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Alternative to savings account?

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    Alternative to savings account?

    We had some savings in an Investec High5 account which paid the average interest rate of the top 5 bank and building society savings accounts. This was a good deal because you were always guaranteed a decent interest rate without having to constantly move your money around.

    Maybe it was too good a deal because we've just had 3 months notice that the account is ending.

    The question is where to put the money? Most savings accounts only pay peanuts, even if you tie the money up for several years.

    Premium bonds is one possibility.

    Anyone know of anything else very low risk?

    Thanks in advance.
    Scoots still says that Apr 2020 didn't mark the start of a new stock bull market.

    #2
    Originally posted by DealorNoDeal View Post
    We had some savings in an Investec High5 account which paid the average interest rate of the top 5 bank and building society savings accounts. This was a good deal because you were always guaranteed a decent interest rate without having to constantly move your money around.

    Maybe it was too good a deal because we've just had 3 months notice that the account is ending.

    The question is where to put the money? Most savings accounts only pay peanuts, even if you tie the money up for several years.

    Premium bonds is one possibility.

    Anyone know of anything else very low risk?

    Thanks in advance.
    You can't put company money into premium bonds.
    Virgin Money was OK. Until they slashed the interest rate in the summer. prior to that I was getting £70 a month on £85k deposit. It's now around £25 but better than a slap in the face with NLyUK's wet knickers.
    See You Next Tuesday

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      #3
      Originally posted by Lance View Post

      You can't put company money into premium bonds.
      Virgin Money was OK. Until they slashed the interest rate in the summer. prior to that I was getting £70 a month on £85k deposit. It's now around £25 but better than a slap in the face with NLyUK's wet knickers.
      Sorry, probably should have said this is not company money, it's personal savings.
      Scoots still says that Apr 2020 didn't mark the start of a new stock bull market.

      Comment


        #4
        Better returns and very low risk doesn’t compute, you can’t have both.

        Which one is more important to you and how long are you prepared to tie the money in?
        "I can put any old tat in my sig, put quotes around it and attribute to someone of whom I've heard, to make it sound true."
        - Voltaire/Benjamin Franklin/Anne Frank...

        Comment


          #5
          Originally posted by cojak View Post
          Better returns and very low risk doesn’t compute, you can’t have both.

          Which one is more important to you and how long are you prepared to tie the money in?
          Yes, I know you're right. And this is probably why Investec have ended the High5 savings account; because the returns were too high.

          The most important thing to us is no risk to capital.
          Last edited by DealorNoDeal; 22 March 2021, 08:04.
          Scoots still says that Apr 2020 didn't mark the start of a new stock bull market.

          Comment


            #6
            Originally posted by DealorNoDeal View Post

            Sorry, probably should have said this is not company money, it's personal savings.
            ZOPA ISA?
            after bad debts I get around 3%.
            See You Next Tuesday

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              #7
              Have you tried getting your money from Zopa? I had around around £30k with them. Following some less than favourable news coverage of the P2P sector, I decided to request a sale of all my loans (and took the hit on the sale fee).
              The vast majority of the money appeared relatively quickly although it took 3 loan sale requests to get it. But there was around £500 which didn't. I called and was told that these were bad debtors or those behind with payments. I didn't do the full forensics on it, but in general terms, I'm sure that these had not previously appeared in my bad debtors estimate (or on my calculated interest rate) - meaning the actual return was a decent bit lower than forecast.

              It's over two years later (meaning I've had to declare the income on subsequent tax returns) and I've still got £70 sitting there. It occasionally reduces by a few quid presumably either as the underlying loans are repaid (or sold as a package for pennies on the pound to a collections agency).

              In truth, I'd probably put the whole experience in the "more hassel than it's worth" bucket.

              Comment


                #8
                Originally posted by sludgesurfer View Post
                Have you tried getting your money from Zopa? I had around around £30k with them. Following some less than favourable news coverage of the P2P sector, I decided to request a sale of all my loans (and took the hit on the sale fee).
                The vast majority of the money appeared relatively quickly although it took 3 loan sale requests to get it. But there was around £500 which didn't. I called and was told that these were bad debtors or those behind with payments. I didn't do the full forensics on it, but in general terms, I'm sure that these had not previously appeared in my bad debtors estimate (or on my calculated interest rate) - meaning the actual return was a decent bit lower than forecast.

                It's over two years later (meaning I've had to declare the income on subsequent tax returns) and I've still got £70 sitting there. It occasionally reduces by a few quid presumably either as the underlying loans are repaid (or sold as a package for pennies on the pound to a collections agency).

                In truth, I'd probably put the whole experience in the "more hassel than it's worth" bucket.
                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.
                See You Next Tuesday

                Comment


                  #9
                  I agree in general and in this instance I didn't need the cash but my experience of spending far too much time reading about markets is that there are indications of the next financial scandal brewing long before the doo-doo hits the fan. Woodford, LCF etc... The digging I did on the P2P sector at the time made me concerned enough to sell as I didn't think the risk/reward ratio stacked up in favour of continuing particularly as the rate had recently been cut.

                  My fear appears to be unfounded and given how well Zopa is capitalised, it would likely be one of the last to find itself in trouble.

                  My point was a more general one that until you actually recoup your capital, the expected return is just that.

                  Comment


                    #10
                    Originally posted by DealorNoDeal View Post

                    Sorry, probably should have said this is not company money, it's personal savings.
                    Yeah, maybe bearing in mind they are completely different.
                    'CUK forum personality of 2011 - Winner - Yes really!!!!

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