Advice on short term savings

miabrown

Hi all. I have £40k that I would like to put into a savings account where I can withdraw the interest every month, without it going back into the capital amount. I can lock this away for 1-2 years. Does anyone have any suggestions please? Thanks

luci

https://forums.moneysavingexpert.com/discussion/6656463/advice-on-short-term-savings

Maybe look at NS&I. I have an account where they pay interest automatically every month without it going back into the capital amount.

InvesterJones

Ford money also have this option on their fixed savings.

Cairnpapple

I've used NS&I Guaranteed Income Bond for this before. Just bear in mind that it is properly locked away unlike an ISA that you could access in an emergency.

wmb194

https://forums.moneysavingexpert.com/discussion/6656463/advice-on-short-term-savings

The are lots of no access, fixed rate savings bonds with the option to have interest paid away monthly to an account of your choice. Currently I have ones with Atom and Vanquis that pay away interest monthly but I don't think they're offering the top interest rates at the moment.

Moneyfacts has good data but when you look at the tables make sure to change the "sort" filter to "rate." There's a column for "interest paid" that indicates the interest payment frequency:

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

Baldytyke88

I have relatives who may be investing/saving a similar amount. Will their bank advise them which of their products to buy? Savings accounts or investment trusts, trackers?

A relative was asking me to invest some money for them, I would not want it in my name.

friolento

https://forums.moneysavingexpert.com/discussion/comment/81895192#Comment_81895192

Taking advice / guidance from a bank about savings and investments rarely gives you the best deal since all they will offer are their own products, rather than the best available in the market. Sometimes banks do have market-leading products but it really is rare. See moneyfactscompare, as already mentioned.

I would be extremely cautious about investing money for a relative, or anyone else, in my name.The money would legally belong to you, why would they give it to you? Would you get drawn into some illegal activities? Why wouldn't they invest their own money in their own name? What "loophole" are they trying to exploit?

nottsphil

Forget the likes of NS&I.

Spend the rest of the day opening all the regular savings accounts that pay 6% or more and fund them (c.£3500). Open the highest paying instant access account that allows unlimited withdrawals, then fund the accounts again from it on 1st or 2nd March. You will then have £7000 earning far more than even a 1 year term account would pay for that sum, and for over 360 days. Then drip-feed from the remaining £33,000 over the following 9 months, which will leave you with £1500 (plus the funds that will have matured mid-year from 6-month and Xmas accounts) when you come to make the twelfth payments at the start of January. That's the time to close the instant access account, because you'll need the accrued interest to put towards those final payments. I haven't done the maths but it should be obvious that you will gain several hundred pounds more interest over the year, most of which would also be accessible penalty-free should an unforeseen emergency arise.

It's basically a no-brainer.