Clueless, savings

hyland_martin

I currently have a 'secured growth account' worth around 30240, this account matures in 2010 but I am struggling with debt now! If I terminate the account the early termination amount will be 26460, this is 340 pounds less than I origionally put in. In order to pay off my debts I need around 6000, leaving about 20000. Does anyone have any ideas of how to invest this 20000 for about 3 years so that i dont end up totally out of pocket?? Please only post if your serious, im a stressed out man.

I have tried to gain a loan and cc for the 6000 but due to a poor credit score have been declined.

Steve_xx

First you need an ISA into which you put £3000, before the tax year ends in April. The Kent Reliance Building Society pays 6.05% currently, and it's tax free of course.

Put £3600 in an ICICI Bank Hi-Save account, paying 6.41% and the remainder in an ICICI year bond paying 6.85%.

When it gets to April (new tax year) put the £3600 in the ICICI Hi-save account into your ISA.

bristolleedsfan

Steve_xx wrote: »

First you need an ISA into which you put £3000, before the tax year ends in April. The Kent Reliance Building Society pays 6.05% currently, and it's tax free of course.

quote]


Alliance and Leicester today launched Online ISA Issue 4 paying 6.25%.( includes 1% bonus until end of May 2009)

KRBS ISA rate is likely to get reduced following this weeks base rate decrease.

In the current climate of lower Base Rates id have thought best advice would be a fixed rate ISA especially as both Nationwide and NR pay interest on cheques quicker than KRBS

http://www.moneyfacts.co.uk/savings/bestbuys/fixed-rates-isa.aspx

Steve_xx

bristolleedsfan wrote: »

Steve_xx wrote: »

First you need an ISA into which you put £3000, before the tax year ends in April. The Kent Reliance Building Society pays 6.05% currently, and it's tax free of course.

quote]


Alliance and Leicester today launched Online ISA Issue 4 paying 6.25%.( includes 1% bonus until end of May 2009)

KRBS ISA rate is likely to get reduced following this weeks base rate decrease.

In the current climate of lower Base Rates id have thought best advice would be a fixed rate ISA especially as both Nationwide and NR pay interest on cheques quicker than KRBS

http://www.moneyfacts.co.uk/savings/bestbuys/fixed-rates-isa.aspx

The Kent has recently reduced its ISA rate. Not sure if they'll do so again as a result of the latest base rate cut.

The A&L newly launched ISA looks good, but I note that the rate is variable and A&L have a bit of a habit of luring then lowering. I note that 1% of it is in the form of a retaining bonus.

bristolleedsfan

Steve_xx wrote: »

bristolleedsfan wrote: »

The Kent has recently reduced its ISA rate. Not sure if they'll do so again as a result of the latest base rate cut.

The A&L newly launched ISA looks good, but I note that the rate is variable and A&L have a bit of a habit of luring then lowering. I note that 1% of it is in the form of a retaining bonus.

Being as KRBS raised its ISA rate every time their were base rate increases, its probable that they will reduce its ISA rate in response to this weeks base rate increase, how much the reduction is might depend on what it needs to do to stay in the best buy tables.

The fixed rate ISAS that i detailed are already higher than KRBS variable rate with Base Rates likely to full further resulting in variable rate ISA becoming lower in all probability.

A+L Rate includes ( as i stated) a 1% bonus until 31.5.09. im not sure what u mean by "retaining bonus"

hyland_martin

ok so it seems that an isa is the best bet, for the first 3000 and then for 3600 after april. any ideas on how to invest the 14000 remaining

Steve_xx

hyland_martin wrote: »

ok so it seems that an isa is the best bet, for the first 3000 and then for 3600 after april. any ideas on how to invest the 14000 remaining

Pay attention Martin:

Put £3600 in an ICICI Bank Hi-Save account, paying 6.41% and the remainder in an ICICI year bond paying 6.85%.

Lavendyr

Or consider Kaupthing Edge account at 6.5% and their fixed bond at 6.86%.