What would you do with 5k savings?
Discussion
Not a lot for most of you on here I'm sure, but I'm a bit poor! Still want my money to work the best it can for me. I'm not expecting massive returns but as an alternative to crappy interest on a savings account...
Not after massive high-risk, but was considering something like peer-to peer lending, or maybe just chucking it in premium bonds?
Any advice?
Not after massive high-risk, but was considering something like peer-to peer lending, or maybe just chucking it in premium bonds?
Any advice?
If it's the total of your savings I would keep it in an instant access account, it won't make a great deal of interest but will be available should you lose your job or break something important in the house/car.
Alongside this I would start saving on a monthly basis, some of the monthly savers offered by banks and building societies offer decent rates. You could look at investing that money in something more interesting at a later date.
Alongside this I would start saving on a monthly basis, some of the monthly savers offered by banks and building societies offer decent rates. You could look at investing that money in something more interesting at a later date.
Sharted said:
If it's the total of your savings I would keep it in an instant access account, it won't make a great deal of interest but will be available should you lose your job or break something important in the house/car.
You can pull money out of P2P lenders usually within 24 hours (I know you can with Zopa and LandBay as I have done it). Someone else just takes over the loan.gregf40 said:
You can pull money out of P2P lenders usually within 24 hours (I know you can with Zopa and LandBay as I have done it). Someone else just takes over the loan.
Quite possible, however, P2P lending would not be my first choice for my emergency money due to the risk involved in comparison to a bank/Bsoc.If he can arrange to have a few hundred pounds cycle through the account each month then I would be looking at a couple of TSB classic plus accounts to get 5% or similar through Tesco Bank, Nationwide etc. Details on money saving expert. No need to have any standing orders paid out either. In the case of the TSB account he just has to pay 500 in each month and can then move it back out a day or so later. Set up standing orders to do it suitably timed with payday.
toohangry said:
V8A*ndy said:
For 5K and wanting quick access, I'd personally just chuck it in an instant access ISA.
Probably the worst advice ever. If I had little to no savings and no other investments, surely kick starting an ISA allowance is a very worthwhile thing to do no?!?!
Just asking.
V8A*ndy said:
Why?
If I had little to no savings and no other investments, surely kick starting an ISA allowance is a very worthwhile thing to do no?!?!
Just asking.
It's not bad advice at all, although the rate won't be great it's a way to guarantee tax free savings for the future when rates might be better.If I had little to no savings and no other investments, surely kick starting an ISA allowance is a very worthwhile thing to do no?!?!
Just asking.
The view that is often taken on these threads is where to get the best return rather than what is the best thing to do with the money, it's a rather simple view in my opinion.
V8A*ndy said:
toohangry said:
V8A*ndy said:
For 5K and wanting quick access, I'd personally just chuck it in an instant access ISA.
Probably the worst advice ever. If I had little to no savings and no other investments, surely kick starting an ISA allowance is a very worthwhile thing to do no?!?!
Just asking.
premium bonds are basically like buying tickets to a lottery each month, except you can get your money back ...so you are essentially gambling whatever interest you could have made compared to having the money in a savings account
you can get your money out now within days rather than weeks, so you could look at PB as being like a savings account...you cant win a big prize if you dont hold any ......
you can get your money out now within days rather than weeks, so you could look at PB as being like a savings account...you cant win a big prize if you dont hold any ......
FiF said:
If he can arrange to have a few hundred pounds cycle through the account each month then I would be looking at a couple of TSB classic plus accounts to get 5% or similar through Tesco Bank, Nationwide etc. Details on money saving expert. No need to have any standing orders paid out either. In the case of the TSB account he just has to pay 500 in each month and can then move it back out a day or so later. Set up standing orders to do it suitably timed with payday.
This is what I'd do. I use PB as well but you need to have funds invested for a whole month before it enters the draw. Timing is crucial. OP I'd do 3 things.
1. Open a TSB current account. You get 5% interest up to a balance of £2,000 and you only need to cycle £500 through per month (just set up same day standing orders from another bank account for £500 going in opposite directions)
2. Open a Nationwide flex current account. Exactly same as TSB except it's 5% up to £2,500, needs £1,000 a month flushing through and the rate expires after 12 months.
3. To add some potential better returns (and mitigate risk) open an H&L stocks and shares ISA account and invest the remaining £500 in an income/growth, moderate risk fund.
If you then plan on saving a regular monthly sum then again this could go into the S&S ISA.
1. Open a TSB current account. You get 5% interest up to a balance of £2,000 and you only need to cycle £500 through per month (just set up same day standing orders from another bank account for £500 going in opposite directions)
2. Open a Nationwide flex current account. Exactly same as TSB except it's 5% up to £2,500, needs £1,000 a month flushing through and the rate expires after 12 months.
3. To add some potential better returns (and mitigate risk) open an H&L stocks and shares ISA account and invest the remaining £500 in an income/growth, moderate risk fund.
If you then plan on saving a regular monthly sum then again this could go into the S&S ISA.
developer said:
Use it to pay off any credit that's at a higher interest rate than the interest you could earn with it.
Credit and overdraft free thankfully! Well, there's the mortgage, but I'm already overpaying that by £200 a month and want something a little more flexible. I really fancy the cycling money through high interest accounts idea, plus the S&S ISA. May put future savings towards P2P lending as well. Eventually I'd like to invest in a couple of little flats to rent, but until then there's no point having the money doing nothing!Thanks so much for the advice everyone!
Move your banking to Santander and open a 123 account. That'll pay you 3% on your current account balance, which will mean you have instant access to it, earn twice the prevailing ISA rate (even after tax) and as the financial landscape improves you can find a long term home for it in a year or so.
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