From a share of a recent house sale likely to have to pay £15K capital gains tax next financial year. Until then, it could just sit in bank and do nothing, stick in premium bonds, or anywhere else? Seems pretty poor interest everywhere these days. Any tips? No, can’t spend it on coke/hookers, buy lots of scratch cards or send to a man in Nigeria who can turn it into a million pounds tax free.

Bestinvest ISA in funds to suit your appetite for risk/return. Been a good experience for us so far.

ISA no good as he wants the money back in a year. No smart ideas really as you don’t want to take a risk and lose money and still have the tax bill to pay.

Have you double checked the CGT calculation ?

Not great returns these days, but Santander 123 account?

As Jamba says, If you absolutely have to have £15k in a years time, don’t risk it.
Tesco bank will pay 3% on £3k, but you can open two accounts each. Nationwide, Santander, LLoyds and others offer similar…

5% on £2k nationwide + £100 signup + another £100 for a friend if they recommend you. Double figures all in 🙂 Stick the rest in a 123 at 1.5% and shuffle money between the two so you meet requirements. Can do even better if you break down further.

What nationwide is doing 5%?

Does your bank offer any preferential savings / regular savings accounts ? Most do.

Failing that, premium bonds aren’t a bad option.

What nationwide is doing 5%

The “Flex Regular Saver”, you may have to have their paid current account to get it. That’s £10/month, with travel insurance, phone insurance etc.

Yes CGT accurate, well as of now unless things change again post June. Thanks for tips, can’t risk anything where it might drop. Had a look – seems a lot of the accounts need regular payments into them and/or direct debits out, or you’re an existing customer. Maybe just simpler to split between leaving with existing bank (but best savings account is 0.5%) & some premium bonds, with the remote chance the latter might return something in this period. At least it won’t go down and can retrieve it when needed. Thanks again.

Too short a time frame for equities, IMO.
Peer to Peer lending? Limited risk for a better than inflation return.
Other than that it’s a cash deposit / bank account and accept the paltry return.

Premium Bonds is a good call.

Is there anyway you can soread the CG over two tax years, “sell” half your stake to someone else so realise one part in this tax year and the other next year ?

Peer to Peer

Limited risk for a better than inflation return.

That, IMO, is very dangerous thinking. FYI I am an asset manager soecialising in bank capital and loan assets. How do you think banks described sub-prime – yup “low risk”

http://www.moneysavingexpert.com/savings/premium-bonds-calculator/

Average return of 1%, better than most savings accounts and the bonds can be cashed in quickly.

ISA no good as he wants the money back in a year

You can invest and withdraw from your ISA (rules apply) any time you want so an ISA is as good as anything however cash ISA rates are rubbish. You could invest in a Stocks and Shares ISA and invest in some “safe” funds but as others have said there is a risk and your limited time frame means you may not be able to ride them out. Shuffle between fixed rate accounts as above is probably your best bet of a guaranteed but small return.

London capital offering 3.9% on a fixed 1 year bond about the best easy rate, but there is some risk. Edit: not actually that attractive looking at it, not at all regulated and aimed at higher value investors investing a small percentage. Looking myself but will be avoiding that.

Flex accounts like the nationwide one don’t give 5% on lump savings, it’s effectively 2.5% over the year as you can’t invest it all in one go. Still good though given there is virtually nothing around for savings. I’d probably split it over high paying current accounts and flex savers, making the requirements for a few high paying current accounts can be hard though as you need to pay in income, have direct debits etc.

Limited risk for a better than inflation return.

That, IMO, is very dangerous thinking. FYI I am an asset manager soecialising in bank capital and loan assets. How do you think banks described sub-prime – yup “low risk”

Banker dislikes peer to peer lending shocker 😉

Yes there is risk. But I think most the P2P lenders run a levy fund to offer some protection against defaults?
Anyhows, CBA going into the merits / risks of P2P, it’s up to the originator to “DYOR”

I think the comment is saying P2P is dangerous because the original poster said he wanted as close zero risk as possible. P2P is fine as part of a diversified portfolio (many financial institutions / banks do actually put money into P2P), if you fully understand the risk. IMO Putting money you cannot afford to lose into P2P is not worth the worry when you can net decent returns (based on op’s risk appetite / in comparison to P2P) spreading the money over multiple banks / using their sign up bonus schemes. Make sure you can sleep well over the next year 🙂

personally seeing my returns on premium bonds – thats where id stick it ….

hardly a month goes by where i dont get at least one 25 quid prize ….. had a couple of sizable wins that mean its streets ahead of savings accounts returns.

nae risk either.

@surfer imho a share isa could easily go down 10-20% in a year – we have all the brexit / eurozone uncertainty (I am positive on uk but the risk is there), its just not worth it for the OP

Risk is a subjective assesment but peer to peer lending is the stuff banks think is not worth it (ie too risky/rates not high enough) so small investors are stepping in and lending at those low rates then paying fees to the arranging platform.

That Nationwide deal is a bit sneaky.

The maximum you can pay in is £6000 over 12 months at £500 per month, which will earn you a maximum of £162.50 in interest.

However, if you are not a current account customer, you need to switch to their current account with all the gubbins for £10 per month and use it for 3 months before you can open the savings account. So you will be paying out £150 in order to qualify for an account that will earn you an excess of £12.50.

Thought it was too good to be true.

I thought mainstream banks were the biggest lenders on peer to peer loan sites? That’s why they are going to shite. Ordinary punters can’t compete with banks undercutting them.

gobuchul – I don’t think that applies to the FlexDirect account, you only have to pay in £1k a month and that’s it. So you can earn 5% on £2.5k from the current account, then keep shuffling £500 a month into the savings account

The flexdirect account doesn’t get you the 5% £6000 account though, you have the £10 a month account.

That Nationwide deal is a bit sneaky.

The maximum you can pay in is £6000 over 12 months at £500 per month, which will earn you a maximum of £162.50 in interest.

However, if you are not a current account customer, you need to switch to their current account with all the gubbins for £10 per month and use it for 3 months before you can open the savings account. So you will be paying out £150 in order to qualify for an account that will earn you an excess of £12.50.

Thought it was too good to be true.

Aye its nice to see a bank respecting current customers …..

I have a flex direct account earning 5% on 2500 that i dont have to pay monthly for and also a flexsavers monthly saver.

The flexdirect account doesn’t get you the 5% £6000 account though, you have the £10 a month account.

You don’t need the £10 per month current account. I have a FlexDirect current account (no monthly fee) and a Flex Regular Saver getting the 5%

I promise I don’t work for Nationwide – Just don’t get the catch or see any fees here: http://www.nationwide.co.uk/products/current-accounts/flexdirect/features-and-benefits

Just put in max £2.5k > swap money between this and a 123 every month to meet requirements. Get interest paid each month in both. You will get 5% (4.89% Gross) on this, 1.5% on the remainder in the 123 with Santander. Or split the remaining £12.5k between the Santander 123 and premium bonds / other accounts for potential greater gain.

Just put in max £2.5k > swap money between this and a 123 every month to meet requirements. Get interest paid each month in both. You will get 5% (4.89% Gross) on this, 1.5% on the remainder in the 123 with Santander. Or split the remaining £12.5k between the Santander 123 and premium bonds / other accounts for potential greater gain.

You may be able to have multiple accounts, You, the missus, and joint. Transfer to Tesco bank (allows multiple accounts) the minimum monthly, and transfer back from a different account. You may also need to set up direct debits for each account, which is a pain, but you could pull 4% in total with zero risk.
Or just stick it in premium bonds.

OK. I was wrong. On the info page the £10 account is at the the top and didn’t notice the other 2.

Flex account applied for. I will setting up direct debits to shuffle the point from other accounts.