What to do with a small lump of cash?
Discussion
Hi folks; some advice if possible?
I'm getting made redundant at the end of Feb and will be getting a modest payout when I leave. I've allocated some of it to frivolous things, but I want to bank £5,000 with a view to build on it for a future house deposit.
My situation is that I currently rent with my girlfriend and we'll be looking to buy a place in roughly 3 years time. The lump sum will be the start of a savings pot; which we will pay into monthly (roughly £400/500 a month).
I'm guessing an ISA might be the best bet; but I'm not sure what kind to go for. I'm risky by nature, so I am tempted by a Stocks and Shares ISA, but most of these stat that you really need to keep it going for 5 years.
Would I be better playing it safe and going with a fixed rate and just leaving it? Best rate seems to be about 2.5% for 3 years.
Maybe something else that I hadn't considered?
Thanks
I'm getting made redundant at the end of Feb and will be getting a modest payout when I leave. I've allocated some of it to frivolous things, but I want to bank £5,000 with a view to build on it for a future house deposit.
My situation is that I currently rent with my girlfriend and we'll be looking to buy a place in roughly 3 years time. The lump sum will be the start of a savings pot; which we will pay into monthly (roughly £400/500 a month).
I'm guessing an ISA might be the best bet; but I'm not sure what kind to go for. I'm risky by nature, so I am tempted by a Stocks and Shares ISA, but most of these stat that you really need to keep it going for 5 years.
Would I be better playing it safe and going with a fixed rate and just leaving it? Best rate seems to be about 2.5% for 3 years.
Maybe something else that I hadn't considered?
Thanks
You can get 4.4% fixed for 3 years with LandBay: https://landbay.co.uk/lenders/
Beats any ISA and very little risk.
Beats any ISA and very little risk.
Peer to peer lending is VERY far from no risk. Counterparty risk? Credit risk? Default figures?
OP ask yourself this if Banks are offering around 1% instant access, why are they offering 4 times this level? For the good of their health?
3 years is short term, cash ISA and term deposits if available within them are your friend at the level you're talking about.
OP ask yourself this if Banks are offering around 1% instant access, why are they offering 4 times this level? For the good of their health?
3 years is short term, cash ISA and term deposits if available within them are your friend at the level you're talking about.
Have you got another job lined up? If not, you might need that money to fund a business venture.
I'd suggest sticking it in an easy access cash ISA straight away ( at end of Feb when you get it). New Isa year starts early April, gives you a bit of time to think and you haven't lost the previous years ISA allowance.
I'd suggest sticking it in an easy access cash ISA straight away ( at end of Feb when you get it). New Isa year starts early April, gives you a bit of time to think and you haven't lost the previous years ISA allowance.
gregf40 said:
You can get 4.4% fixed for 3 years with LandBay: https://landbay.co.uk/lenders/
Beats any ISA and very little risk.
I'm not sure I'd agree with very little risk, it is also not covered by FSCS so you wouldn't get your money back if it all went belly up as you would with an ISA/Bank deposit.Beats any ISA and very little risk.
condor said:
Have you got another job lined up? If not, you might need that money to fund a business venture.
I'd suggest sticking it in an easy access cash ISA straight away ( at end of Feb when you get it). New Isa year starts early April, gives you a bit of time to think and you haven't lost the previous years ISA allowance.
New job lined up and on a decent sized salary increase from my current place, so something has gone horribly, horribly wrong if I need access to it I'd suggest sticking it in an easy access cash ISA straight away ( at end of Feb when you get it). New Isa year starts early April, gives you a bit of time to think and you haven't lost the previous years ISA allowance.
silverous said:
gregf40 said:
You can get 4.4% fixed for 3 years with LandBay: https://landbay.co.uk/lenders/
Beats any ISA and very little risk.
I'm not sure I'd agree with very little risk, it is also not covered by FSCS so you wouldn't get your money back if it all went belly up as you would with an ISA/Bank deposit.Beats any ISA and very little risk.
If you want sub inflation returns - then stick it in an ISA. If you want to actually make something you have to accept some degree of risk - as the OP said he is willing to
gregf40 said:
Not sure how it 'could all go belly up'...you are providing finance for numerous mortgages secured against buy to let properties with low LTV's.
If you want sub inflation returns - then stick it in an ISA. If you want to actually make something you have to accept some degree of risk - as the OP said he is willing to
The question has to be, who is the end user for these things? Once the company of taken their arrangement hair cut etc then I guess the end user is getting funding at around 5%? With a good credit history and decent LTV ration you can currently fund BTL at circa 2.5%. So why pay double? I can only assume that the borrows don't have access to cheaper loans.If you want sub inflation returns - then stick it in an ISA. If you want to actually make something you have to accept some degree of risk - as the OP said he is willing to
Draw from that whatever conclusion you wish.
I am not bashing the idea of it, just pointing out some observations about the perspective risk v return.
gregf40 said:
Not sure how it 'could all go belly up'...you are providing finance for numerous mortgages secured against buy to let properties with low LTV's.
If you want sub inflation returns - then stick it in an ISA. If you want to actually make something you have to accept some degree of risk - as the OP said he is willing to
Providing any finance to someone is a risk - the risk that they default for example. I'm not suggesting an ISA is suitable for the OP but disagreeing with simply questioning your assertion that it is low risk.If you want sub inflation returns - then stick it in an ISA. If you want to actually make something you have to accept some degree of risk - as the OP said he is willing to
gregf40 said:
You can get 4.4% fixed for 3 years with LandBay: https://landbay.co.uk/lenders/
Beats any ISA and very little risk.
Don't want to make a big deal out of this, but as you are an investor in this company, this isn't a strictly impartial suggestion to the OP.Beats any ISA and very little risk.
It may be a great investment opportunity for the OP, but it would be worth declaring an interest when promoting a particular course of action, imo
EddieSteadyGo said:
Don't want to make a big deal out of this, but as you are an investor in this company, this isn't a strictly impartial suggestion to the OP.
It may be a great investment opportunity for the OP, but it would be worth declaring an interest when promoting a particular course of action, imo
I am both an investor and and lender through them It may be a great investment opportunity for the OP, but it would be worth declaring an interest when promoting a particular course of action, imo
trowelhead said:
In seriousness though, will check out land bay. Currently using assetz capital.
Cheers - not as high interest rates as AC off the top of my head but it has security which very few P2P lenders offer which makes it attractive to those wanting lower risk Lots of information here for anyone interested in P2P lending/saving:
http://www.moneysupermarket.com/savings/peer-to-pe...
Hi I am a representative of Landbay and while I am not going to make a pitch for our site and product here - I would like to highlight one key i error that the above comment has made. We are regulated by the FCA - all P2P platforms are covered by an interim permission - the register can be found here : http://fca-consumer-credit-interim.force.com/CS_Re... and if you type in our number (661952) you will see the appropriate permissions that we hold. We are also a member of the P2PFA.
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