 

NS&I Bonds currently give 4.04% for 1 year fixed, 3.85% for 2 year fixed. You can do a little better: 4.45% for 1 year fixed, and 4.44% for 2 years: Best savings accounts: 4.75% easy access or 4.53% fixed rate
If you keep each below the 85k FSCS limit, these are guaranteed in case of bank failure - so split the 200k into three or more accounts, eg 85k fixed for 1 year, 85k fixed for 2years, 30k in an easy access account for a year's spending and emergencies.

I gather NS&I are covered for 'Unlimited', not just £85,000, thats why i was thinking of putting the Whole £200k in a 1 year Bond

But you'll only need to spread it across just three banks/BS. If this is your only income and you need it to last wouldn't it be a good idea to try to earn as much interest as you can?

Do you not need to hold some of it back as instant access? Locking it all away in a savings bond might leave you with cashflow issues.

DRS1

moneytree999 said:

EthicsGradient said:

moneytree999 said:

Albermarle said:

If you want the £200K to last many years, then you would be advised to look at investing at least a part of it.

Yes, I need it to last as long as possible ....Ive tried looking at other ways of Investing .. but not sure where to put it ...4% with NS&I is about best i can see ..Im Not sure about investing with a Financial Planner, its a scary thought , if markets crash etc, i can lose the whole lot 

NS&I Bonds currently give 4.04% for 1 year fixed, 3.85% for 2 year fixed. You can do a little better: 4.45% for 1 year fixed, and 4.44% for 2 years: Best savings accounts: 4.75% easy access or 4.53% fixed rate
If you keep each below the 85k FSCS limit, these are guaranteed in case of bank failure - so split the 200k into three or more accounts, eg 85k fixed for 1 year, 85k fixed for 2years, 30k in an easy access account for a year's spending and emergencies.

I gather NS&I are covered for 'Unlimited', not just £85,000, thats why i was thinking of putting the Whole £200k in a 1 year Bond

Being a bit ignorant but what are you going to live on during that year?  Or are you putting the £200k into a bond which pays monthly interest?  Can you live on that?

moneytree999

DRS1 said:

moneytree999 said:

EthicsGradient said:

moneytree999 said:

Albermarle said:

If you want the £200K to last many years, then you would be advised to look at investing at least a part of it.

Yes, I need it to last as long as possible ....Ive tried looking at other ways of Investing .. but not sure where to put it ...4% with NS&I is about best i can see ..Im Not sure about investing with a Financial Planner, its a scary thought , if markets crash etc, i can lose the whole lot 

NS&I Bonds currently give 4.04% for 1 year fixed, 3.85% for 2 year fixed. You can do a little better: 4.45% for 1 year fixed, and 4.44% for 2 years: Best savings accounts: 4.75% easy access or 4.53% fixed rate
If you keep each below the 85k FSCS limit, these are guaranteed in case of bank failure - so split the 200k into three or more accounts, eg 85k fixed for 1 year, 85k fixed for 2years, 30k in an easy access account for a year's spending and emergencies.

I gather NS&I are covered for 'Unlimited', not just £85,000, thats why i was thinking of putting the Whole £200k in a 1 year Bond

Being a bit ignorant but what are you going to live on during that year?  Or are you putting the £200k into a bond which pays monthly interest?  Can you live on that?

Ill have enough savings in an 'Instant Account' to last 1 year ( Ill be eating into the £200k every year, to pay rent / Food etc  )

Yorkie1

As someone mentioned earlier in the thread, if you were planning on putting it into an ISA, remember that you have an allowance of £20K per year - you can't just bung it all in at one go.

badmemory

You could even put some in premium bonds as that would give you fairly easy access.  I am currently getting more than I would from most easy access accounts.