Advice for £5000 5year investment

grannydon

I have £5000 to invest over 5 years and was looking for the best interest rates for this. Thanks for you assistance.
I already run an ISA to the maximum yearly deposit and do not want to get into stocks and shares.
I will be 60 on 8th April - I don't know if this makes any difference.

Thanks to all who have replied to my posting - I now have ample information and routes to help with my investment. Your help is much appreciated.

Steve_xx

First you ought to use up your ISA allowance which is £3k in this tax year and £3.6k in the next tax year.

Alliance & Leicester's Direct ISA pays a 6.25% and you get to keep all of the interest as it is tax-free.

Rafter

Leeds Building Society are also doing a 3 year fixed rate ISA paying 6.1%.

The problem with the Alliance and Leicester one is that the rate will fall if base rates go down, and the rate will probably fall again after one year and you will have to switch.

Over 5 years you might get a better return from the stock market, but this is higher risk and the value of your investment could fall.

Good luck

R.

grannydon

Thanks for your reply - I already have an ISA which I max invest into.

dunstonh

For clarification, the OP used the term invest which suggets it will not be a cash based option like Cash ISA. It is more likely to be stocks and shares ISA.

That narrows it down to about 15,000 odd investment options. However, to go further than that would require more information. In particular risk profile.

Jonbvn

However, 5 years is a bit too short for most S&S.

How about considering index linked saving certs, which are tax-free?

jem16

dunstonh wrote: »

For clarification, the OP used the term invest which suggets it will not be a cash based option like Cash ISA. It is more likely to be stocks and shares ISA.

The OP also used the phrase "best interest rate" which suggests to me that he/she really means "save".

Perhaps the OP could clarify before any more suggestions are made?

grannydon

jem16 wrote: »

The OP also used the phrase "best interest rate" which suggests to me that he/she really means "save".

Perhaps the OP could clarify before any more suggestions are made?

Yes it is savings not Stocks and Shares.

mr_fishbulb

Are you a higher rate tax payer? If so, index linked savings certificates may be an option.

grannydon

I am a standard rate tax payer but turn 60 at the beginning of April (8th)

Steve_xx

Have a look at these accounts:

http://www.kaupthingedge.co.uk/

Also consider ICICI Bank

https://www.icicibank.co.uk/hisave.html

And this one from Alliance & Leicester

http://www.alliance-leicester.co.uk/savings/index.asp?page=esaver&ct=savingshome