Parking £600K for a few months

Club Lloyds current account does 4% on £5000, if you think it is worth the hassle.
Similar terms to the Santander account (max one sole & one joint; 2DD per month)

Inequitable when you consider I have just been told by my bank that they want 4% over base to renew my loan!

Depends on your attitude to risk but you are a Landlord and already taking some risk with your capital and you do have a big pile of surplus cash there.

My view is if Sainsbury bank or whoever are paying you 0.8% and inflation is currently 1.6% your pile of cash is actually going to get smaller in real terms by several thousand pound in 6 months. You are going to pay 40% tax on this measly income as well for the privilege of having your capital eroded.

So how about putting it or some of it in the stock market. I think the FTSE 100 is yielding 3.5% and seeing as you will be an owner in several companies most of which increase their prices you should be protected from inflation.

You’ll get a fair income, potential for capital appreciation set against risk of capital depreciation. Sounds very similar to property investment but without phone calls in the middle of the night because someone is locked out. Who knows you might never buy that property in 6 months time. 😉

Just an idea – I’m no expert so please do your own research.

I have done this with spare cash and provided you stick to the FTSE 100, spread it round and aren’t really unlucky you can have some fun and follows some trends.

Hargreaves Lansdown is a good platform, do your maximum each year as an ISA, if you don’t need it you can leave it in the ISA shell and its tax free. You can put as much as you want in a vantage share account, and in theory, your money isn’t subject to the FSCS limits as your holdings should be held separately from their assets. In theory at least.

Reply to the comment left by “simon Bruce” at “01/09/2014 – 13:50“:

Over the long term the FTSE 100 is a very sound place to invest.

Over the short term it is far too risky particularly with increasing unrest in Ukraine.

Boring I know, but in David’s circumstances stick to the best instant acess accounts making maximum use of ISAs and for a bit of a non risk gamble try Premium Bonds.

‘Over the long term the FTSE 100 is a very sound place to invest. Over the short term it is far too risky particularly with increasing unrest in Ukraine’.

It’s interesting that the FTSE is up 0.8% today so if you’d have invested the 600k for just one day (bought yesterday and withdrawn it today) you’d have made 0.8% or just shy of £5000. Interestingly this is almost the same as leaving it on deposit for a whole year in the account discussed in one of the early posts. In which time it would have devalued by twice as much as it earnt.

I’m pretty sure the markets all read the news and have factored any risks into the current prices.

It sounded to me like the OPs big pile of money is fairly surplus and therefore he may not be restricted by quite the same caution that other investors are.

But I do agree that the risk / reward of the stock market is higher than that of a deposit account. I think anyone investing needs to beat inflation or they are just throwing money away.

Do let us know what you decide to do with it. I wish I had your problems 😉