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  • FIRST POST
    • FilledWithLight
    • By FilledWithLight 11th Jul 18, 8:54 PM
    • 9Posts
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    FilledWithLight
    I have £1000 to invest just for 31 months...
    • #1
    • 11th Jul 18, 8:54 PM
    I have £1000 to invest just for 31 months... 11th Jul 18 at 8:54 PM
    So I have a credit card and have spent £1000. I have now saved up the £1000 to pay off the debt but no interest will be applied for 31 months, so I'm thinking that instead of paying it straight back I could invest the money until then. I have never invested money though and don't know where to start. Any suggestions on what kind of return I could expect and what type of investment would be the best yield for this amount of time?
    Last edited by FilledWithLight; 12-07-2018 at 4:13 PM.
Page 1
    • Zanderman
    • By Zanderman 11th Jul 18, 9:07 PM
    • 1,797 Posts
    • 4,454 Thanks
    Zanderman
    • #2
    • 11th Jul 18, 9:07 PM
    • #2
    • 11th Jul 18, 9:07 PM
    Do you mean invest or save? Investing implies risk and is normally only worthwhile for 5-10 years.

    Savings are safe, unexciting, but depending on how you do it - saving accounts, interest paying current accounts or p2p accounts, or p2p/savings accounts with cashback/referral bonuses - could gain you 5% plus

    (just to clarify - p2p is risky too, not conventional savings but usually ok shorter term than conventional investing, usually...)
    Last edited by Zanderman; 11-07-2018 at 9:11 PM.
    • Zanderman
    • By Zanderman 11th Jul 18, 9:40 PM
    • 1,797 Posts
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    Zanderman
    • #3
    • 11th Jul 18, 9:40 PM
    • #3
    • 11th Jul 18, 9:40 PM
    !!!8220;5% plus!!!8221; from a savings account?! You would be lucky to get that return from investing!
    Originally posted by AFF8879
    I was referring to saving, or interest paying current, or p2p accounts.

    5% is perfectly possible with current accounts for £1000. And with p2p. And more if the accounts used have some cashback or referral bonus.

    Even a savings account with bonus can get effectively more than 5% on modest amounts - e.g the current offer from Raisin who offer a £50 cashback on £1000 deposit in a 2% savings account. That's an effective 7% on £1000.
    • MDMD
    • By MDMD 11th Jul 18, 10:45 PM
    • 314 Posts
    • 179 Thanks
    MDMD
    • #4
    • 11th Jul 18, 10:45 PM
    • #4
    • 11th Jul 18, 10:45 PM
    Donít forget you will still need to pay the minimum amount on the card, which will vary and failure to do this could result in the interest free period being taken away.
    • Audaxer
    • By Audaxer 11th Jul 18, 10:48 PM
    • 1,279 Posts
    • 771 Thanks
    Audaxer
    • #5
    • 11th Jul 18, 10:48 PM
    • #5
    • 11th Jul 18, 10:48 PM
    I was referring to saving, or interest paying current, or p2p accounts.

    5% is perfectly possible with current accounts for £1000. And with p2p. And more if the accounts used have some cashback or referral bonus.

    Even a savings account with bonus can get effectively more than 5% on modest amounts - e.g the current offer from Raisin who offer a £50 cashback on £1000 deposit in a 2% savings account. That's an effective 7% on £1000.
    Originally posted by Zanderman
    I agree with looking for the best interest paying current accounts, but for someone who have never even invested before I think P2P is far too risky.
    • FilledWithLight
    • By FilledWithLight 12th Jul 18, 11:15 AM
    • 9 Posts
    • 1 Thanks
    FilledWithLight
    • #6
    • 12th Jul 18, 11:15 AM
    • #6
    • 12th Jul 18, 11:15 AM
    Thanks everyone. The Raisin savings account might be the way to go but I do like the thought of investing. Maybe just a low risk. What is P2P?
    • wjr4
    • By wjr4 12th Jul 18, 11:26 AM
    • 420 Posts
    • 268 Thanks
    wjr4
    • #7
    • 12th Jul 18, 11:26 AM
    • #7
    • 12th Jul 18, 11:26 AM
    Thanks everyone. The Raisin savings account might be the way to go but I do like the thought of investing. Maybe just a low risk. What is P2P?
    Originally posted by FilledWithLight
    Are you comfortable losing some of the money and not being able to repay the credit card in full? What about the minimum monthly credit card payments - where will they come from?
    I am an Independent Financial Adviser (IFA). Any posts on here are for information and discussion purposes only and should not be seen as financial advice.
    • MallyGirl
    • By MallyGirl 12th Jul 18, 11:52 AM
    • 2,957 Posts
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    MallyGirl
    • #8
    • 12th Jul 18, 11:52 AM
    • #8
    • 12th Jul 18, 11:52 AM
    Thanks everyone. The Raisin savings account might be the way to go but I do like the thought of investing. Maybe just a low risk. What is P2P?
    Originally posted by FilledWithLight
    P2P is peer to peer lending - it is not low risk
    • FilledWithLight
    • By FilledWithLight 12th Jul 18, 12:44 PM
    • 9 Posts
    • 1 Thanks
    FilledWithLight
    • #9
    • 12th Jul 18, 12:44 PM
    • #9
    • 12th Jul 18, 12:44 PM
    I can manage the monthly repayments. I didn't know P2P wasn't low risk. I don't have any experience of investing so don't know where to begin
    • mije1983
    • By mije1983 12th Jul 18, 1:08 PM
    • 3,544 Posts
    • 20,271 Thanks
    mije1983
    I don't have any experience of investing so don't know where to begin
    Originally posted by FilledWithLight
    Don't. Not for such a short term.

    I'd be following Zanderman's advice and looking at keeping it as cash, and maximising the return with no risk to the capital (in this situation).

    Unless of course you can still afford to pay the CC bill if your £1000 has dropped in value to £500, or less, in 31 months time? But then if you can, I'd be investing for the long term anyway.

    • MallyGirl
    • By MallyGirl 12th Jul 18, 2:37 PM
    • 2,957 Posts
    • 7,958 Thanks
    MallyGirl
    I can manage the monthly repayments. I didn't know P2P wasn't low risk. I don't have any experience of investing so don't know where to begin
    Originally posted by FilledWithLight
    With P2P you are lending money directly to a borrower or range of borrowers. Many of these are people who cannot borrow from mainstream providers - as a result there is a risk that they will default and not pay you back so your capital is at risk.
    • 18cc
    • By 18cc 12th Jul 18, 4:43 PM
    • 737 Posts
    • 493 Thanks
    18cc
    The return on 'saving' £1000 for 31 months will be minimal (£1.30 a year in an instant access account paying 1.3%, a bit more if put in a fixed rate savings account). Forego a coffee out every year and you are cover it.

    I would just pay off the card and worry about something more worth your time! Just my opinion....
    Last edited by 18cc; 12-07-2018 at 4:45 PM.
    • mije1983
    • By mije1983 12th Jul 18, 4:53 PM
    • 3,544 Posts
    • 20,271 Thanks
    mije1983
    The return on 'saving' £1000 for 31 months will be minimal (£1.30 a year in an instant access account paying 1.3%,
    Originally posted by 18cc

    I think you missed a '0' off on your calculation. As you say, still not ground breaking though, and probably not worth putting in a massive effort.

    • dealer wins
    • By dealer wins 12th Jul 18, 5:06 PM
    • 5,981 Posts
    • 11,533 Thanks
    dealer wins
    Also your credit history may take a hit as it will look like you are struggling to pay of your credit card, and only pay the minimum each month.
    Choose life
    • 18cc
    • By 18cc 12th Jul 18, 5:42 PM
    • 737 Posts
    • 493 Thanks
    18cc
    Yes sorry I obviously have to get my slide rule replaced!
    • Robin9
    • By Robin9 12th Jul 18, 7:04 PM
    • 3,076 Posts
    • 2,019 Thanks
    Robin9
    Hardly worth the effort of saving for £13 - go for Premium Bonds you might get £25 or a million but will get £1000 back.
    Never pay on an estimated bill
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