Ask Sindie: First-class way to fund a degree

I find myself in a rather unusual situation, having gone back to study full-time at university at the age of 47.

Money net
savings
search

Q. I find myself in a rather unusual situation, having gone back to study full-time at university at the age of 47. As I have lived abroad for the past three years, I don't qualify for a student loan, so I am funding myself. In June I will be receiving £30,000 from a maturing life insurance policy and would like to arrange to have some money instantly available. However, I want to keep a certain amount earning as much interest as possible.

I estimate that I will need about £10,000 a year for accommodation, fees and expenses. What do you suggest I do?
JM, by email

A. As the £30,000 is funding your university costs, your investments should be risk-free. This being the case, you should put the money into a deposit account while aiming to earn as much interest as possible.

To fund your immediate costs, place some money on instant access. You are only estimating your first-year costs, so make sure you have a little extra in case you have underestimated.

If you have access to the internet, I would suggest putting £9,000 into the Egg Internet Savings Account, which is currently paying a variable rate of 5 per cent per annum gross, including a 0.5 per cent bonus for the first six months. Put a further £3,000 into the Northern Rock mini cash ISA, which is paying 4.8 per cent per annum and requires 30 days' notice. If you do not have internet access, the Chelsea Building Society is offering an instant access rate of 4 per cent.

Having accounted for year one, you need to ensure adequate funding for years two and three. It would appear that you are a non-taxpayer, in which case you should keep to building society accounts and mini cash ISAs, which pay interest gross. However, if you do pay income tax, you should consider guaranteed income bonds.

In this case, I would suggest putting £7,000 into the Scarborough Building Society Fixed Rate Bond, which pays 5.1 per cent gross over one year. At the end of the year the proceeds should be put in an instant access account, with £3,000 going into a mini cash ISA to help fund year two.

The remaining £5,000 could be put into the Abbey National Choices Bond, which offers a return of 5.05 per cent over two years. At the end of that period, move the proceeds into an instant access account, putting £3,000 into a mini cash ISA to fund year three.

Q. Could you please give me a contact for the Pinnacle bond discussed in the Ask Sindie column on 19 May.
BC, by email

A. The bond is available from Pinnacle Insurance, Pinnacle House, A1 Barnet Way, Borehamwood, Herts WD6 2XX (020 8207 9000 or infor@pinnacle.co.uk).

Sindie was assisted by Patrick Connolly, associate director at independent financial adviser Chartwell Investment Management. Contact: 01225 446556.

Write to Sindie at The Independent on Sunday Business section, Independent House, 191 Marsh Wall, London E14 9RS or sindie@independent.co.uk. Queries will be answered by an IFA. We cannot return documents, give personal replies or guarantee to answer letters. We accept no legal responsibility for advice given.

Independent Partners; request a free guide on NISAs from Hargreaves Lansdown

Life and Style
Customers can get their caffeine fix on the move
food + drink
Life and Style
techCould new invention save millions in healthcare bills?
Sport
David Moyes gets soaked
sport Moyes becomes latest manager to take part in the ALS challenge
News
peopleEnglishman managed the quintessential Hollywood restaurant Chasen's
PROMOTED VIDEO
Voices
Mosul dam was retaken with the help of the US
voicesRobert Fisk: Barack Obama is following the jihadists’ script
Arts and Entertainment
Flat out: Michael Flatley will return to the stage in his show Lord Of The Dance
danceMichael Flatley hits West End for last time alongside Team GB World champion Alice Upcott
News
Members and supporters of the lesbian, gay, bisexual, transgender (LGBT) community walk with a rainbow flag during a rally in July
i100
Life and Style
Black Ivory Coffee is made using beans plucked from elephants' waste after ingested by the animals
food + drinkFirm says it has created the "rarest" coffee in the world
Arts and Entertainment
Loaded weapon: drugs have surprise side effects for Scarlett Johansson in Luc Besson’s ‘Lucy’
filmReview: Lucy, Luc Besson's complex thriller
Arts and Entertainment
Jamie T plays live in 2007 before going on hiatus from 2010
arts + entsSinger-songwriter will perform on the Festival Republic Stage
Life and Style
food + drinkThese simple recipes will have you refreshed within minutes
News
Jermain Defoe got loads of custard
i100
News
peoplePamela Anderson rejects ice bucket challenge because of ALS experiments on animals
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Data Centre Engineer - Linux, Redhat, Solaris, SAN, Puppet

    £55000 per annum: Harrington Starr: A financial software vendor at the forefro...

    .NET Developer

    £600 per day: Harrington Starr: .NET Developer C#, WPF,BLL, MSMQ, SQL, GIT, SQ...

    Data Centre Engineer - Linux / Redhat / Solaris / Puppet / SAN

    £65000 per annum: Harrington Starr: A financial software vendor at the forefro...

    Business Analyst

    £250 - £350 per day: Orgtel: Business Analyst, Bristol, Banking, Business Obje...

    Day In a Page

    Air strikes? Talk of God? Obama is following the jihadists’ script

    Air strikes? Talk of God? Obama is following the jihadists’ script

    The President came the nearest he has come yet to rivalling George W Bush’s gormless reaction to 9/11 , says Robert Fisk
    Ebola outbreak: Billy Graham’s son declares righteous war on the virus

    Billy Graham’s son declares righteous war on Ebola

    A Christian charity’s efforts to save missionaries trapped in Africa by the crisis have been justifiably praised. But doubts remain about its evangelical motives
    Jeremy Clarkson 'does not see a problem' with his racist language on Top Gear, says BBC

    Not even Jeremy Clarkson is bigger than the BBC, says TV boss

    Corporation’s head of television confirms ‘Top Gear’ host was warned about racist language
    Nick Clegg the movie: Channel 4 to air Coalition drama showing Lib Dem leader's rise

    Nick Clegg the movie

    Channel 4 to air Coalition drama showing Lib Dem leader's rise
    Philip Larkin: Misogynist, racist, miserable? Or caring, playful man who lived for others?

    Philip Larkin: What will survive of him?

    Larkin's reputation has taken a knocking. But a new book by James Booth argues that the poet was affectionate, witty, entertaining and kind, as hitherto unseen letters, sketches and 'selfies' reveal
    Madame Tussauds has shown off its Beyoncé waxwork in Regent's Park - but why is the tourist attraction still pulling in the crowds?

    Waxing lyrical

    Madame Tussauds has shown off its Beyoncé waxwork in Regent's Park - but why is the tourist attraction still pulling in the crowds?
    Texas forensic astronomer finally pinpoints the exact birth of impressionism

    Revealed (to the minute)

    The precise time when impressionism was born
    From slow-roasted to sugar-cured: how to make the most of the British tomato season

    Make the most of British tomatoes

    The British crop is at its tastiest and most abundant. Sudi Pigott shares her favourite recipes
    10 best men's skincare products

    Face it: 10 best men's skincare products

    Oscar Quine cleanses, tones and moisturises to find skin-savers blokes will be proud to display on the bathroom shelf
    Malky Mackay allegations: Malky Mackay, Iain Moody and another grim day for English football

    Mackay, Moody and another grim day for English football

    The latest shocking claims do nothing to dispel the image that some in the game on these shores exist in a time warp, laments Sam Wallace
    La Liga analysis: Will Barcelona's hopes go out of the window?

    Will Barcelona's hopes go out of the window?

    Pete Jenson starts his preview of the Spanish season, which begins on Saturday, by explaining how Fifa’s transfer ban will affect the Catalans
    Middle East crisis: We know all too much about the cruelty of Isis – but all too little about who they are

    We know all too much about the cruelty of Isis – but all too little about who they are

    Now Obama has seen the next US reporter to be threatened with beheading, will he blink, asks Robert Fisk
    Neanderthals lived alongside humans for centuries, latest study shows

    Final resting place of our Neanderthal neighbours revealed

    Bones dated to 40,000 years ago show species may have died out in Belgium species co-existed
    Scottish independence: The new Scots who hold fate of the UK in their hands

    The new Scots who hold fate of the UK in their hands

    Scotland’s immigrants are as passionate about the future of their adopted nation as anyone else
    Britain's ugliest buildings: Which monstrosities should be nominated for the Dead Prize?

    Blight club: Britain's ugliest buildings

    Following the architect Cameron Sinclair's introduction of the Dead Prize, an award for ugly buildings, John Rentoul reflects on some of the biggest blots on the UK landscape