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£300,000 to invest - Best return? Quick access not essential.

robo989 Avatar
6y, 11m agoPosted 6 years, 11 months ago
Hi there, I've been sitting on a compensation payout since April of around £480,000. I've got about £300,000 of that available for a long term investment and I hope to live basically on the interst (being paid yearly along with my current benefits). Currently the money is with Abbey at about 3% NET roughly. I'm not really happy where it is though as I've seen the AA deal that was posted a few months ago offering 5% with withdrawels available losing only 90 days interest of the amount withdrawn.

I see this is no longer available but they are offering the same rate but with a massive amount lost if you make a withdrawel...

Just wandering if anyone would be so kind as to recommend a good place to put the money as I'm feeling pretty lost with it all at the moment. I did speak to a financial advisor recommended to us, but I found the guy quite frankly very pushy and the return didn't seem very good and a little risky.

Please help a confused fool :)

Many thanx
robo989 Avatar
6y, 11m agoPosted 6 years, 11 months ago
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Responses/page:
#1
Check out the FSA website they have table of the best rates arround
#2
Publicising you have that lot, with the best will in the world, watch out for people offering you 'advice' by PM!
#3
BlackCloud;7339196
Publicising you have that lot, with the best will in the world, watch out for people offering you 'advice' by PM!

+1 :thumbsup:

best bet is going to another Financial Advisor regulated by the FSA

http://www.unbiased.co.uk/
#4
:thumbsup:Oh right, thanks for the tip. Really didn't know where to ask. The banks are practically useless and don't seem to offer the same deals on the high street as online so fine print can't really be discussed. Coupled with nothing seemingly that appealing it's hard to be postive with anywhere...

Nobody want to give some actual recommendations?

Sorry for the cheek and thanx for posting. :)
#5
http://www.unbiased.co.uk/_uploads/docs/screenvoucher.jpg
#6
Buy a house and rent it out
#7
Buying a house and renting it is something I've considered but because of where I live (sw wales not that much property up for sale at a realistic price) and not being able to drive as a result of the accident I had that led to me receiving the compensation, not sure it's the best idea.


I saw this on the FSA website (thanx for the idea to go there)...Is this pretty "decent" as far as investments go for a 5 year term......?

Product name: Web Saver - 5 Year Term

Product provider:
Halifax

Telephone:
08451221348

Website:
[url]www.halifax.co.uk[/url]

Address:
Trinity Road
Halifax
West Yorkshire
HX1 2RG




Interest rate details:


This table shows the interest rate for to this account, based on the details you have entered.

The term of this account is 5 years.

Step interest rate
Step until/for
Step rate type

5.15%
Term
Fixed

This table shows interest rate tiers that apply for other amounts deposited in this account.

Balance from
Balance to
Gross rate
AER

-
£500 plus
5.15%
5.15%




Other product details:
AER:
5.15%

Interest paid:
Annually

Notice period:
Term

Other restrictions:
Yes, details below

Minimum balance:
£500

Minimum additional deposit:
n/a

Minimum withdrawal:
n/a

Opened via:
Internet

Access via:
n/a

Tax free:
No

Rate guarantee:
No

Restricted availability:
No

Stakeholder:
No




Other details:
Restrictions:
Withdrawal Conditions - No partial withdrawals permitted during term of account. The account can be closed before maturity provided it has been open for 3 months. If the account is closed early it will be subject to an interest penalty equivalent to 6 days' interest for each remaining month, or part of the month, of the term (minimum of 30 days).
The minimum age for this account is 11.


Thanx again people :)
#8
Bit of a risk to fix at 5% when increases in the base rate are potentially around the corner. However, I guess if you finish in 2 years time you will lose 6 days x 36 interest "only". You may find that there is a maximum limit on the balance too. Interest is only paid annually.
#9
:thumbsup:
pghstochaj
Bit of a risk to fix at 5% when increases in the base rate are potentially around the corner. However, I guess if you finish in 2 years time you will lose 6 days x 36 interest "only". You may find that there is a maximum limit on the balance too. Interest is only paid annually.


Okey gotach cheers :)

I have one more strange question...with tax bands...I understand the bank will automatically deduct 20% of the interest from the AER amount in tax before paying out right?

Reason I'm asking is because a "friend" is after a £100,000 loan offering 9% AER to me, and in their buisness plan they have deducted 30% from this for tax to give me roughly 6%....

Surely they should be deducting 20% or is it 22% on unearned income

(This is bearing in mind my total taxable income will be below the roughly £32k threshold and above the roughly £5k threshold)

Oooops....Getting technical now lol :)

Thanx in advance for any clarification with this...and all the replies already.
#10
Mate as I said earlier be wary of advice by PM and what you do with the money. Presumably if you have been injured or disabled that compensation money is to ensure you have a certain quality of life. Most of us are not used to having such a large amount to invest. Can you afford to lose £100k if your 'friends' business venture fails? If it was so rock solid a surity he would get it back wouldn't the bank be happy to fund him? Can you be sure he won't get on a plane and disappear? It's your money, and I'm a nobody to tell you what to do, but you look like you could be heading for trouble.
#11
BlackCloud
Mate as I said earlier be wary of advice by PM and what you do with the money. Presumably if you have been injured or disabled that compensation money is to ensure you have a certain quality of life. Most of us are not used to having such a large amount to invest. Can you afford to lose £100k if your 'friends' business venture fails? If it was so rock solid a surity he would get it back wouldn't the bank be happy to fund him? Can you be sure he won't get on a plane and disappear? It's your money, and I'm a nobody to tell you what to do, but you look like you could be heading for trouble.


That's good advice and I'm defo not doing anything risky. The friend in question is my previous landlord, we'll be going through a solicitor and he has a couple of flats and is doing a project converting a large barn into some holiday cottages. It's all above board and the money I'm lending will be secured on this flats that he owns outright. The reason he needs the money is that basically it's cheaper for him to do it this way and I'll see a higher return too...

It's not a definate yet or anything, I was more questioning his assumption of a 30% cut by the taxman on any interest that is paid out when I though it was 20%?

lol not taking what you've said the wrong way, it's very kind to post your views and appreciated :)

Hope I don't sound like some rich git and you could well be right, it is there to last a lifetime...lol you wouldn't believe how many times I've been told that from my cautious parents :oops:

Hard to know really, the people that do really know as in financial advisors...well...they all seem a bit sneaky.
#12
Take a look at a company called investec. They have a plan called "high 5" . This plan takes an average of the top 5 highest interest rates offered by other companies and applies it to your account. I'm not sure of limits but sounds a good plan overall. Good luck and take your time before making any decision :thumbsup:
#13
YOU COULD PUT SOME (RECOMMENDED IF PENSION AGE IS FAR AWAY) - OR ALL - OF THE CASH IN A PENSION PRODUCT AND THE GOVERNMENT WILL ADD A LARGE PERCENTAGE TO REFLECT YOUR INCOME TAX RATE (+40% IF A HIGHER-RATE TAXPAYER!).

FIND A DECENT FINANCIAL ADVISER AND PAY THEM FOR THEIR TIME! http://www.moneysavingexpert.com/savings/how-to-pay-for-financial-advice
#14
Abbey have also got a 2 Yr Fixed Rate Bond at 4.00% it does carry 120 days penalty interest of the amount withdrawn - I don't know when this offer will end as it is subject to demand.

You can open this over the phone and if you need anymore questions answered about the T&C's the advisors will be able to help you.

You can call them on 0800 389 9875 open until 17:00 today and we are fairly quiet so you should get through to someone quickly if you wanted to discuss your circumstances in more detail.
#15
http://www.smith.williamson.co.uk/about-us/our-people
try this link to Smith & Williams private FSA's i work for them at present so i can vouch for the company see the web link good Luck
#16
Are you looking at savings accounts, investments into markets or index trackers? If you're going for the markets, with that sort of amount I would suggest spreading your risk, don't put it all in one fund (even if its a fund-of-fund fund) - personally I'd put 30% in equity based investments (medium - high risk), 30% in bonds / fixed income (low risk) and 30% in property funds (usually low risk but hard to call at the moment), with the remaining % going into alternatives such as carbons, petroleum trusts or other non-standard investments.

You might want to look at investing in premium bonds given the size of investment (you can put £30,000 and your winnings will be tax free which might be a consideration given the amount of investment). You could look at property too, that sort of sum could easily let you by a 2-3 bedroom flat in suburban London which would have good stable renting value. You could generate income from that, it would be worth considering if you can sit on the sum for 7-10 years. The best thing to do is read up on all the types of investments and see which you think is best for you, and maybe speak to an IFA, but have a degree of caution what ever you do.
#17
In the current financial climate your best bet is to avoid any FSA, avoid any private arrangement with your landlord and don't buy a house (to let) - prices will certainly go down in 2010. Pay off all your debts and invest only £50000 in any one financial institution, so 6 investments in total. So if any place goes bust you get your money back. Avoid accounts with more than a two year lock in given anticipated interest rate rises and avoid those with no UK backed compensation (e.g. avoid ING and Post Office). Take your interest monthly as income (i.e. do not not accumulate it an account so that you only ever have the £50000 in any one account) and reinvest the income in a sixth building society or spend it!. Also check that each institution has its own £50000 limit (some share this). More info at http://www.moneysavingexpert.com/savings/savings-accounts-best-interest. An alternative is to invest in a government backed savings where all your money is guaranteed e.g. NS & I (and possibly Northern Rock). With careful picking you should be able to get an average rate of interest higher than inflation and so let your money grow in real terms. You might also want to keep back £50000 in a readily accessible account to take immediate advantage of the next AA style account that comes along in the new year. When the economy really picks up and there is less uncertainty in the markets then you can change your tactics (probably in 3 or 4 years) to maximise your income through shares and bonds etc.. Best of luck.
#18
I'd personally go with buying a house and renting it out too (though maybe only use 150k on it)

Property will only go up in value, plus you'll be earning money from the rent too.
#19
As chrisfdh mentioned, I wouldn't put it all in one place, spread it around.
Personnally I'd consider buying property (to rent) and land.
But your better of speaking to a 2 or 3 different financial advisor.

http://www.searchifa.co.uk/

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