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10k, Isa, savings account or Premium Bonds?
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Is this sum important to you, any time frame you are saving it for or particular thing?
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No, just want somewhere to put it, preferably with instant access in case of emergency.
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Cash isa then, as long is allows withdrawals.
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>> Cash isa then, as long is allows withdrawals.
If the income tax privileges of an ISA are of value then cash ISA.
But, like cost to change, there's more than one 'moving part'.
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I had you down as more Ladbrokes than Martins Moneysaving RR :-)
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>> I had you down as more Ladbrokes than Martins Moneysaving RR :-)
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Corals, if you don't mind.
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I’ve got both a cash ISA and Bonds. The interest received on a no notice ISA and the average Bond yield (albeit not guaranteed) are likely to be similar in practice but Bonds offer a flutter element if you like that. Both are easy to manage online via transfer of funds to a current account.
If you’re going to transfer amounts in and out just be aware of any ISA penalties and the effect of timing of deposits and withdrawals with Bonds.
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Where you put £10k must depend on the extent of your other savings/investments, and what other pensions you may have - defined benefit, drawdown fund etc.
Just to pick a couple of figures out of the air for illustrative purposes.
If £10k is all you have then cash ISA is low risk - you can't afford to lose it. Fixed term pays better rate but may have penalties for early withdrawal.
If you already have (say) £90k in cash ISAs it could make sense to spread the risk with shares. You could simply chose an index tracker - eg: 100 or 250 share index. Over the long term (5-10 years+) this tends to give a much better return than cash (but there is more risk).
ISA will give tax benefits, and in an emergency can be sold any time.
Last edited by: Terry on Wed 3 Jun 26 at 19:45
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If you are a betting man, why not Premium Bonds? With £10K your chances should be reasonable and you can always withdraw. Ernie gave me £10K last year !
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SpaceX shares would be ideal for a gambler.
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Median return on a £10,000 investment in premium bonds is currently 2.75%. ( (courtesy of MoneySavingExpert)
Since you can get a lot better than that with a cash ISA the ISA is clearly the better investment. Only purchase premium bonds as a gamble.
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I must admit, I do like a gamble.
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I know a couple who have had max premium bonds for many years but don't win a lot - couple of hundred most months at best, I think their best ever single win was £500 once.
In my modest SIPP I did some fund swapping in Feb and one of the funds has gone up 31% since then! Wish I'd put more into it!! :-) (WS Blue Whale Growth I Acc GBP). It will likely go down very quickly too though...
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>> If you are a betting man, why not Premium Bonds? With £10K your chances should
>> be reasonable and you can always withdraw. Ernie gave me £10K last year !
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Martin Lewis analysis:
www.moneysavingexpert.com/savings/premium-bonds/#tips-5
You need to be very lucky to win £10k (almost a once in a lifetime event) - there are 714 prizes of £10k each month. There are £135bn of premium bonds issued. Therefore the average chance of winning a £10k prize in any month is 1 in 189m for each bond held.
Martin Lewis conclusion - premium bonds are for those who like a flutter. or higher rate taxpayers who already exceed the £500 limit on tax free interest income.
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My brother won a £10,000 prize on the premium bonds.
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>> My brother won a £10,000 prize on the premium bonds.
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The stepson of a former colleague won 13 million in the lottery back in it's early days...a month after he had split with the boy's mother. We only found out about it after he featured in a Sunday tabloid whining about how they'd only left him with his tea cup and his clothes after all he'd done for the boy, etc etc.
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Download Trading 212 app on your phone.
Make an account - record selfie video etc.
Create a stocks and shares ISA.
Move your money into it.
Create an investment pie and invest your money into it.
My suggestion is not to worry about which shares to invest in but just pick one - easiest bet is the Vanguard FTSE All-world (Acc) VWRP LSE. You don't need more than this one, you can but this just keeps it simple. It's an ETF of all the top world markets. Performance so far this year is about 30%.
Of course it can go down as well as up. During the Iran war it dropped massively but now is well over this.
If you are worried about access, the important thing to note is that this is a flexible ISA. The key word is "flexible" as not all are ISAs equal in this respect.
This means you can deposit up to £20K tax free on gains in any year, and crucially if you withdraw you can now reinvest back up to the 20K. Most ISAs don't allow this. If you withdraw, you have lost your allowance. You could in theory operate it as a high interest bank account.
Where the government has got themselves into a mess with their 12K rule on Cash ISAs is that you can opt into interest payments at around 3.8% on money in the stocks and shares isa that IS NOT yet invested into shares — effectively making it operate as a cash ISA — a loophole if you like and one that HMRC is now looking to close. How they will dot this beats me as it is legitimate to pull money out of investments and reassign them later on. It is all part of investing.
Life used to be straightforward when both limits were 20K, but hey, we've been here before, like I say, everything they have done has been a disaster because they don't think past the original purpose on anything, and people are dumb enough to not think past that and see the problem either so we keep voting incompetent people in.
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T212 UK, part of Trading 212 Group Ltd., whose trading platform was developed by T212BG. I would have cold feet investing using a company originating in Bulgaria.
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Back in the 2010s when I last worked it was for one of the high st banks significant portions of their back room activity wasn't carried out in the UK, and quite a bit not even by employees of the bank but contracted out to others.
I opened a T212 account for a short term decent return on a cash ISA. I think I wouldn't have done had it not been covered by the govt guarantees. In fact this from AI may help:
Cash ISA
A cash ISA is usually protected the same way as an ordinary savings account. If your bank or building society fails, the UK deposit protection scheme normally covers eligible cash deposits up to £120,000 per person, per institution.
Stocks and Shares ISA
A stocks and shares ISA is different. The cash held in the account may be protected, but the investments themselves are not “guaranteed” against market falls. If the platform or firm fails, your assets are usually still ring-fenced in custody, but that is not the same as a guaranteed payout for investment losses.
What the protection does
The protection is mainly there if the provider fails, not if:
the market drops,
your fund performs badly,
or you simply lose money on an investment choice.
Last edited by: smokie on Thu 4 Jun 26 at 13:09
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Thanks for all the advice, I've decided on a cash ISA with Moneybox, 4.75%,
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>> Thanks for all the advice, I've decided on a cash ISA with Moneybox, 4.75%,
Currently yields 4.3%/year with a monthly payout, and potential for capital growth (or not).
10 year growth averages 10%pa.
Not financial advice!
www.ajbell.co.uk/market-research/FUND:B0117D3
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>> www.ajbell.co.uk/market-research/FUND:B0117D3
Not a deposit though; your capital and the income provided can go down as well as Up.
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>>Not a deposit though; your capital and the income provided can go down as well as Up.
Cash deposits 'capital' always go down. It's called inflation.
You have to hope the interest is greater than that ;-)
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Like all investment stuff I treat T212 more like a playground. Hold the main ISAs with a platform from an IFA, hold some in high interest accounts and play with the rest in T212.
As smokie says, if the platform collapses you are protected by gov up to £120K.
Also didn't Reliant say he liked a risk? The FTSE world index is risky as it goes up and down, but overall it runs at around 15pc. Even during covid you are looking at 9pc. It's less risky than shoving it all in SpaceX / Tesla which is what Elon has done!
And if you really want to play, hold some in bitcoin in Coinbase. It is soooo volatile it will drive yo auto an early grave if you spend your time watching it.
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Maybe it was an over-reaction, but the whole Wirecard business looks more and more like a Russian GRU controlled enterprise. The question is which is the next one?
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Small Investment - sooty123
