� which Investment???

[admarlow]

I have around �40-45K to invest but im not sure into what. I don't want to consider any thing risky and want access to my money at about 2 months notice. How much per month will the investment bring me?

[AlanS107]

For absolute risk free investment, buy government gilts which will pay approx. 4.8%. Although slightly more risky, a good alternative is to invest in an online internet savings account. You can get approx. 5% - 5.5%. Part of your money is at risk if the bank goes broke, but it is not very likely. You will not be able to get more than about 5.5% without taking some extra risk which you should avoid unless you are investing for the long term.

Investing in online internet accounts gives you full control of you money and instant access. There are many accounts such as Alliance & Leicester at 5.35% (max 25,000), Yorkshire Building Society, Nationwide, ING all paying a good rate.

To reduce the risk, split your money into more than one savings account as the compensation scheme if a bank goes broke will only be 90% of up to 32K (I think - check the FSA site), so you should not invest more than about 30K in each bank.

For more info, go to www.fool.co.uk and select | Discussion boards | Managing your finances | Current and savings accounts |



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[AlanS107]

You could get approx �200 per month for 45k.

[AlanS107]

The �200 per month is taxable if you are a basic rate or higher rate tax payer. So for a basic rate tax payer, you can clear �160 per month.