advice needed

foxybabe

I wonder whether I could pick your brains? I have got approx £55,000 to invest and havent a clue what would be the best thing to do with it. I have got a F/A coming to see me next week but I want to do some research first.

I have used the savings calculator on this site and if I put it all into an account paying 5.75% it will earn £2,100 before tax. However the advice I have been given so far is that it should be split up and it will get a better rate. This to me dosent make sense as, yes, I will perhaps get a better rate short term but it will be on a smaller amount, therefore the amount of interest earned will still be the same. 5.75% on 55,000 is better than 6% on 20,000. (I hope that made sense, because I know what I mean but don't know how to write .it down)

Any advise would be really appreciated as I want to make this money work for me as wellm as possible.

debbie42

The "splitting up" advice on cash savings is normally discussed with the 35K FSCS compensation figure in mind. So some people choose to not have more than this in one institution. I don't see how you'd get a better aggregrate rate by splitting? You'd choose the higher rate, as a rule.

There are lots of posts on this forum regarding IFAs and what to look for and consider, so I'd do a bit of background reading on that before your appointment. Do make sure they are truly independent, though!

You should also look on the ISA board, as, if you haven't used your allowance yet for this year, that's an obvious place to stick some of your savings.

caveat_emptor

you don't say what your attitude to risk is so beware the IFA. If you put your cash in Northern Rock you can get 6.5% fixed rate bond or instant variable and your 55k is guaranteed.

Mikeyorks

foxybabe wrote: »

I have used the savings calculator on this site and if I put it all into an account paying 5.75% it will earn £2,100 before tax.

Don't know how you used it ... 'cos my brain made that wrong .. and my calculator makes it £3162.50 before tax. I know it's solar powered (the calculator ..... and the brain, sometimes) and the sun's gone down ... but my figures still right .... provided your £55k isn't a typo?

As Debbie rightly says .... the splitting is normally advised around the £35k protection limit for funds per Institution. As you rightly say ... there's no discernible advantage otherwise ... if it's savings accounts you're interested in. If it's 'investing' .. then wiser to use more than one basket.

Personally ... I'd tend to see an IFA (and ask he bring his calculator!):p

foxybabe

Personally ... I'd tend to see an IFA (and ask he bring his calculator!):p[/quote]

Lol, I don't know what I did with the calculator .

Thanks everyone. It makes sense about not having any more than 35k in any account. I didn't realise that only that amount was safe in an account.

I would like to add that I don't want to risk any of the original capital. I just want to do the best thing with it, but as you will have gathered I am a total novice and I don't want to be bamboozled by a IFA who is just going to sell me policies which will give him/her the best commision.

Thanks again everyone