Where to park some money for perhaps a year

[jmsgld]

Have been looking for a building plot for over a year now and still haven't found anything, money has been in 3 Santander 123 accounts with the remaining in their instant access saver (0.5% PA).

I need to be able to access the money within 28d should something turn up...

Any ideas?

Was thinking of maybe putting some to one of these "Robo Advisers"

[Ginge R]

Don't, it's too short a timescale. Consider going onto a money website, check out instant access deals and suck up the poor rates.. bear in mind, it's not about making a quick buck, it's more about not losing one.

[Wombat3]

Also should be no more than £75K per bank to make sure its protected

[AndrewEH1]

Stick £50k into Premium Bonds?

Might get nothing, might get a million but you can access the money instantly should you need to.

[jmsgld]

Thanks for the advice.

Is it £75k per bank? I thought it was £75k per account?

[ashleyman]

jmsgld said:

Thanks for the advice.

Is it £75k per bank? I thought it was £75k per account?

£75k per banking group.

For example, £75K in Natwest with £75k in RBS means only £75k is protected as both banks are owned by RBS.

You'll want to make sure that whatever banks you use are owned by different groups.

[jmsgld]

I might stick some in premium bonds just for the hell of it, I seem to remember reading somewhere that you would be marginally better off in a savings account with a lottery ticket each week...

[jmsgld]

Thank you very much, I was under the impression it was £75k per account... not that Santander should be going anywhere...

[Simpo Two]

I bought a chunk of RDS shares earlier in the year. My ex-IFA thought I was mad. 'It's not about making a quick buck, it's more about not losing one' he said. They pay 6-7% dividend and - added bonus - I don't have to pay him £400pcm. Find me a bank that pays 6-7% interest.

[NickCQ]

Simpo Two said:

Find me a bank that pays 6-7% interest.

That's a somewhat facile statement given the vastly dissimilar risk profiles.

[drainbrain]

Simpo Two said:

I bought a chunk of RDS shares earlier in the year. My ex-IFA thought I was mad. 'It's not about making a quick buck, it's more about not losing one' he said. They pay 6-7% dividend and - added bonus - I don't have to pay him £400pcm. Find me a bank that pays 6-7% interest.

Cashplus. On its 4 year bonds. 7%. £1k-£250k.

[Simpo Two]

NickCQ said:

Simpo Two said:

Find me a bank that pays 6-7% interest.

That's a somewhat facile statement given the vastly dissimilar risk profiles.

Oh I think RDS is pretty good. Dividends and a nice share price increase (though that's a happy bonus - a bit like Braindrain's capital growth on property). BTW what are your qualifications?

drainbrain said:

Cashplus. On its 4 year bonds. 7%. £1k-£250k.

https://apsbond.nevilleregistrars.co.uk/

Novel but seems a bit whiffy to me. I'll stick to oil for now. People will always need oil.

[DonkeyApple]

drainbrain said:

Simpo Two said:

I bought a chunk of RDS shares earlier in the year. My ex-IFA thought I was mad. 'It's not about making a quick buck, it's more about not losing one' he said. They pay 6-7% dividend and - added bonus - I don't have to pay him £400pcm. Find me a bank that pays 6-7% interest.

Cashplus. On its 4 year bonds. 7%. £1k-£250k.

Worth noting that it's an APS product and is basically a mini bond which is a pretty much unregulated product. They aren't covered by the FSCS and many don't have 100% capital guarantees. A large number of Mini bonds have the entire capital at risk so you could lose the lot. Definitely an eyes wide open product and not comparable to a bank account. A lot are very dodgy indeed.

[whoami]

Simpo Two said:

NickCQ said:

Simpo Two said:

Find me a bank that pays 6-7% interest.

That's a somewhat facile statement given the vastly dissimilar risk profiles.

Oh I think RDS is pretty good. Dividends and a nice share price increase (though that's a happy bonus - a bit like Braindrain's capital growth on property). BTW what are your qualifications?

He was talking about the comparative risk profiles.

[Simpo Two]

whoami said:

He was talking about the comparative risk profiles.

That's fine; if RDS stop paying a dividend I'll move to somewhere that does. Bear in mind I trusted a bloke who said I'd get 4%, but didn't, and I paid him for the honour. I'm still paying for it. He said buying shares was 'mad'.

[anonymous-user]

Simpo Two said:

I'll stick to oil for now. People will always need oil.

Have a read you have 2 weeks left to respond
https://www.gov.uk/government/consultations/transp...
Oil as a road fuel isn't really mentioned Just hydrogen, electric and gas

https://www.gov.uk/government/consultations/propos...

[Ozzie Osmond]

A personal view,

• Don't buy premium bonds. Lousy return, and no more "tax free" than anything else for 99% of people.
• Stick your cash in an internet savings account with a proper UK bank at the best rate you can find, probably around 0.8%
• Buy one lottery ticket if you feel you must...

Ginge is correct; you'd be taking a big risk to go near the stock market with such a short timescale.

[NickCQ]

Simpo Two said:

Oh I think RDS is pretty good. Dividends and a nice share price increase (though that's a happy bonus - a bit like Braindrain's capital growth on property). BTW what are your qualifications?

It's equity risk, that's the point. In the case of RDS you're buying a leveraged commodity derivative. 52 week range 1,256 to 2,140, which is the kind of volatility that could basically eliminate your dividend yield if you have a short holding period.

More generally I'm not a great believer in picking any individual stocks - I'm more than happy to accept the market return.

I don't know whether you are genuinely interested in my qualifications or not, but I do do this stuff for a living (a couple of years in corporate finance advisory, subsequently moved to the principal side).

And also:

Simpo Two said:

That's fine; if RDS stop paying a dividend I'll move to somewhere that does.

Where do you think the share price will go if the dividend gets cut?

[whoami]

NickCQ said:

Where do you think the share price will go if the dividend gets cut?

Spot on.

[Behemoth]

drainbrain said:

Cashplus. On its 4 year bonds. 7%. £1k-£250k.

I just had a look at this. 4 year lock in. Totally illiquid. No FSA protection. It wouldn't be my choice for 7% gross. P2P can get you much the same return but with a secondary market and a wide spread of risk (not the same as risk-free, of course).