Where to stick £15k for a few months?
Discussion
I've sold my Z4M today and have £15k or so that will sit around for a few months (maybe 6 months) until I decide to use it.
Anyone have any recommendations of where I can put it?
Due to the length of time I'll need it in, I appreciate I may only earn 1-2% but that's fine. As long as it's better than the 0.1% of my current account.
It needs to be a UK regulated bank with instant access. No invesments with risk attached.
Anyone have any recommendations of where I can put it?
Due to the length of time I'll need it in, I appreciate I may only earn 1-2% but that's fine. As long as it's better than the 0.1% of my current account.
It needs to be a UK regulated bank with instant access. No invesments with risk attached.
Santander 123 to get 1.5% on balances between £3k and £20k, but you need direct debits coming out and to pay money in each month and there is a £5 per month account fee.
TSB online pays 3% (I think) on £1,500, but you need to pay money in each month.
Tesco are doing 3% on balances up to £3k.
TSB online pays 3% (I think) on £1,500, but you need to pay money in each month.
Tesco are doing 3% on balances up to £3k.
snabzter said:
Santander 123 to get 1.5% on balances between £3k and £20k, but you need direct debits coming out and to pay money in each month and there is a £5 per month account fee.
TSB online pays 3% (I think) on £1,500, but you need to pay money in each month.
Tesco are doing 3% on balances up to £3k.
I already have several TSB accounts. It's a bit of a pain having multiple accounts thought which is why I'm not too keen on those with low maximum limits.TSB online pays 3% (I think) on £1,500, but you need to pay money in each month.
Tesco are doing 3% on balances up to £3k.
Santander is a good shout but I'd rather not move my current account and DD's due to the hassle factor.
Looks like NatWest have an account that pays 1.25% on £10k. Anyone used them?
Multiple Accounts is no problem with Tesco as no DDs are required and no regular payments are required. Rate guaranteed for at least 2 years. Currently closed to new applicants though.
Nationwide FlexDirect (as mentioned above) is a great idea though it's rate is for 1 year and it does come with DDs and regular payment requirements. It's an even better idea if you have a Nationwide A'c and recommend your wife to get one. £100 each.
Nationwide FlexDirect (as mentioned above) is a great idea though it's rate is for 1 year and it does come with DDs and regular payment requirements. It's an even better idea if you have a Nationwide A'c and recommend your wife to get one. £100 each.
Premium bonds have long been a well recommended choice for short term holdings where inflation isn't an issue. The tax free status of prizes plus the chance of winning a life-changing sum have been a compelling combination. However the tax free status isn't relevant for many people since the introduction of the PSA (personal savings allowance), and the chance of the big win is vanishingly small.
I read an interesting analysis which showed that putting the money in an ordinary savings account and using the 1.1% or so interest to buy lottery tickets now gives you a higher chance of a life changing win than buying premium bonds outright.
For the technically minded (you know who you are) the EV of the bonds at 1.15% marginally betters the savings account at 1.1%, but the distribution of prizes - specifically the higher minimum prize of £25 on the bonds - skews the outcomes (even at the max £50k holding level) such that buying the lottery tickets is a better strategy if capital preservation with the chance of a £1m+ win is your goal.
I read an interesting analysis which showed that putting the money in an ordinary savings account and using the 1.1% or so interest to buy lottery tickets now gives you a higher chance of a life changing win than buying premium bonds outright.
For the technically minded (you know who you are) the EV of the bonds at 1.15% marginally betters the savings account at 1.1%, but the distribution of prizes - specifically the higher minimum prize of £25 on the bonds - skews the outcomes (even at the max £50k holding level) such that buying the lottery tickets is a better strategy if capital preservation with the chance of a £1m+ win is your goal.
I'd go with premium bonds. You might get nothing, but you might do very well. You won't get a massively significant amount of interest off it.
That said, I'm constantly topping up and checking my higher interest accounts to try to get every penny of interest available.
I'm also very keen on instant access. That's why I opened two current accounts with Tesco. 3% interest on balances up to £3k. So I've got £3k in each of them doing 3% interest each.
So then you've got 9k to put in other accounts/premium bonds.
That said, I'm constantly topping up and checking my higher interest accounts to try to get every penny of interest available.
I'm also very keen on instant access. That's why I opened two current accounts with Tesco. 3% interest on balances up to £3k. So I've got £3k in each of them doing 3% interest each.
So then you've got 9k to put in other accounts/premium bonds.
megaphone said:
OP, why go to all the trouble of opening a current account for a measly 1-2% for 6 months? Have you worked out the return?
It could be longer than 6 months, but as NickCQ says, it's money for very little work and I like the sound of that.I'm leaning towards Premium Bonds as it's a safe place to keep my money for a short period of time even if I earn just 1% in prizes.
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