🔔 'Where do I invest £45,000?'

My husband and I will shortly have about £45,000 to invest.  We know that we can top up our ISA - we`re getting 1.4% with Coventry but have you any other suggestions please?

We`d prefer an account that isn`t entirely online. We are retired, don`t need the money immediately but on the other hand don`t want to tie it up for say, 5 years.  My husband is a basic rate tax payer and I don`t pay tax.  Neither do we need monthly income.

As basic and non taxpayers, a cash ISA is unlikely to be essential, as you will already be earning tax-free interest and as a basic rate taxpayer, your husband can earn up to £1,000 tax free outside a cash ISA, because of his Personal Savings Allowance (PSA). Since the introduction of the PSA, interest on non-ISA accounts is automatically paid gross, rather than taxed at source.

• Download our free factsheet explaining in detail how the Personal Savings Allowance works

Having said this, cash ISAs should never be dismissed out of hand, as your circumstances could change or the PSA could be abandoned in the future, which could leave you paying more tax on your savings than necessary.

But in your case, as the Coventry cash ISA you hold is paying a very competitive rate of 1.40%, this would be a good option for any funds you have that you need easy access to.

In fact, assuming this is an easy access ISA, the current best buy easy access standard account is paying less, at 1.31% gross/AER (online-only) or 1.30% gross/AER (postal/branch/online).

However, as you don’t need immediate access to this £45,000, you could earn a little more.

Access to non online-only accounts is a hot topic at the moment, as many of the best buys are only available to those who are prepared to open and/or manage accounts via the internet.

But, the good news is that there are still a number of competitive options available that can be opened by post, telephone or in branch.

• Non online-only accounts fight back – offering savers more traditional choices

To give you an indication of the interest you could earn, the best non online-only notice account is with PCF Bank. Its 100 Day Notice Issue 5 is paying 1.55% gross/AER which, on a balance of £45,000, would pay gross interest of £697.50 over 12 months (assuming the rate doesn’t change).

If you could tie it up for 12 months, Kent Reliance has a fixed rate bond that can be opened by post or in a branch, as well as online, paying 1.85% - this would achieve £832.50 gross over the 12 month term.

Take a look at our best buy tables to compare the rates on longer term bonds too, if they are of interest.

We always include at least one non online-only account for those who would prefer to manage their savings in a more traditional way – but you can also call us on 0800 011 9705 if you need further assistance.

*We are occasionally paid by some providers if you click through from our Best Buy Tables and open a savings or current account with them. We will never accept a payment that compromises in any way our independent, whole of market approach to providing information on savings products. For clarity we will indicate those companies who remunerate us with an asterisk (*).

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