So I have come into a bit of money, sadly, not for a happy reason, someone has passed. 
Do any of you lads invest and what are your thoughts?
I know bank interest rates are poor and I am a bit reluctant to gamble on the stock market, potential for losing. I also have heard that you should spread the money between banks in case they go out of business, usually guarantee up to 75k per account
Any feedback appreciated. And I don't need to know your actual figures but interest rates and terms would be nice
Do any of you lads invest and what are your thoughts?
I know bank interest rates are poor and I am a bit reluctant to gamble on the stock market, potential for losing. I also have heard that you should spread the money between banks in case they go out of business, usually guarantee up to 75k per account
Any feedback appreciated. And I don't need to know your actual figures but interest rates and terms would be nice
In reply to Post #1
Firstly sorry for your loss.
I would look at a stocks and shares isa as a start. Good tax free growth and add to it later. Fidelity has always done well for me but lots out there with various risks.
Premium bonds would be another tax free investment, normally not quite so good but still a reasonable tax free way to invest a larger amount.
Firstly sorry for your loss.
I would look at a stocks and shares isa as a start. Good tax free growth and add to it later. Fidelity has always done well for me but lots out there with various risks.
Premium bonds would be another tax free investment, normally not quite so good but still a reasonable tax free way to invest a larger amount.
In reply to Post #2
Thanks Ian
Will look at fidelity, I already have a pension with them.
Never thought of premium bonds, will have a look at those too, thanks pal
Thanks Ian
Will look at fidelity, I already have a pension with them.
Never thought of premium bonds, will have a look at those too, thanks pal
If you want to grab a bit of interest while you make up your mind Monzo give 4.6% in their savings pot up to £100K. You can withdraw it next day when needed.
In reply to Post #1
www.moneysavingexpert.co.uk
The above site will have loads of info, tables for all the best buys when it comes to saving with links to the providers, very easy to navigate.
Don't hang around, the rates in the savings market are dropping quite a bit of late.
www.moneysavingexpert.co.uk
The above site will have loads of info, tables for all the best buys when it comes to saving with links to the providers, very easy to navigate.
Don't hang around, the rates in the savings market are dropping quite a bit of late.
In reply to Post #4
Will look at that. Thank you
Will look at that. Thank you
In reply to Post #5
Sorry for your loss, I had same thing happen to me a couple of yrs ago. I put the safe max amount in my bank then the rest in premium bonds. I then put some more in pbs in the Mrs name.on average this year we have won usaly around £300 a month. She had 1 win at 1k I've had a couple at 600. Its totally safe and can be withdrawn when ever you want or need.
In reply to Post #1
In your shoes, I would put whatever amount you are happy with as emergency / short term savings (say 5 years worth) in cash accounts / cash ISA's - anything above that you don't think you will need for at least 10 years would get fed in to a Stocks & Shares ISA, as otherwise you are just losing out to inflation.
I use Marcus for standard savings / Cash ISA's - currently 4.55%, better rates are available, but I like them as transfers are pretty much instant. I also have some fixed rate savings at 6.20%, but you can't get that now. (it's guaranteed up to £85K with any single bank for standard savings accounts).
I use Vanguard's FTSE Global All Cap fund for investments, which is well diversified, and for perspective in the last 5 years has returned +4.31%, +25.49%, -4.90%, +10.81% & +19.01%, despite Covid / Ukraine. Of course it can go down lots too, so you have to be prepared to ride the peaks & troughs.
I don't bother with Premium Bonds as I think you can get better returns on standard savings accounts at present, although they do have a place if you want to avoid tax on savings, and like having a flutter.
And most importantly, make sure you are putting the maximum you can in your pension, to utilise the tax relief, especially if a higher rate payer.
In your shoes, I would put whatever amount you are happy with as emergency / short term savings (say 5 years worth) in cash accounts / cash ISA's - anything above that you don't think you will need for at least 10 years would get fed in to a Stocks & Shares ISA, as otherwise you are just losing out to inflation.
I use Marcus for standard savings / Cash ISA's - currently 4.55%, better rates are available, but I like them as transfers are pretty much instant. I also have some fixed rate savings at 6.20%, but you can't get that now. (it's guaranteed up to £85K with any single bank for standard savings accounts).
I use Vanguard's FTSE Global All Cap fund for investments, which is well diversified, and for perspective in the last 5 years has returned +4.31%, +25.49%, -4.90%, +10.81% & +19.01%, despite Covid / Ukraine. Of course it can go down lots too, so you have to be prepared to ride the peaks & troughs.
I don't bother with Premium Bonds as I think you can get better returns on standard savings accounts at present, although they do have a place if you want to avoid tax on savings, and like having a flutter.
And most importantly, make sure you are putting the maximum you can in your pension, to utilise the tax relief, especially if a higher rate payer.
In reply to Post #8
Thanks Rich. Been having a look at the premium bonds site. Going to get some
Thanks Rich. Been having a look at the premium bonds site. Going to get some
In reply to Post #9
Thanks for that Simon, that's brilliant advice
I wondered why people were saying if you invest in shares it should be with a long term view, I just thought you bought them low and sold them high as soon a you could and repeated the cycle
Looked at the Vanguard site, thank you for that. Do you just leave your capital in and they just send you anything it's made every year or month then?
Do you pay tax on it?
Thanks for that Simon, that's brilliant advice
I wondered why people were saying if you invest in shares it should be with a long term view, I just thought you bought them low and sold them high as soon a you could and repeated the cycle
Looked at the Vanguard site, thank you for that. Do you just leave your capital in and they just send you anything it's made every year or month then?
Do you pay tax on it?
In reply to Post #11
Hi Chris, as people say Premium Bonds can be good but it's about luck really and the more you have the better your chances (max is 50k) in the last year my return has been just over 5% so as good as most savings accounts or ISA's, I have ISA's as well but you have to remember you can only put 20k in each year from 6th April but what you can do is transfer an old ISA to a better one and it doesn't count towards your limit so in theory you could just keep doing that but as has been said it's about rates which are looking like dropping so by next April the rates that are about now won't be there probably, as for savings accounts they are an option but remember that you have to pay tax on savings interest over a grand, although that does depend on what you are earning of course, if you are on a state pension and have a private pension as well there is a complicated factor for working out savings interest tax
Hi Chris, as people say Premium Bonds can be good but it's about luck really and the more you have the better your chances (max is 50k) in the last year my return has been just over 5% so as good as most savings accounts or ISA's, I have ISA's as well but you have to remember you can only put 20k in each year from 6th April but what you can do is transfer an old ISA to a better one and it doesn't count towards your limit so in theory you could just keep doing that but as has been said it's about rates which are looking like dropping so by next April the rates that are about now won't be there probably, as for savings accounts they are an option but remember that you have to pay tax on savings interest over a grand, although that does depend on what you are earning of course, if you are on a state pension and have a private pension as well there is a complicated factor for working out savings interest tax
In reply to Post #11
I wondered why people were saying if you invest in shares it should be with a long term view, I just thought you bought them low and sold them high as soon a you could and repeated the cycle
You can do that, and it's called trading, and is risky unless you know what you are doing (most people don't, and lose money, including many whizz kid fund managers). The idea is you take a long term view (10 years +), pick a diversified global fund like the one I mentioned, and then keep investing, ride the up's and down's (which are a certainty), and just leave it alone to grow. It's virtually impossible to lose money over the long term as all data shows, and will out perform inflation by a fair degree, which is what you want.
Looked at the Vanguard site, thank you for that. Do you just leave your capital in and they just send you anything it's made every year or month then?
You have 2 options ; a General Investment Account (GIA) which will accept unlimited payments in, but is subject to tax on gains when you withdraw, and an ISA option which is limited to £20k per year and tax free on all growth and withdrawals. You can then choose either an accumulation option, where all gains are re-invested for growth, or an income option, where any gains are paid out.
Do you pay tax on it?
See above, not if it's in an ISA.
Probably worth you doing a bit a research, there's plenty of info on YouTube / Money saving Expert. Or if you want to leave it to somebody else to sort out, and depending on how much you actually want to invest, you can use an IFA, and pay them to do it for you (I'm far too tight for that).
I wondered why people were saying if you invest in shares it should be with a long term view, I just thought you bought them low and sold them high as soon a you could and repeated the cycle
You can do that, and it's called trading, and is risky unless you know what you are doing (most people don't, and lose money, including many whizz kid fund managers). The idea is you take a long term view (10 years +), pick a diversified global fund like the one I mentioned, and then keep investing, ride the up's and down's (which are a certainty), and just leave it alone to grow. It's virtually impossible to lose money over the long term as all data shows, and will out perform inflation by a fair degree, which is what you want.
Looked at the Vanguard site, thank you for that. Do you just leave your capital in and they just send you anything it's made every year or month then?
You have 2 options ; a General Investment Account (GIA) which will accept unlimited payments in, but is subject to tax on gains when you withdraw, and an ISA option which is limited to £20k per year and tax free on all growth and withdrawals. You can then choose either an accumulation option, where all gains are re-invested for growth, or an income option, where any gains are paid out.
Do you pay tax on it?
See above, not if it's in an ISA.
Probably worth you doing a bit a research, there's plenty of info on YouTube / Money saving Expert. Or if you want to leave it to somebody else to sort out, and depending on how much you actually want to invest, you can use an IFA, and pay them to do it for you (I'm far too tight for that).
In reply to Post #12
Some good advice there Henry, thank you.
As you and others have mentioned, the premium bonds sound a good option so I have bought some. Thank you everybody who fed back on this, appreciated
I didn't know you had to pay tax on savings interest, what's the rate, will have to have a Google
So with the ISA you put 20k each year in and don't pay tax on it?
Not sure if savings accounts are a really viable option then, of course they are better than nothing, plus I read you need to split your money and have no more than 75k in one account. I guess you would end up swapping accounts over all the time chasing interest rates.
Some good advice there Henry, thank you.
As you and others have mentioned, the premium bonds sound a good option so I have bought some. Thank you everybody who fed back on this, appreciated
I didn't know you had to pay tax on savings interest, what's the rate, will have to have a Google
So with the ISA you put 20k each year in and don't pay tax on it?
Not sure if savings accounts are a really viable option then, of course they are better than nothing, plus I read you need to split your money and have no more than 75k in one account. I guess you would end up swapping accounts over all the time chasing interest rates.
In reply to Post #13
That's great advise again Simon and I appreciate that. Thank you
I looked at the graphs and it's a good average. I will have a look in more detial at shares etc and try to do a bit of research
Or if you want to leave it to somebody else to sort out, and depending on how much you actually want to invest, you can use an IFA, and pay them to do it for you (I'm far too tight for that).
Me too
That's great advise again Simon and I appreciate that. Thank you
I looked at the graphs and it's a good average. I will have a look in more detial at shares etc and try to do a bit of research
Or if you want to leave it to somebody else to sort out, and depending on how much you actually want to invest, you can use an IFA, and pay them to do it for you (I'm far too tight for that).
Me too
In reply to Post #15
Shares going up and down has been mentioned but not dividends, you'll get those too on a lot of Shares, some annually.
If you're in a high tax bracket and your wife isn't ( and you trust her 😂 ) put some money in her name if your investments might incur tax.
Shares going up and down has been mentioned but not dividends, you'll get those too on a lot of Shares, some annually.
If you're in a high tax bracket and your wife isn't ( and you trust her 😂 ) put some money in her name if your investments might incur tax.
If you want zero risk look at cash ISA's.
If you still have a mortgage, look at paying it off or a chunk of it.
Consider the rate you are currently on against the current ISA rates along with any terms and conditions around early repayments.
If you still have a mortgage, look at paying it off or a chunk of it.
Consider the rate you are currently on against the current ISA rates along with any terms and conditions around early repayments.
In reply to Post #17
I don't have a mortgage.
Cash ISAs interest rates seem pretty low to me. I was also looking at the government savings scheme, think that comes out around 4% but i will get taxed on that i guess
I don't have a mortgage.
Cash ISAs interest rates seem pretty low to me. I was also looking at the government savings scheme, think that comes out around 4% but i will get taxed on that i guess
In reply to Post #18
I use this to compare interest rates
LINK
There might be some names that are not on the high street and you are not familiar with, but in the past I've dealt with names such as Cynergy, Oaknorth and Gatehouse and never had a problem
I use this to compare interest rates
LINK
There might be some names that are not on the high street and you are not familiar with, but in the past I've dealt with names such as Cynergy, Oaknorth and Gatehouse and never had a problem
In reply to Post #19
They will all have the 85k government safety net.
They will all have the 85k government safety net.
In reply to Post #20
Yes. I know people who will only deal with high street names, they won't deal with any bank that they can't walk into.
I have mentioned alternatives but if that's what they are comfortable with then that's up to them
Yes. I know people who will only deal with high street names, they won't deal with any bank that they can't walk into.
I have mentioned alternatives but if that's what they are comfortable with then that's up to them
In reply to Post #19
Looking at those pal
Looking at those pal
In reply to Post #22
Can you put money into an account and leave it there for a year or so?
If so looked at Fixed Rate accounts.
Do it soon though as the interest rates of all savings accounts will be dropping very soon now the Bank of England have announced a drop in the base rate.
Can you put money into an account and leave it there for a year or so?
If so looked at Fixed Rate accounts.
Do it soon though as the interest rates of all savings accounts will be dropping very soon now the Bank of England have announced a drop in the base rate.
In reply to Post #23
Nice one pal, saw they were dropping the rates
Nice one pal, saw they were dropping the rates
For longer term (5-10 years) it might be worth looking into silver, both bars and legal tender.
It's used in a lot of applications, is at a low price unlike gold.
Or shares in pharm and munitions, they're always a big seller.
Unfortunately for humanity, fortunately for vultures.
It's used in a lot of applications, is at a low price unlike gold.
Or shares in pharm and munitions, they're always a big seller.
Unfortunately for humanity, fortunately for vultures.
With Trump back in power 👍🏼 was in the US when it happened as well 😀
I would look at bitcoin, if you have a pension worth investing some.
I would look at bitcoin, if you have a pension worth investing some.
In reply to Post #26
Have you seen how much Bitcoin is at the moment
2023 $16000, currently at an all time high, missed the boat $91500!!!
I certainly wouldn't be buying any of that. I think Bitcoin will crash
Agree, though, worth keeping an eye on crypto, they are also saying AI
Have you seen how much Bitcoin is at the moment
2023 $16000, currently at an all time high, missed the boat $91500!!!
I certainly wouldn't be buying any of that. I think Bitcoin will crash
Agree, though, worth keeping an eye on crypto, they are also saying AI
In reply to Post #27
Yep about 90k, was a lot less a few years ago and will likely go a lot higher over the next few years so for some a real difference when they retire
Lot of doubters about AI but I'm sure it will outlast us humans.
Yep about 90k, was a lot less a few years ago and will likely go a lot higher over the next few years so for some a real difference when they retire
Lot of doubters about AI but I'm sure it will outlast us humans.
In reply to Post #28
If I have the bitcoin now I would sell if I had made so much, surely can't go any higher!
Lot of doubters about AI but I'm sure it will outlast us humans
And we all thought Sci-fi was far fetched. Maybe the writers of terminator knew something we didn't
If I have the bitcoin now I would sell if I had made so much, surely can't go any higher!
Lot of doubters about AI but I'm sure it will outlast us humans
And we all thought Sci-fi was far fetched. Maybe the writers of terminator knew something we didn't
Consider putting it into your pension. You can put in up to £60K annually, goes in tax free.
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