What to do with 180k

jmsuch

Just sold the house, cannot find anythine we like so thinking of renting. We are left with £180k equity and want to invest it but keep it flexible (1 month). Any suggestions? I was thinking about a shed load of Premium bonds (60K)

Cheers


JMS

YorkshireBoy

There have been at least 6 other questions like yours over the last few weeks or so on this board - the only difference being the amount (£10K to £450K).

I'd suggest looking back over recent posts and picking the useful bits out of those replies.

bonvonnie

if its only going to be very short term then Premium bonds are not the way to go, as the holdings have to be held by them (NS&I) for 30 days before they are eligable for the draws.

jonesMUFCforever

Stick it in the highest available savings account you can find and let the interest accumulate.
If you invest in Premium bonds today they won't go into first draw until at least November if not December and there is a chance that you will win nothing.
(I know I know the other side of the coin is that you could be a millionaire!)
Choices Choices
Eric

Alison_B

I think also that the maximum you can hold in premium bonds is £30,000.

charlieboycat

How about £90k each (ie. yourself and the other half of the "we") in Cahoot's new Bonus Saver at 5.25% gross? Opt for annual interest (so as not to get 5.15%) but close the account when you want the money back.

Swipe

charlieboycat wrote:

How about £90k each (ie. yourself and the other half of the "we") in Cahoot's new Bonus Saver at 5.25% gross? Opt for annual interest (so as not to get 5.15%) but close the account when you want the money back.

Is it wise to put all your eggs in the same basket i.e. one bank?

gizmoleeds

Swipe wrote:

Is it wise to put all your eggs in the same basket i.e. one bank?

Cahoot is part of the Abbey National so going bust is not likely. The only problem would be if there was a sudden drop in the interest rates - but Cahoot would only do this if other banks were doing it too (ie. due to a base rate drop).

Under the Banking Code only the first £35k aprox is protected (ie. insured) against the bank going bust though - so this is a consideration. Bigger companies have gone belly-up.

gizmoleeds

gizmoleeds wrote:

Under the Banking Code only the first £35k aprox is protected (ie. insured) against the bank going bust though - so this is a consideration. Bigger companies have gone belly-up.

sorry- not the banking code, the Financial Services Compensation Scheme.

If a bank or building society collapses, you may be at least partially protected by the Financial Services Compensation Scheme. The maximum compensation payment is £31,700 (100% of the first £2,000 and 90% of the next £33,000).

http://www.fsa.gov.uk/consumer/09_SAVINGS/your_rights/mn_bank_rights.html

charlieboycat

Swipe wrote:

Is it wise to put all your eggs in the same basket i.e. one bank?

A very fair comment - indeed I don't myself. At the end of the day its personal perception of risk (in part dependent on status of institution and length of proposed investment) and personal degree of risk aversion.

For example, I wouldn't personally put £180k into ICICI, not even for a day, let alone six months. But I am prepared to trust Abbey not to go under in the next six months (which is why I applied for a Bonus Saver on Friday and propose to stuff it once it is up and running this week).

YorkshireBoy

charlieboycat wrote:

...I am prepared to trust Abbey not to go under in the next six months

Are you as trusting of Grupo Santander.