I have £105,000, what to do with it?
Discussion
I have £105,000 that I want to put into a savings account.
I may need access to it at some point within the year although there is a slim chance of this happening.
I also cannot risk loosing any unfortunately so a trip to Lamborghini Reading (unfortunately) isn't going to happen.
The best rate I can find is 2.5%, is there a better way to gain interest on the amount?
I may need access to it at some point within the year although there is a slim chance of this happening.
I also cannot risk loosing any unfortunately so a trip to Lamborghini Reading (unfortunately) isn't going to happen.
The best rate I can find is 2.5%, is there a better way to gain interest on the amount?
Manchester BS pay 3.06% and allow up to 3 withdrawals per year without penalty, but with a max £50k deposit.
Northern Rock are up next with 2.75% and no restrictions on withdrawals. £100k max
Note that it may be wise to limit £85k with any one bank else it exceeds the UK protection.
You can beat those rates but only when including a bonus received after 12 months, which may not work out in your case.
It would also be worth topping up your cash ISA if you have not already done so.
Northern Rock are up next with 2.75% and no restrictions on withdrawals. £100k max
Note that it may be wise to limit £85k with any one bank else it exceeds the UK protection.
You can beat those rates but only when including a bonus received after 12 months, which may not work out in your case.
It would also be worth topping up your cash ISA if you have not already done so.
Do you have a substantial capital gains or income tax liability either from this tax year or last tax year?
If so, AND you can tie up up to 50% of it for 3 years, consider investing it in a SEIS startup.
Or stick it in a bank
Or buy some shares in big blue chip stock (Shell for example).
If so, AND you can tie up up to 50% of it for 3 years, consider investing it in a SEIS startup.
Or stick it in a bank
Or buy some shares in big blue chip stock (Shell for example).
johnfm said:
Do you have a substantial capital gains or income tax liability either from this tax year or last tax year?
If so, AND you can tie up up to 50% of it for 3 years, consider investing it in a SEIS startup.
Or stick it in a bank
Or buy some shares in big blue chip stock (Shell for example).
I could have 50% tied in for 3 years however I really wouldn't want to unless the gains are substancial?If so, AND you can tie up up to 50% of it for 3 years, consider investing it in a SEIS startup.
Or stick it in a bank
Or buy some shares in big blue chip stock (Shell for example).
Nobody said coke and hookers yet?
Coke and Hookers.
Since you need immediate access, I think you've probably got quite a good deal there.
If it was a long term investment, I'd be inclined to go for a flat or house, and rent it. Yes the housing market may crash a bit more, but the only thing that does is drive people to rental property. And the market will recover in the long term. Around here £105k would get you somewhere in the region of £6000 a year in rent pre tax.
Coke and Hookers.
Since you need immediate access, I think you've probably got quite a good deal there.
If it was a long term investment, I'd be inclined to go for a flat or house, and rent it. Yes the housing market may crash a bit more, but the only thing that does is drive people to rental property. And the market will recover in the long term. Around here £105k would get you somewhere in the region of £6000 a year in rent pre tax.
Original Poster said:
Natwest sounds interesting as well, thanks!
Will have to check on the ISA side of things, I don't believe there is anything in it, I suppose that should be my first point of call?
I would say so, tax free, only a small percentage of your sum but might as well take advantage. The NatWest offer is tied up for 1 year I think.Will have to check on the ISA side of things, I don't believe there is anything in it, I suppose that should be my first point of call?
If you aren't prepared to take any risk then there isn't really any point asking what to do with it - just stick it in a bank account.
Whether you get 2.5% or 3% - it's not going to make much difference. Cash ISA's are a complete waste of time IMO.
Maybe use it to offset a mortgage - probably the most tax efficient thing to do but still giving you access.
Whether you get 2.5% or 3% - it's not going to make much difference. Cash ISA's are a complete waste of time IMO.
Maybe use it to offset a mortgage - probably the most tax efficient thing to do but still giving you access.
DayTrader said:
If you aren't prepared to take any risk then there isn't really any point asking what to do with it - just stick it in a bank account.
Whether you get 2.5% or 3% - it's not going to make much difference. Cash ISA's are a complete waste of time IMO.
Maybe use it to offset a mortgage - probably the most tax efficient thing to do but still giving you access.
Explain. Why are ISA's a waste of time? Whether you get 2.5% or 3% - it's not going to make much difference. Cash ISA's are a complete waste of time IMO.
Maybe use it to offset a mortgage - probably the most tax efficient thing to do but still giving you access.
My view for what it's worth. In the current environment you either want to be very,very conservative or quite agressive. People should have learnt from 2007/8 that banks paying high interest rates are doing so for a reason i.e. because they find it harder to borrow moeny in the wholesale money markets.
Givenm the macro backdrop you should AVOID putting money in the bank accounts paying the high interest rates. There is no such thing as free risk....and the interest rate reflects some but not all of the risk....
Surely that's obvious to people ?!?! Think Northern Rock, Icesave etc etc
Givenm the macro backdrop you should AVOID putting money in the bank accounts paying the high interest rates. There is no such thing as free risk....and the interest rate reflects some but not all of the risk....
Surely that's obvious to people ?!?! Think Northern Rock, Icesave etc etc
Jimslips said:
Explain. Why are ISA's a waste of time?
Though not my post;1. For that sum only a small amount could be sheltered in a cash ISA - £5340 now and a little more next FY - 20 years to put it all in at current limits.
2. With interest rates so low the tax advantage is small.
3. Most ISAs mirror other savings accounts in giving a good rate for a while then dropping to negligible levels so you have to keep a keen eye on them and shift them around - which can leave void periods with no interest.
4. No cash ISA gives an inflation-matching rate.
I don't deny that if you want to have cash on deposit you'd be foolish not to use your cash ISA allowance.
I'd not put it all on a single big blue chip, even an oil major - BP anyone?!
So what to do? Others have plenty of advice...
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