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Since we paid off tne mortgage a few years ago, we've put that money aside for replacing the car in a year or twos time. Now got about £10k.
I have considered dividing it equally between C&H and something gravellish in titanium, but apparently this is not acceptable.
Any easy suggestions?
Without thinking too hard, Premium Bonds would be our go to in that situation.
What @himdubleyou said.
Or a fixed term savings account.
Or into a pension (potential for some tax relief)
Nationwide have a savings account that is paying around 5.5% but more appealing a regular savings one that pays 8% but limited to £200 a month but a good chunk of a bike in interest after 12 months combined with the rest in a high interest savings account
Personally wouldn’t go fixed term. Yes, you can always access it if needed but early withdrawal penalties will wipe out any extra interest.
Not a pension. Too tied in for your purpose.
Marcus? Interest rates are pretty good at the moment and it’s instant access.
ISA would be tax free if you can find instant access at a decent rate.
We spread our savings between a Santander 5+% instant access savings account (now discontinued...or rather reduced to a much lower interest for new accounts) and a couple of Barclays isas, one 1 year and one 2 year... mostly because we already had Barclays & Santander accounts! Thought about premium bonds but, whilst you may win bigger, the odds aren't in your favour to even match what the isas get
Premium bonds for the monthly thrill/disappointment.
something gravellish in titanium
You know you want to 😈
Regular savers are paying 6-8%, look at mse reg savers people keep posting lists. With 10 accounts you soon have 10k in there, takes all of 5 mins to set up each account, do it via apps. Takes a bit of managing tho.
Solar panels and a battery?<br /><br />
Have a look at Chip. They have some nice high interest accounts.
Cocaine appears to have the best returns.
Premium bonds aren't the attractive option they were now you can get guaranteed interest returns. Monzo are doing 4.6% on an instant access saving pot now, and you can smash as much as you want into it rather than a £200 per month trickle.
Latest I've seen estimates Premium Bonds at around 4.5% over a year - MrsMC and the kids have stuck their recent inheritances in there and seem to be doing quite nicely, but will check out the savings suggestions, thanks.
something gravellish in titanium
You know you want to
Not wanting to sound disrespectful, but if CGR Tis are now costing £5k, I need to rethink that one. Did have an interesting chat with a bloke with a lovely looking steel Stayer yesterday though...
CGR Tis are now costing £5k
Mine was £4500, but I’ve added a set of Ultegra C50 wheels, tubeless GP5000 tyres, Hope seat post and stem, XT SPDs, a new saddle, and a Stages dual-sided powermeter. So I’m into it for about £7000.
Will be keeping it for a good ten years unless I break it, so it was worth the investment.
Oh, and my serious answer, is I just bang spare money into my Vanguard ISA in their Lifestrategy 100% fund. Or the SIPP I have with them using the same fund if I think I can do without the money for a much longer term.
Ford Money is paying 4.95% on instant access which is better than Marcus at 4.60% at the mo.
Their instant access ISA is 4.60% too which might be competitive - I've not checked
When do you think you're likely to need it?
Banks are, generally, crap at telling existing customers about new/better savings accounts.
Go to MSE to check latest best deals; it's (probably) the most comprehensive source for everything you need to know and you can then take an informed decision.
Cash ISA, fixed term inc bonds, regular saver, easy access etc.
Natwest are doing a 1 year ISA at 5.5, as an existing customer that may be an easy option with little risk of needing it before then
MSE have some interesting ideas, I will waste the rest of the evening comparing and contrasting...
Don't be kidded by those 'regular saver' interest rates , check with Martin Lewis , you only get half the rate at the end of your term, bit of a con for the innocent and no lump sum pay in just monthly feed. Yorkshire Building Society are paying over 5% at the moment on a rainy day account up to £10,000 and I'm sure others are as well, if you want your interest paid monthly then you have to shop around a bit.
Binners’ G-string
What would 10k get me....🤢
If you can wait 3 years NS&I green bonds get you 5.7%. (They just closed their Guaranteed Income and Gowth bonds, which offered even better rates.) You can't continue to pay into it though.
https://www.nsandi.com/products/green-savings-bonds
Virgin Money are doing a fixed rate ISA of 5.75% which is better than the average from Premium Bonds - moved a lot of my money out of bonds as the actual return is usually less than they say and they right royally screwed savers off during COVID.
What would 10k get me….🤢
Probably more than you will ever want or need in the way of PTSD!
Another vote for Chip as the instant access rate is just under 5%.
I'd take the family skiing next year and buy an emtb in the sales.
"Latest I’ve seen estimates Premium Bonds at around 4.5% over a year "
Please don't accept this as gospel. Martin Stewart Money Savings expert has the full detail, but to summarise, this percentage is based on the mean average, the modal average of Premium Bond Winners is nearer 1.4%.
Ulster bank is 5.2% instant access for 5k plus. I d do that and drip into the regular savers at 6-8%.
Engine rebuild for my latest car?
I will take you for a drive in it if you pay for the rebuild.
I know that I may just have been lucky but I,ve achieved £2000 tax free return on £30000 this year with 2 months still to go and , of course , I could always win big .
£10k would result in binners g-string bulging hugely.
Sorry if you can't erase that image from your mind.
Coventry Building Society have 1 year bond at 5.4% or 2 year ISA at 5.5%.
Other building societies will probably be similar as the aim is to break even and cover costs while giving OK but not amazing rates from both mortgages and savers, not paying shareholders big bucks.
Nationwide is mentioned above, Skipton and Yorkshire BS are often competitive. YMMV.
give it to me. I promise to spend it wisely on bolivias finest and ladies of ill repute
tj - stop fibbing.
With some, or all, of MCTD's money you would be straight down to the vintage clothing shop at leith market to buy more crushed velvet smoking jackets and cravats.
There would be nothing left over for bolivian marching powder or a good time had by all lady.
£10k
In STW speak buttons.
Cocaine appears to have the best returns.
At least you'll think it does.
Economics is a very long way from being my forte but,
A "high" 5% return on your investment when inflation is, what, 6%? That's not an investment surely, that's "how can I be the least worst off in a couple of years compared with how I am now?"
If I had £10k burning a hole in my pocket I think I'd either be going on holiday and throwing the rest at my pension, or looking at something like a new kitchen. How much would spending ten grand on your home add to the market value of it?
MCTD's money is to fund a replacement car so suggestions of...holidays, bikes, narcotics etc are possibly entertaining but irrelevant.
MSE is the start point.
We expect inflation to fall to around 5% by the end of 2023. Then we expect it to keep on falling and reach our 2% target in the first half of 2025 - Bank of England
The National Institute of Economic and Social Research (NIESR) forecast inflation will fall from 7.9% now to 5.2% by the end of 2023 but will be slower to drop thereafter, averaging just above the BoE's 2% target in 2025, 2026 and 2027.
LOLz@ frank
a return train ticket you buy 5 minutes before the train leaves?
a return train ticket you buy 5 minutes before the train leaves?
£6.70 for my commute to work this morning
already got a sonder ti, so an easy access for time being while you decide, hsbc bonus 4.4% / monza 4.1% / santander 5.08%
the stayer is nice, the ribble bike will likely reduce in the coming months, could see them being a casualty.
remember if you are high rate tax payer over £500 interest is taxable inline with income tax, 5.00001% will take you there. so maybe a joint account/single in lower tax payers name
if you are more risk seeking go for a ftse100 miner or bank, dividends are pretty decent at present plus upside potential..
remember if you are high rate tax payer over £500 interest is taxable inline with income tax, 5.00001% will take you there. so maybe a joint account/single in lower tax payers name
Can you not just bung it in an ISA to avoid this?
Meanwhile elsewhere on STW, "I wouldn't buy from Starbucks / [insert other corporate chain here] because they don't pay tax properly." What's the threshold below which tax evasion on wealth isn't just acceptable but recommended?
I'm being facetious of course. I'd probably want to do the same if I were fortunate enough to be in that situation. But it does feel a little uncomfortable to then complain about rich people with offshore bank accounts.
£6.70 for my commute to work this morning
I got told 250 quid. Rather walk.
If you want to turn it into £7500 in a matter of weeks then just do what I've done and gamble it on high-risk stocks via eToro... 🙁
remember if you are high rate tax payer
Not an issue us more humble civil servants have to worry about.
cool, you'll pay basic rate tax on anything above £1k [ie 10.000001% on £10k] , as pointed out above, in an ISA its tax free
OK lets say I have £250'000 spare?
Find the lowest mileage, immaculate facelift Mini R53 John Cooper Works you can find with the optional Recaro or Sparco seats and lock it away somewhere safe for 10 years.
OK lets say I have £250’000 spare?
Split between pension, investments, cash savings, property and a round the world ticket including a bike bag for me.....
Given it's cash, not a lot of money (in investment terms), and you know what to spend it on the obvious answer is just to put it in the best savings account your current bank offers
But then I looked at my banks rates and they really are woeful given the BoE rate is 5.25% and inflation is maybe around 7% (but has been up around 10%)
https://www.co-operativebank.co.uk/products/savings/interest-rates/
cash ISA 1.8%? WTF?
The fixed rate cash isa are probably the best bet. Personally, the difference between what your bank offers and MSE's best buy is probably not worth the hassle of doing something at a new bank.
https://www.firstdirect.com/savings-and-investments/savings/
There's always a catch - that headline 7% rate is great but you can't put a lump sum in to start and you can only save 3600 a year. Their standard ISA rate is 2.85 and their bonus saver (no withdrawals) is 4%. Those aren't bad.
No one mentioned Bitcoin and/or other crypto yet?!
I am not a financial advisor.
This is not financial advice......blah blah.
There’s always a catch – that headline 7% rate is great but you can’t put a lump sum in to start and you can only save 3600 a year. Their standard ISA rate is 2.85 and their bonus saver (no withdrawals) is 4%. Those aren’t bad.
We have managed to get a fixed term at 6.2% and regular savers at 5-5.8%. Plus extra to pension.
I think more importantly for me is to keep pressing on with savings while I can afford to...
Tinned food, MRE's and ammunition would be the best bet, maybe hard to get medicines as well going by the threads on this forum of late!
Cocaine appears to have the best returns.
In recently years the cartels have been taking over the avocado growing industry. Might get a better return.
tandem are doing 5% on their instance access savings account with no limits - that I am aware of.
Put some into Bitcoin for sure. I'm hoovering up my change to buy more.
In the last 10 years it has wielded a 71% annual compound return.
In the last 5 years alone it is up almost 300%.
As they say, owning Bitcoin is risky, not owning Bitcoin is even riskier.
Indeed it has. The price is highly volatile, which is why I referenced slightly longer timeframes.
Bitcoin mining has been responsible for c200 million tonnes of CO2 since 2009.
It's a small proportion of global CO2 production but given the continually increasing computing power required for bitcoin mining that number will increase.
Who are "they"?
I would also take a look at the CO2 produced by the traditional banking industry relative to Bitcoin. Granted at present the traditional banking industry serves many more people, but as Bitcoin matures the energy requirements will increasingly shift to renewable sources, much like all other energy consuming applications that are deemed as beneficial to mankind.
It isn't possible to make a valid comparison of CO2 production between bitcoin mining and the traditional banking industry.
Traditional banking must continually replenish notes and coins in circulation, it has significant property assets and operate data centres which are hugely energy intensive.
At today's price the value of all bitcoins is c£420 billion so c2100 tonnes of CO2 have been produced, on average, to mine 1 bitcoin.
Value of sterling in circulation today is c£95 billion; value of euro notes in circulation is c€1.3 trillion.
Also worth noting that the number of bitcoins can never exceed c21 million and it's estimated that limit will be achieved around 2140.
For reference there are about 19 million today.
Anyway, this won't help MCTD with his deliberations.
Of course it is almost impossible to measure the exact C02 footprint of traditional banking. Safe to say it is vast and far greater than Bitcoin.
It is worth noting though that the whole reason Bitcoin came about was to avoid having to use a third party - i.e banks.
Anyway there are other threads where this has all been argued ad nauseam.
But you hit the nail on the head there when you stated there will only ever be 21 million Bitcoin in existence, and with around 4 million already thought to be lost the case for investing in this area is stronger than ever IMO.
Good luck MCTD