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  • FIRST POST
    • Pjama
    • By Pjama 16th Jul 17, 2:43 PM
    • 2Posts
    • 0Thanks
    Pjama
    Young investor looking for advice
    • #1
    • 16th Jul 17, 2:43 PM
    Young investor looking for advice 16th Jul 17 at 2:43 PM
    Hi there!

    I'm looking for a bit of advice on how to best invest some money I have been saving. Apologies in advance if this is too lengthy or not the right place to post this!
    Basically I'm a working 25 year old who is saving around £600/month of which £200/month goes into my Help To Buy ISA, leaving £400/month which I want to put into investing. Currently I have:
    Two current accounts with £3000 in each at an interest rate of 3%
    One current account with £2500 at an interest rate of 5%
    One regular savings account with £1,500 at an interest rate of 5%
    One Cash ISA with £9,000 at an interest rate of 0.75%

    I initially wanted instant access to my money (was saving towards getting a house) and hence deposited savings in current accounts but I will definitely not be purchasing a house in the next 2 years. As such I am happy for all the money in my current accounts/savings/ISAs to be locked away for the next 2 years if the return is better. I have been doing some research with regards to investing in P2P lending and was wondering if it's more advisable to invest the money on this platform or wait till I can get an Innovative ISA's for Ratesetter or Zopa? Alternatively can anyone more experienced advise me of an any alternative ways to get the best return for the money I have?
    In terms of goals, ideally at the end of the 2 years I'd like to have access to about 20K and don't mind leaving the rest in investments.

    Thank you in advance for taking the time to read this and for any words of wisdom you pass on.

    Pjama
Page 1
    • xylophone
    • By xylophone 16th Jul 17, 3:38 PM
    • 22,015 Posts
    • 12,697 Thanks
    xylophone
    • #2
    • 16th Jul 17, 3:38 PM
    • #2
    • 16th Jul 17, 3:38 PM
    One Cash ISA with £9,000 at an interest rate of 0.75%
    http://www.thisismoney.co.uk/money/saving/article-1583864/Best-savings-rates-Isas-Cash-Isa-accounts-fixed-rate-Isas.html

    Or you might consider opening a 123 current account with Santander which would open the 5% regular saver to you.

    http://www.santander.co.uk/uk/current-accounts/123-current-account?cid=ppc-123currentaccounts-google-dr-search-currentaccounts-Apr17&gclid=CObm18SDjtUCFVUz0wodxrwCYQ

    http://www.santander.co.uk/uk/savings/regular-esaver
    • Pjama
    • By Pjama 16th Jul 17, 4:33 PM
    • 2 Posts
    • 0 Thanks
    Pjama
    • #3
    • 16th Jul 17, 4:33 PM
    • #3
    • 16th Jul 17, 4:33 PM
    Thanks for your reply! The interest rates on Cash ISAs seem pretty dire so I didn't think it was the best place to leave my savings. I had considered the Santander 123 current account along with the regular saver, but I'm not sure the return I get after 2 years would be better than just taking all the money out of my accounts and instead investing in something using Peer-to-peer lending like ratesetter albeit the risks involved? Correct me if I'm wrong though please. P2P lending is a new concept which I've not used before but have researched about and it seems I would get a bigger return by investing in this. I guess I'm just looking for advice from experienced investors on whether this is a wise move or not?
    • Eco Miser
    • By Eco Miser 16th Jul 17, 10:12 PM
    • 2,892 Posts
    • 2,681 Thanks
    Eco Miser
    • #4
    • 16th Jul 17, 10:12 PM
    • #4
    • 16th Jul 17, 10:12 PM
    Do not take money out of the current accounts or regular saver. Keep feeding £500 into the regular saver. (it's your last chance, any new one will only take £250 pm). These accounts are capital guaranteed, and at reasonable rates. They form a buffer so if you lose your job, or have other unexpected expense, you don't need to cash in your investments at a possibly inopportune time.
    Use the £9000 to take a chance on riskier investments, if you want. If you can avoid needing it for at least 5 years, you could consider stock market investments (through funds, not individual shares), in which case transfer to ISA to an S&S platform.
    Eco Miser
    Saving money for well over half a century
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