Investing £12,000 in Britain
August 4, 2013 7:32 PM Subscribe
Advice please for hands-off medium to long term investment of about £12,000 in Britain, with complication.
The complication is that the investor, a UK citizen living abroad, is not and will not be in Britain for several years, so the investment will have be set up by mail and/or online.
The money is currently in a personal saving account, gaining minimal interest (will check the actual rate tomorrow; it's probably 0.5%) at Royal Bank of Scotland.
Royal BS offer a FTSE100 tracker fund, with a 1% annual fee. Is that reasonable? I'm guessing it may be simpler to move the money within the RBS, rather than opening an account somewhere new. RBS also offer an ISA version of the fund. Would that be better, or not so suitable for savings unrelated to regular income (i.e. there won't be more money put into the investment.)
The complication is that the investor, a UK citizen living abroad, is not and will not be in Britain for several years, so the investment will have be set up by mail and/or online.
The money is currently in a personal saving account, gaining minimal interest (will check the actual rate tomorrow; it's probably 0.5%) at Royal Bank of Scotland.
Royal BS offer a FTSE100 tracker fund, with a 1% annual fee. Is that reasonable? I'm guessing it may be simpler to move the money within the RBS, rather than opening an account somewhere new. RBS also offer an ISA version of the fund. Would that be better, or not so suitable for savings unrelated to regular income (i.e. there won't be more money put into the investment.)
At 12k, I would simply place into an index fund. Anyone looking to have an actively managed account would need a significantly higher deposit.
posted by NYC-BB at 10:02 PM on August 4, 2013
posted by NYC-BB at 10:02 PM on August 4, 2013
Consider Vanguard UK. They have very low fees and are easy to monitor online. I've been happy with them for my US based investing.
posted by demiurge at 11:15 PM on August 4, 2013 [1 favorite]
posted by demiurge at 11:15 PM on August 4, 2013 [1 favorite]
Hargreaves Lansdown is a UK company who will handle your investments (even small ones like this); they have index funds available that don't charge 1 per cent (wtf?) and they are easy to work with remotely.
posted by emilyw at 12:06 AM on August 5, 2013
posted by emilyw at 12:06 AM on August 5, 2013
I'm not an expert on these matters, but if you're not putting anything else in an ISA I can't see why you wouldn't take the tax-free advantage it provides with this.
posted by Segundus at 1:15 AM on August 5, 2013 [1 favorite]
posted by Segundus at 1:15 AM on August 5, 2013 [1 favorite]
Seconding Hargreaves Lansdown. They have a few options for stock ISAs, and are very reasonably priced and easy to work with remotely.
posted by goo at 5:20 AM on August 5, 2013
posted by goo at 5:20 AM on August 5, 2013
You must be permanently resident in the UK to invest in an ISA.
posted by gorcha at 7:15 AM on August 5, 2013
posted by gorcha at 7:15 AM on August 5, 2013
Response by poster: Thanks everyone for suggestions but unfortunately none are possible to set up without being bodily present in the UK, which can't be done just now.
posted by anadem at 12:31 PM on September 4, 2013
posted by anadem at 12:31 PM on September 4, 2013
Why not RateSetter/Zopa/etc.?
posted by turkeyphant at 11:20 AM on November 12, 2013
posted by turkeyphant at 11:20 AM on November 12, 2013
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posted by jsturgill at 8:07 PM on August 4, 2013