What to do with £10k?

[d000hg]

If risk averse, find a bank account paying more than 3.5%

I have a Clydesdale one (up to £3000 at 4%), and a Nationwide one (up to £2500 at 5%) where some of my savings sit that beats that mortgage rate.

These may not be available any more of course (Clydesdale opened last month, Nationwide about 10 months ago).

I can't really be arsed to do this, you end up with dozens of accounts all with different special rate periods, requirements on what you pay in each month, having to have direct debits set up, etc. You can get a lot more that way but it becomes something you have to work at and my working time is spent doing work

[Gittins Gal]

Is this 10k divi going to take you into the higher rate tax band?

If not, I'd love to know how you operate to still have a spare 10k at the end of the year.

I'm actually thinking of taking out a similar divi at the end of the year as I'm planning on making a few investments of my own. I'll be paying 40% on it mind you. I'd been paying into a pension for the last 10 years but I get a stronger and stronger suspicion that it will do no more than provide me with a bit of froth for my retirement.

[northernladuk]

Why are people still taking div's this late in the year? Don't many of you divi the full wack first month in and then put it somewhere to earn a percent or two more than the business account?

[jmo21]

I can't really be arsed to do this, you end up with dozens of accounts all with different special rate periods, requirements on what you pay in each month, having to have direct debits set up, etc. You can get a lot more that way but it becomes something you have to work at and my working time is spent doing work

yeah, fair enough

I quite enjoy squeezing the last few quid out of my savings so don't mind the hassle

Why are people still taking div's this late in the year? Don't many of you divi the full wack first month in and then put it somewhere to earn a percent or two more than the business account?

I generally spread mine through the year.

[psychocandy]

Not always. It's always good to have a pot of cash or some liquidity at hand for a rainy day.

WSS. Depends whether:-

1. You can foresee ever needing this money back.
2. If you do, can you withdraw it from mortgage or is it gone if its paid.

[northernladuk]

I generally spread mine through the year.

Just out of interest... why?

[d000hg]

Just out of interest... why?

Obvious reasons would be to take dividends as the money becomes available, or to keep the company account at some threshold balance. I don't like to see my company account with only a few thousand in, irrational as that is!

Oh and also, many banks won't let you take more than £10k out in one go without getting this set up, so taking it in £10k chunks as invoices come in might be 'easiest'.

[original PM]

Coke and hookers!

[DodgyAgent]

I've £10k sitting in my account after taking a dividend. I have not yet maxed out my and the wife's ISAs for the current tax year so that would normally be where I'd put it. On the other hand I have a mortgage (taken out May 2013) charging around 3.5% which allows me to overpay more than £10k each year fee-free.

I'll have more dividends before April but which makes most sense - get the mortgage payments reduced now with immediate effect seems best to me?

Psst! wanna buy a recruitment agency?

[MarillionFan]

Deposit for another BTL. You know it makes sense.