Best way to invest £50k?

[Kristoph]

This is for someone else, not me!

I was looking for some advice on how to invest £50k for 1 year - it doesn't need to be accessed at all until the year is up.

Needs to be VERY risk free. It's a deposit for a house!

Possible choice at the moment is an eBond with Nationwide, 6.70% guaranteed rate for 1 year.

Any other ideas?

Thanks,

Kris.

 

[Brian Stuart]

That sounds reasonable. Only up to £35k is guaranteed safe though but Nationwide should be solid enough..

 

[Energize]

ICICI 1 year bond 7.2%.

I use this website to compare accounts.

 

[Bunka]

ICICI 1 year bond 7.2%.

I use this website to compare accounts.

Decent interest rate but personally I would be pretty sceptical about putting £50k into an Indian online bank.

 

[MaX_PoWah]

Its regulated by the fsa, should be fine shouldnt it ?

 

[Kristoph]

For a 0.5% (£250) difference between that and Nationwide - I know which I'd rather put my money in.

 

[Guv]

That sounds reasonable. Only up to £35k is guaranteed safe though but Nationwide should be solid enough..

£50,000 is guaranteed now

Link

 

[Metalface Mark]

Theres not much better than sticking in one of the options suggested, my old man recently cashed in his pension and ended up with about 6.8% which is pretty poor.

 

[arc_of_time_]

put it all on black

 

[Tefal]

put it all on black

This will be the most exciting time of your life. Then after that either one of the happiest or most depressing

 

[meghatronic]

http://www.postoffice.co.uk/portal/...ENZQUHRAYUQ2K?catId=19300232&mediaId=19300235 ?

7.05%

 

[Sankari]

Best way to invest £50k?

Buy Wales?

 

[disfunktion]

Decent interest rate but personally I would be pretty sceptical about putting £50k into an Indian online bank.

It has branches in the UK. Read up on the company - its hardly some tiny little indian bank.

 

[CoreRipOffDuo]

Buy Wales?

What would he do with the other £49,950?

 

[HangTime]

£50,000 is guaranteed now

Link

IIRC currently only £35k is guarenteed, the limit hasn't actually be raised to £50k yet although it's been announced.

Bear in mind that the best paying minicash ISAs will beat fixed rate bonds due to being tax free, so they'll want to be making sure they've maxed out their £3.6k limit first.

 

[Kristoph]

IIRC currently only £35k is guarenteed, the limit hasn't actually be raised to £50k yet although it's been announced.

Bear in mind that the best paying minicash ISAs will beat fixed rate bonds due to being tax free, so they'll want to be making sure they've maxed out their £3.6k limit first.

Yeah, just discussed that with my parents. Me and my brother, plus my mum and dad could all open a cash ISA, as we're all with Nationwide with FlexAccounts.

Thanks for the advice everyone, seems Nationwide should suffice!

Just checked the ISA's + fixed rate bonds vs. just fixed rate bonds...

£50,000 @ 6.7% for 1 year = £3375 gross / £2,700 net interest
______________________________________________________________

£35600 @ 6.7% for 1 year = £2375 gross / £1,900 net interest

4 x £3,600 @ 6.15% for 1 year = 4 x £221.4 = £885 interest

= £2785.6 net interest

£85 extra by using 4 cash ISA's with Nationwide. I'll see if any other banks / building societies provide a better interest rate on ISA's.

 

[iamTakeo]

Hang on, there is a 'credit crunch', I wouldnt trust any firm that isnt backed by the UK Treasury, therefore I recommend looking at the options in NS&I.

 

[GreenMint]

What would he do with the other £49,950?

Therapy for the sheep.

 

[Tunney]

Nationwide's rates are plummeting. I opened an e-Bond two weeks ago at 7%. Since then their rates have dropped to 6.8% and then 6.7%.

 

[Kristoph]

Nationwide's rates are plummeting. I opened an e-Bond two weeks ago at 7%. Since then their rates have dropped to 6.8% and then 6.7%.

So your rate can potentially drop after you've invested? Or are you just looking at it from my point of view?