Martin Lewis says dump premium bonds.

[Obelix 11]

.........correct!........hindsight,if only!........but a little trustworthy bird tells me ,sell shares and buy physical gold!

 

Shares pay dividends. I've never seen a gold bar or krugerrand do that though....

[hyper 10]

.........just imagine if you had bought £1000 of Apple shares a decade ago..

 

Aye, Forest Gump bought some shares in that fruit company and did well

 

---------- Post added 02-06-2016 at 10:47 ----------

 

Why would you need instant access to over 100k?

the cycnic in me still remembers northern rock where people wanted their savings back on demand. I'd want that control and flexibility. Still, I don't have 100k, so an academic point

[foxy lady 10]

Why would you need instant access to over 100k? Unless you are planning to buy a house or a Ferrari. Good managed funds are instant access low fee and can get you way more than 0.25%. Basically the only people that keep 100k in cash accounts are those that would spend that kind of money in a weekend. I wouldn't feel sorry for them.

 

Not necessarily. Instant access to £100K allows you to buy the things you want now rather than investments for your retirement. So it could be buying into a business, the village pub, a holiday home, a horse or two, art, antiques, classic car, Gibson Les Paul or converting a barn. All of which will give you pleasure and probably far higher return than a 5 year bond. But which probably need the cash available at short notice.

However I wouldn't stick that sort of cash in one account anyhow. The FSA guarantee is £75K. As the difference in return % between £50K and £100K is likely to be peanuts, it would be wise to split the money you want to spend between several accounts all of which can give you cask immediately

[Solomon1 10]

I’ve always been a fan of premium bonds

 

HUGE waste o money

 

Used to have grand's worth o'er many years

 

Did I win owt?

 

Did I eck!

[Cyclone 10]

Not necessarily. Instant access to £100K allows you to buy the things you want now rather than investments for your retirement. So it could be buying into a business, the village pub, a holiday home, a horse or two, art, antiques, classic car, Gibson Les Paul or converting a barn. All of which will give you pleasure and probably far higher return than a 5 year bond. But which probably need the cash available at short notice.

However I wouldn't stick that sort of cash in one account anyhow. The FSA guarantee is £75K. As the difference in return % between £50K and £100K is likely to be peanuts, it would be wise to split the money you want to spend between several accounts all of which can give you cask immediately

 

Does anyone buy these things on a whim? Within days, rather than months?

Apart from the ultra rich, for whom keeping 100k available isn't an issue.

[foxy lady 10]

Does anyone buy these things on a whim? Within days, rather than months?

Apart from the ultra rich, for whom keeping 100k available isn't an issue.

 

Do people really have £100,000 in high interest bank accounts if they have a mortgage and credit card debt? I may be in a minority but I always thought the idea of having money was to enjoy spending it. So to answer your question. Yes people do buy these things on a whim. It's no use finding a 1970 Mercedes 280SL and saying to the vendor "Do you mind hanging onto it for 3 months until the bank let me have my cash"

But hey. We are all different. Some sit on their savings for 60 years so they can have horses to pull their funeral carriage.

[hyper 10]

.... Some sit on their savings for 60 years so they can have horses to pull their funeral carriage.

and ironically, they probably don't - all the estranged relatives turn up to stake their claims and the funeral is arranged as a modest affair

[Cyclone 10]

Do people really have £100,000 in high interest bank accounts if they have a mortgage and credit card debt? I may be in a minority but I always thought the idea of having money was to enjoy spending it. So to answer your question. Yes people do buy these things on a whim. It's no use finding a 1970 Mercedes 280SL and saying to the vendor "Do you mind hanging onto it for 3 months until the bank let me have my cash"

But hey. We are all different. Some sit on their savings for 60 years so they can have horses to pull their funeral carriage.

 

I wouldn't have thought anyone is sitting on the cash whilst also having a mortgage, not unless they have something specific in mind for the cash.

 

Personally, enjoying my money doesn't include spending it frivolously with little thought.

 

Perhaps if I had a million in investments, then I might spend 100k without too much thought, but if I only have 200k in investments, then I wouldn't be keeping 100k in cash in case I one day decide to blow it on a car or a horse.

 

Although if it did happen, i spotted a must have vehicle, I expect that the vendor probably would "hold onto it" if you put down a 1/5th deposit, or worst case, you could use short term finance whilst you unwound whatever was invested.

 

I guess what I'm suggesting ultimately is that cash would normally be a small % holding for anyone who actually has significant amounts. And 100k would be considered significant to most people. If you've ONLY got 100k, then you won't hold it all in cash will you.

[foxy lady 10]

I wouldn't have thought anyone is sitting on the cash whilst also having a mortgage, not unless they have something specific in mind for the cash.

 

Personally, enjoying my money doesn't include spending it frivolously with little thought.

 

Perhaps if I had a million in investments, then I might spend 100k without too much thought, but if I only have 200k in investments, then I wouldn't be keeping 100k in cash in case I one day decide to blow it on a car or a horse.

 

Although if it did happen, i spotted a must have vehicle, I expect that the vendor probably would "hold onto it" if you put down a 1/5th deposit, or worst case, you could use short term finance whilst you unwound whatever was invested.

 

I guess what I'm suggesting ultimately is that cash would normally be a small % holding for anyone who actually has significant amounts. And 100k would be considered significant to most people. If you've ONLY got 100k, then you won't hold it all in cash will you.

 

 

I think you nearly answered the question. If you go to property auctions, classic car auctions, or fine art auctions they like you to pay for what you buy. If you need to take out a short term loan to buy something like that you probably couldn't afford it in the first place. Any costs of the short term loan would outweigh any imagined advantage of sticking the cash in an interest bearing account.

Such items are hardly frivolous purchases. A good 280SL bought 10 years ago for £20K would be worth around £80K today. I doubt you can get that in a high interest account. And you get to drive it on sunny days.

[mossdog 10]

I think you nearly answered the question. If you go to property auctions, classic car auctions, or fine art auctions they like you to pay for what you buy. If you need to take out a short term loan to buy something like that you probably couldn't afford it in the first place. Any costs of the short term loan would outweigh any imagined advantage of sticking the cash in an interest bearing account.

Such items are hardly frivolous purchases. A good 280SL bought 10 years ago for £20K would be worth around £80K today. I doubt you can get that in a high interest account. And you get to drive it on sunny days.

.......it's obvious people on here are in varying financial circumstances Foxy so there is not a one size fits all answer...........me? I'm more in the 280SL/Gibson SG camp so a £100k float is handy. It only fetches peanuts in any bank account anyway,better off under the bed really especially if rates turn negative as in some countries!

[vwkittie 10]

What bank is paying 5% On "little money"? investment. Please post details

 

It's TSB

 

You get 5% on your current account up to £2000, which supposedly isn't a fixed term rate.

 

You also get 5% cashback on the first £100 of contactless purchases each month, for the first year.

 

If you have the current account you can get a 1 year saver account which pays 5% and you can save up to £250 a month. You can access the money when you like but can't replace money withdrawn.

 

So yes, a good option if you just want to save a little each month. I'm saving for a big holiday next year

[foxy lady 10]

.......it's obvious people on here are in varying financial circumstances Foxy so there is not a one size fits all answer...........me? I'm more in the 280SL/Gibson SG camp so a £100k float is handy. It only fetches peanuts in any bank account anyway,better off under the bed really especially if rates turn negative as in some countries!

 

It also helps you jump on a fishing boat heading for Annagassan if the wheels come off Wagon UK. Are you still playing these days?

Edited June 2, 2016 by foxy lady