Savings advice / novice investor

[deadhac]

Hello, im just looking for some guidance to be pointed in the right direction

Im a student (graduating this year) i have a job lined up for september but have no solid income before then.

I have £13,000 savings earning about 2% and £2000 in my current account.

I want to make this money work as much as i can so am wondering where i should put it etc?

I am also thinking about investing some as rates are low, and the market looks to have bottomed out but am unsure when to invest. I am looking for a low risk investment

thanks for all your help

[dunstonh]

I am also thinking about investing some as rates are low


Investing means putting money into risk based areas. Typically that doesnt involve interest rates.

the market looks to have bottomed out but am unsure when to invest. I am looking for a low risk investment


The stockmarket isnt low risk. A typical FTSE tracker is medium/high risk. However, dipping your toes into the water for a very small amount isnt going to increase the risk too much if the rest of the money is saved in cash. If you are thinking equities then you need to be aware that you are effectively putting your money aside for 5-15 years (you dont have to as modern invesmtents are open ended but you need to be prepared to do so just in case).

[deadhac]

i think my wording of the post wasnt the best. I understand the stock market has risk, things go up and things go down. When i say rates are low. I mean the interest rate of the savings account that i hold and other similar accounts.

What i am unsure over is what would be a sensible amount to invest in shares and how much i should put in a cash isa for example.

Also, what areas should i invest into, im not looking for someone to tell me as that is naive and foolish. But would i be best to stick to the top ftse100 companies that have been less effected than smaller companies by the recent climate. (to clarift i mean BATS, AAL, TSCO, BG., i havnt researched these companies fully yet they are just examples) I assume it would be better to stay away from banks as they are like a yo-yo at the moment.

You say an investment would typically be long term 5+ years. I dont think that appeals to me as i would never know when i would need to liquidise my holdings quickly. so perhapsi should stick to something like a barclays regular savings account alonside ulster banks online saver