Suggestion! I got over £40K ... what is best option?

Bucki
Bucki Posts: 203 Forumite
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in Budgeting & bank accounts
Hello All


Yes, I been saving for a looooooooooong time and kept my expenses to minimum.
No, I have not beeing eating cat/dog food but did not invest in gadget and high end brand clothers etc.


Currently I have 2 x bank joint-accounts: Lloyds Bank and Santander 123 with money in them. The lloyds bank has got over £14K but only pays £3 interest per month and Santander over £30K and I get round £25 per month as interest. Santander only provides interest only up to £20K and Lloyds is just going down hill.


What is easiest and more effective to get more interest money out of it?


Can I create another Santander 123 account on my wife's name only? (we have joint account atm.)
My idea was to have 2 x Satander of £20 each and it would kind of be good enough.


I read about this opening 3 banks and transfer money from one to another, but that is abit over my head.


What do you think?
«13

Comments

  • Ben8282
    Ben8282 Posts: 4,821 Forumite
    Combo Breaker First Post Newshound!
    https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/
  • jonesMUFCforever
    jonesMUFCforever Posts: 28,898 Forumite
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    Red or Black in Vegas?
    50% chance of doubling your money LOL.
  • Bucki
    Bucki Posts: 203 Forumite
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    lol Jones


    That would be a total waste...
  • worried_jim
    worried_jim Posts: 11,631 Forumite
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    Get it invested pronto!
  • Bucki
    Bucki Posts: 203 Forumite
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    edited 16 October 2019 at 7:33AM
    Ben8282 wrote: »
    https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/


    I think you misread the figure.
    Is not £4.000 but rather over £40.000 saving.

    The link points out to current account with low max-deposit.
    Not sure how this would be providing me best interest rate?


    UPDATE


    Had to scroll down to see the rest / ISA accounts.
    Any personal recommandation to my topic?
  • Bucki
    Bucki Posts: 203 Forumite
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    worried_jim wrote: »
    Get it invested pronto!


    Sorry, I am not sure what you mean ... invest? where, how, what?
    you mean invest in property or what?
  • grumiofoundation
    grumiofoundation Posts: 3,050 Forumite
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    Bucki wrote: »
    Hello All
    Yes, I been saving for a looooooooooong time and kept my expenses to minimum.
    No, I have not beeing eating cat/dog food but did not invest in gadget and high end brand clothers etc.
    Currently I have 2 x bank joint-accounts: Lloyds Bank and Santander 123 with money in them. The lloyds bank has got over £14K but only pays £3 interest per month and Santander over £30K and I get round £25 per month as interest. Santander only provides interest only up to £20K and Lloyds is just going down hill.
    What is easiest and more effective to get more interest money out of it?
    Can I create another Santander 123 account on my wife's name only? (we have joint account atm.)
    My idea was to have 2 x Satander of £20 each and it would kind of be good enough.
    I read about this opening 3 banks and transfer money from one to another, but that is abit over my head.
    What do you think?

    As already posted highest easy access interest rate ~1.5%, can get 2% on a one year fix. Probably what the "best" thing to do with it depends on what your situation is.

    Are you a first time buyer, and wanting to save for a house - if so Lifetime ISA is likely suitable
    https://www.moneysavingexpert.com/savings/lifetime-isas/

    What is your pension situation? Might want to look at increasing pension contributions (since they benefit from tax relief), especially if you are a higher rate tax payer.
  • blue.peter
    blue.peter Posts: 1,203 Forumite
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    Bucki wrote: »
    Sorry, I am not sure what you mean ... invest? where, how, what?
    you mean invest in property or what?


    I have the bulk of my savings invested in a stocks & shares ISA with Hargreaves Lansdown. You could take a look at their web site (or those of comparable firms) and see if what they're offering is suitable for you. For what it's worth, my money is invested in funds that pool my money with other people's, and then invest it in things like equities and corporate bonds. I've consciously restricted myself to ethical funds, with a heavy weighting towards bonds, and have achieved about 4 to 5% a year over the last four years. Obviously, I can't guarantee that you'd get this sort of return. What you get depends very much on the fund(s) that you choose: there are thousands available.

    I have kept some of my savings as cash , in an easy-access savings account, for immediate needs. It takes a few days to sell investment funds and get the cash out if needed.

    This might or might not be an appropriate approach for you. It's not without risk: the value of your investments can (and will) go down as well as up. I've experienced considerable volatility, including a 5% drop over the space of a few days (since recovered). Any investment of this sort should generally not be for a period of less than about five years.

    You're welcome to contact me by PM if you'd like more information. However, I will *not* give any financial advice.

    I have some notes that I wrote for a couple of my niblings when they wanted to set up S&S ISAs, and would be happy to let you have a copy if that'd help.
  • penners324
    penners324 Posts: 2,716 Forumite
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    Add it to your pension? Pay off a bit of your mortgage?
    Marcus Bank pays 1.45% on all deposits.
  • blue.peter
    blue.peter Posts: 1,203 Forumite
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    penners324 wrote: »
    Add it to your pension? Pay off a bit of your mortgage?
    Marcus Bank pays 1.45% on all deposits.


    If you have a mortgage, or any other loan, it is almost certain that paying it off, or at least reducing it, is the best thing to do. There are only rare circumstances when this is not the case.

    The case for pensions is less clear-cut. These are designed to provide you with an income in retirement, and not for general savings. For this reason, benefits can't be taken until the age of 55, and only 25% can be taken as a tax-free lump sum. Taking more than 25% as a lump sum has been allowed for a few years now, but can have very nasty tax consequences. On the other hand, payments in (on which there are restrictions) do attract tax relief. But if you do want your money to provide you with a retirement income, they're good.
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