what to do with 10K

[didds]

Ive 10K paid out from a saving vehicle recently. Its for a very definitive rainy day/future for one of my offspring - they don't know its there and lets just say although they are now just an adult if they are given it it won;t be there when they may need it. I'm not interested in discussing the legalities or morals of that approach. Me and that person's mum are in agreement this makes some sense at this stage of this person's life. I'm aware of the potential ramificationsof that ££ if I die when its in my name etc - we'll run with that risk etc.

So moving on...

It's where to keep 10K for a couple of years. We (the mum and I) have a bank saving account paying 0.1% or somethimng meaningless.
We can easily find a savings veghicle paying about 1% or marginally more.
We can fiddle and diddle about and use a TSB accounts and get and 3% on £1500

3% on 1.5K is £45. A year.

Santader offer 3% on the full 10K - so £300. But it would cost £60 for that "privilege" in 12 x £5 monthly fees. So its effectively 2.4%, or £240 for the year. maybe not that bad after all.

They both seem a lot of fraff for not that much money.

I guess its just the situation that anyone with short term cash has.

didds

[AleisterCrowley]

Yes, cash is rubbish at the mo...
NSANDI do the Guaranteed Growth 3 yr bond @ 2.2% but max £3k
Ratesetter or similar P2P ? Higher risk though (difficult to quantify)

[CryptoPlankton]

Santader offer 3% on the full 10K - so £300. But it would cost £60 for that "privilege" in 12 x £5 monthly fees. So its effectively 2.4%, or £240 for the year. maybe not that bad after all.

They both seem a lot of fraff for not that much money.

I guess its just the situation that anyone with short term cash has.

didds

Sorry, but are you sure that's correct? Santander 123 (with the £5/month fee) only pays 1.5% these days.

(Don't have any helpful suggestions, I'm afraid)

[staffordian]

Given that interest rates are still derisory, why not buy £10k of premium bonds. The lost interest isn't going to amount to much and you might end the two years with an extra million ( or more likely £25 if you are lucky )

[AleisterCrowley]

Rates are going up for PBs from December (to 1.4%, but this is not the expected return)

[didds]

Sorry, but are you sure that's correct? Santander 123 (with the £5/month fee) only pays 1.5% these days.

(Don't have any helpful suggestions, I'm afraid)

that's what MSM quoted me I am sure ... though nowI think about it I did think it was 1.5% same as you, cos the £60 fees I recall thinking dug deep into the interest received.

cheers

didds

[Gaggsy]

You could get a fixed 6% p.a. through something like Crowdstacker although obviously there are risks and the investment terms are sometimes longer than the 2 years you mentioned.

http://www.crowdstacker.com

Disclaimer - some directors at the company I work for are also directors of a company offering investment in a bond through Crowdstacker. Looks good to me but it's already reached its target.

[redsturgeon]

Since this is the Snug then perhaps you should look at investing in a barrel of single malt.

John

[dionaeamuscipula]

Since Didds Jr doesn't know anything about it, put £9,500 into the best locked up no risk account you can find.

Take the remaining £500 to a nice casino where they will treat you nicely. Pontoon (IIRC) or whatever it is called in a casino has the least worst bias towards the house (I just looked it up, I'm right. Followed by Craps and Roulette). Or just put it all on red. Have a lovely evening and if you win, hurrah! And if you lose, Didds Jr is none the wiser and will be just as happy with a £9,500 plus 1% interest nest egg as they would have been with a £10,000 plus 1% nest egg. Much more fun than premium bonds and could be a great story for the future.

Blackjack. yes, that's what its called. Expert in casino games me. You might want to take this level of expertise into account in deciding whether to actually do this.

DM

[redsturgeon]

Since Didds Jr doesn't know anything about it, put £9,500 into the best locked up no risk account you can find.

Take the remaining £500 to a nice casino where they will treat you nicely. Pontoon (IIRC) or whatever it is called in a casino has the least worst bias towards the house (I just looked it up, I'm right. Followed by Craps and Roulette). Or just put it all on red. Have a lovely evening and if you win, hurrah! And if you lose, Didds Jr is none the wiser and will be just as happy with a £9,500 plus 1% interest nest egg as they would have been with a £10,000 plus 1% nest egg. Much more fun than premium bonds and could be a great story for the future.

Blackjack. yes, that's what its called. Expert in casino games me. You might want to take this level of expertise into account in deciding whether to actually do this.

DM

Yes indeed blackjack has one of the lowest edges to the house if you play perfect strategy, that means knowing exactly what decision to make regarding, drawing another card or not, doubling down and splitting. If you do not play optimum strategy then it is not as good as roulette in terms of returns.

John

[PinkDalek]

... It's where to keep 10K for a couple of years. ...

If you are looking to keep it in cash then the previously mentioned NS&I - Investment Guaranteed Growth Bonds might be good for £3,000.

https://www.nsandi.com/Investment-Guara ... owth-Bonds

2.20% gross/AER Issue 1 Term 3 years Taxable, paid gross managed online invest up to a total of £3,000 per person

We calculate the interest daily and add it to your Bond on each anniversary of investment.

Amending their example:

A £3,000 deposit would be worth £3,202.38 at the end of the 3-year term.
This is an illustration only, so it doesn’t take into account your individual
circumstances. It assumes that you don’t make any withdrawals during the term.

Can I withdraw money?

Yes, before the end of the term you can cash in all or part of your Bond online. We will deduct a penalty equal to 90 days’ interest on the amount you cash in. ...

The balance of £7,000 or so could be put into a 2 year fixed deposit.

Close Brothers presently paying 1.95% https://www.closesavings.co.uk/fixed-term-deposits but this is for a minimum of £10,000. Withdrawals not available. Plenty more options here http://www.thisismoney.co.uk/money/arti ... ounts.html

No doubt you are aware but rates have been rising recently. Also bear in mind your effective rate of Income Tax on the interest (subject to the appropriate savings allowance etc).

[redsturgeon]

Moderator Message:
This thread has been moved here from the Snug as a more appropriate forum. A shadow remains in the Snug

[moorfield]

Alternatively, put it all into a SIPP wrapper for Didds Jr, cheap FTSE100 tracker fund accumulation units, reclaim a little tax.

Didds Jr will thank you mightily for that in 30-40 years time.

[BobbyD]

Santander is 1.5% before fees.

https://www.santander.co.uk/uk/current- ... gI3CvD_BwE

5% at NW on £2500 for a year, 3% at Tesco on 2 x £3000, 2% on 3 x £5000 at BOS. Minimum payment and DD requirements as with (but not the same as Santander, but easily overcome with a standing order in standing order out).

[didds]

Alternatively, put it all into a SIPP wrapper for Didds Jr, cheap FTSE100 tracker fund accumulation units, reclaim a little tax.

Didds Jr will thank you mightily for that in 30-40 years time.

I'd agree but I suspect didds Jnr could do with the dosh at uni in 6/18 months time etc

which is why didds jnr (adult now just) won't be getting the dosh yet cos it will just get frittered away. Didds Jnr can fritter it away when at uni

didds

[moorfield]

didds which is why didds jnr (adult now just) won;t be getting the dosh yet cos it will just6 get frittered away. Didds Jntr can fritter at away when ay uni ;-0

I share your thinking there didds, which incidentally is why I am not putting our hard earned and gifted into Junior ISAs. That's not being tight, it's just mitigating what I like to term "frivolity risk".

Instead of SIPP, would suggest to fill up your Mr+Mrs ISA allowances first, into some fund allocated for Didds Jr's benefit. We're using City of London IT, reinvesting dividends, and the longer term plan is to match the juniors' future loan/fee repayments with dividends/sales cashflows from that (on the understanding that - flunk your degree, and your debts are your own ... )

[nimnarb]

Put it all on AAPL and enjoy the ride.............

[mutantpoodle]

all (as far as I can see) 'investments for cash are rubbish at present

try Premium bonds
can you can get him to sign the app form and YOU keep the bonds??
just dont give him access
so he will not be able to sell them
he can then sell when he needs to...........and it will take a few weeks to get the money so it will (maybe) focus his mind on whether or not he really does want tosell and use the money elsewhere

you never know...a couple of early wins (bound to be small!!) might well encourage him to hang on1

[didds]

I've gone the premium bonds route.

In my name. (so shoot me She doesn;t know the molney even exists. Wife/mother is aware etc)

cheers all for your kind advice

didds

[melonfool]

Santander is 1.5% before fees.

https://www.santander.co.uk/uk/current- ... gI3CvD_BwE

5% at NW on £2500 for a year, 3% at Tesco on 2 x £3000, 2% on 3 x £5000 at BOS. Minimum payment and DD requirements as with (but not the same as Santander, but easily overcome with a standing order in standing order out).

It's £3,000 at NW, as it's £250pm.
Also, First Direct does a 5% one too, £300pm.

And TSB 1.5% on £1,500, have to pay in £500pm, but I transfer it straight back out again anyway.

M&S also have one - 5% on £250pm: https://bank.marksandspencer.com/save-i ... hly-saver/

Not sure what the terms of them all are.

Mel