Alternative to savings account?

[HoofHearted]

I've just put a wodge into a Virgin Money Savings Account. As we might need it in the next 12 months I couldn't go for any fixed term deals. The VM one is 0.5% but that goes down to 0.35% towards the end of April. Not likely to get any champagne corks popping but (marginally) better than nowt

[cojak]

don't sell your loans. Bad idea.
Just let the income drip out.
Similar with any form of non-cash investment though. Stocks and shares still need to be sold. If you need to withdraw the cash at any time, then 1% is very good rate. Better off drawing down equity in your house if you need cash than selling investments.

I've researched S&S ISAs and know where and how I'm going to invest my money but this is the bit I still don't understand. You put money into S&S, but how the hell do you get it out?

I've had a ropey S&S ISA for 15 years and it's just about broken even, and if I do anything with it I'll lose even more money.

Stocks and shares just seems like 'jam tomorrow' to me.

[sludgesurfer]

I've just put a wodge into a Virgin Money Savings Account. As we might need it in the next 12 months I couldn't go for any fixed term deals. The VM one is 0.5% but that goes down to 0.35% towards the end of April. Not likely to get any champagne corks popping but (marginally) better than nowt

Frustrating, but as you say, better than nowt. I have a general rule that if the annual gain in interest is greater than £100, then I'll change. I recently swapped an easy access account from Marcus to Coventry, only for Coventry to drop from 0.96% to 0.55% the next month.

[sludgesurfer]

I've researched S&S ISAs and know where and how I'm going to invest my money but this is the bit I still don't understand. You put money into S&S, but how the hell do you get it out?

I've had a ropey S&S ISA for 15 years and it's just about broken even, and if I do anything with it I'll lose even more money.

Stocks and shares just seems like 'jam tomorrow' to me.

Jeez. Very ropey. Before inflation? Over a 15 year period, if you're invested in a collective investment i.e. a fund, or an ETF, or an investment trust, it would have been harder to have lost money than gained. If it's in individual stocks, then that's a different matter.

Stocks and shares are almost by definition, jam tomorrow.

I'm of the firm belief that for most financial advisors, when a client comes to them with an average risk appetite with some money they don't need for at least 5 years, they would be discharging their fiduciary duty best by writing the following on a post-it note then showing them the door...

• Vanguard.co.uk
• lifestrategy funds
• auto invest
• keep your password safe
• look again in 20 years

Of course, there's not much money in this approach for advisors.

I just wish someone had written that to me 20 years ago, or I just wish I'd found Morgan Housel:

https://www.collaborativefund.com/bl...show-on-earth/

Regarding getting your money out - you just sell the underlying holdings through the providers website then either keep as cash within the ISA wrapper should you wish to invest it in something else, or take it out completely (and forgo the tax advantages)

[cojak]

And bizarrely, that's exactly what I've done (and for 5 years as well).

I figured out that I will have learned how to get it out by 2026...

[LondonManc]

Premium bonds.

[DealorNoDeal]

Premium bonds.

Yep, that's what we're thinking. At least there's the chance of winning something, which makes it a bit more appealing than just getting 0.5% interest.

Will probably buy a bit of gold too just in case post-covid everything turns to shyte.

[jamesbrown]

Will probably buy a bit of gold too just in case post-covid everything turns to shyte.

Because there's no risk to your capital when purchasing gold?

Well, based on that definition, there's quite a few alternatives to a savings account... scootie can run through them for you.

[Lance]

Because there's no risk to your capital when purchasing gold?

Well, based on that definition, there's quite a few alternatives to a savings account... scootie can run through them for you.

no VAT or CGT on gold if you get the right coins.

[DealorNoDeal]

Because there's no risk to your capital when purchasing gold?

Well, based on that definition, there's quite a few alternatives to a savings account... scootie can run through them for you.

I did say "a bit". Probably no more than 5% of the capital.