What to do with an extra chunk of dough

[big-will 7]

There's always "spend it" and with the very poor interest rates at the moment, that looks like a good choice.

 

But... am I missing something?

 

5 years ago I opened a stepped income thingy back in the UK, started off 5.5% and in the 5th year got a full 8% interest!

That made for a nice chunk of dough.

I wish I had put more in then for sure.

 

Wondering what to do with it now.

 

1% interest does not excite.

Nice shiny new toys excite much more....

 

 

 

Market expectation, according to the Office for Budget Repsonsibility's Budget forecasts, is for the UK Bank Rate to stay on hold for two more years and then start rising in late 2015.

 

That forecast was unchanged, taken from money markets in late February, on the indication taken in December. The OBR's report said: "By the first quarter of 2018, Bank Rate is now expected to be 2.1 per cent, slightly higher than the level expected at the time of our December forecast.

[grungy-gonads 54]

With rates as they are back in the UK, and the exchange rate now, you are probably best sending it over here and enjoying it.

 

I also have a 5 year one that is in it's 4th year, next year at 7% if I remember correctly. Sounds unbelievable now.

[cal 6]

 

[Chriselle 158]

You can never go wrong with hookers and blow.

 

Edit.... forgot to add.... in Las Vegas..

[NoFakie 45]

Buy a nice house and live in it. There's a definite return there!

 

In 2008, the pound was what, 210 to the yen? Forex has been mad these past few years. It makes a gamble of everything.

[pie-eater 207]

I've got a fairly meaty chunk in my HSBC in the UK at the moment. I was going to put it into a fixed interest thingy like I often have the last 10-15 years but the rates are a joke.

I decided to keep it there where it is earning nothing so that I can "pounce" any day when the exchange rate goes back up again.

Normally I'd think I was being exceptionally silly keeping it there but I'm hardly missing out on crappy nothing percents.

It's excite, especially if it goes back up high.

[DumbStick 13]

Buy a nice house and live in it. There's a definite return there!

 

That's just what I decided to do.

And before the consumption tax increases next year too.

[oo 1]

I'll take that chunk of dough off your hands!

 

[Chriselle 158]

Big Will... You said you liked shiny toys.. Here ya go...

 

[Alexander L 80]

How big the chunk? Can make recommendation according to size of wedge.

[big-will 7]

About 50000GBP.

 

Not interested in high or medium risk.

[Chriselle 158]

Classic car(s)..... especially American muscle of the 60's and early 70's. Don't snicker....amazing returns, tax exempt, hands on, hedge against the never ending recession.

[Alexander L 80]

Not likely in Japan.

[Alexander L 80]

A friend of mine collects watches. Buys them, then puts them in a safe for 5 years. Depending on the brand, he has had returns of 30% to 100%.

 

Not my thing. I like wearing them.

[Aggro Crag 1]

Will may I ask, how much was your initial investment in the "stepped income thingy"?

[big-will 7]

Actually the initial chunk was about 100,000, but this is a sort of built up chunk that I have now to play with.

[big-will 7]

With the pound moving up 4 points on the yen in the last few days, I'd get more return if I sent that over now than if I tied the same amount up for 5 years.

That's mad.

I think I'll hold on a bit longer.

[Tubby Beaver 209]

where do you find out about these financial products big will? I have no clue about these things but want to start learning about it all.....just don't really know where to start

[big-will 7]

Pretty simple stuff, Tubby, really. I am generally pretty clueless on this sort of thing too really.

 

I have had a few with the Halifax. 5 year stepped income or something is the name and each year the interest increased. That one that matured was 6%, 6.5%, 7%, 7.5% and 8% gross. Can't touch the money during the 5 years, the interest paid into my normal bank each year. Those rates are of course unthinkable now and unfortunately they closed that off to overseas people like myself so can't do that any more.

 

I have a similar thing with Lloyds with a bit of cash but I have heard they are also not allowing new accounts. Not sure why.

[brit-gob 9]

ii na, 8% on 100 grand is .... er, 8 grand. Ii na.

[muikabochi 208]

8% sounds very nice indeed for a fixed guarantee rate.

 

Wish we could get something even close to that now.

 

I remember a relative telling me that one time he actually got something close to 10%, can't remember the details.

 

What does my money in the local bank get something like 0.005% or something laughable.

[NoFakie 45]

You can get high interest rates in certain currencies. Argentina, South Africa off the top of my head. I think you can get close to 5% offshore in Singapore in Australian dollars. I guess the way to do it would be to have some kind of leveraged bet the other way against such currency falling.

 

Anyway this seems to be the new way of the world. Its hard to see the financial industry offering good rates to savers when they can get all the money they want for basically nothing from the government.

[@tokyo 14]

Do many folk here dabble in shares and the like?

 

Can't say I am keen to devote brain space to thinking about that and/or the risk. Or more accurately, I don't really have enough to be able to risk!