Interest rate: 2.84% Net p.a annually for £25,000 or more.
Key features:
- Higher interest for fewer withdrawals
- Instant access to money if needed
- Includes special interest rate bonus
- Make 2 withdrawals a year and still retain the highest interest rates.
Natwest.
Account: Diamond Reserve
Interest rate: £100,000-£249,999 2.28% Net p.a
Key features
- Minimum balance £2000
- 30 days notice needed before you make a withdrawal
- Make one withdrawal up to £250 in a any calendar month without having to give notice or loose interest.
- Interest is added monthly and can be transferred to another account or keep it and make interest on interest.
Barclays Bank
Account: 60 day savings account.
Interest: £100,000 or more 3.15% gross p.a 2.52% Net p.a
Key features:
- Minimum investment £1000
- 60 day notice to withdraw money.
- Save regularly with a standing order from a different account which transfers money into this account.
Account: Barclays Saving Bonds.
Interest rate: 9.99% end interest for a full term .Net
3.2% Net p.a –annual interest rate
3.15% Net p.a- quarterly interest
3.14% Net p.a-monthly interest
Key features:
- High rate of return with no risk to your capital.
- Minimum deposit £2000
- Chose from a 1 year, 2 year of 3 year term investment.
- Receive interest annually, monthly, quarterly or the end of term interest option
Account: Barclays Variable rate ISA
Interest rate: 4.25% gross for £10000 or above
Key features
- Minimum investment is £10
- Just a cash mini ISA
- Interest added annually
- Fixed interest rates
Investments with the National Savings and Investments, which is backed by HM Treasury who can promise you that your money is 100% secure. You can open these accounts with your local post office. Here are three accounts:
Account: Fixed Interest savings Certificates.
Interest rate: 5 year fixed interest saving certificate for £10,000
3.05 gross p.a
Key Features:
- Guaranteed returns, tax free.
- Interest rates are fixed for the length of chosen term- 2 year term or 5 year term.
- Invest up to £10,000 in each issue bought.
Account: Fixed rate saving bonds.
Interest rate: 5 year fixed rate term
£50,000 or more 4.14% gross 3.32% Net p.a
Key features:
- Certainty of knowing exactly what your return you will get on your money.
- Choice of growing investment or receiving an income
- Choice of fixed rate terms-1 year, 2year or 3 year fixed rate term.
- Take money out before the end of a term a penalty of 90 days interest will be deducted.
- Interest rates are tiered so more money you invest higher rate of interest.
- When bond matures a letter will be sent advising:
Continuing investment for another term,
Reinvest bond
Or cash in the bond.
Account: Income Bonds.
Interest rate: £25,000 or more 3.80% gross monthly
3.87% AER
Key Features:
- Invest £500 to £1 million.
- Interest is paid to you gross straight into a different account and your capital is 100% safe,
- You are earning an income on your savings.
- 3 month notice to access your money
Income Accounts
These types of accounts give you the interest as a monthly income. The National savings and Investments keep your capital 100% secure and the monthly interest is transferred to another account automatically.
However the Natwest Diamond Reserve account allows the interest to stay in the account as well as the interest to be transferred out to another account. The Income Bond with the National Savings and Investment account has a better return monthly than the Natwest account.
Income Bonds
£40,000 x 3.38%=£1520 annual interest
£1520/12 months =£126.67 monthly interest
Diamond Reserve
£40,000 x 2.28%=£912 annual interest
£912/12 months = £76 monthly interest.
As you can see the above calculations the Income Bonds are far better investment if you want an account that gives you a monthly income.
Above is a table showing accounts which have a fixed term which your investment into and when the investment matures you have the chose to reinvest or take your money out. The Barclays Bond has a high interest rate because it is the total interest you receive after the three years in the account.
This graph above shows the increase of the National Savings and Investment accounts.
I hope all this information will help you decide your chosen investment account for you to invest £100,000.if you have any inquiries please contact me and I will be glad to help.