What to do with 10K

wilto

My new wife and I have just been given £10k to be used on a deposit on a house, by my grandparents although we don't want to buy for a few years. So therefore until we do buy a house the money is not available, I know i hate strings attached but that's grandparents for you!

So 10k to invest/save.

Would the best bet be to stick it in 2 ISAs and put the rest into our HSBC flex plus saver account?

LucyTheDwarf

HSBC rates are appalling :P

Find the best cash ISAs out there, and put the rest in a high interest account (Kaupthing Edge is best at present), until next April, when you can transfer the rest into your ISAs (after checking they are still competitive of course, and switching provider if necessary).

wilto

Bad are they :S, oh well the convenience of easy transfer on internet banking has to be paid for somehow.

I thought you could only ever have one ISA to your name? As you can see I've never saved before properly!!!

So stick 7200 in 2 ISAs between me and my wife, 2800 in the Kaputhing edge, and then in April stick the 2800+interest into another ISA.

What happens to the intersest on our 2 maxed out ISAs?Does it just stay in there and we then have to withdraw it every April?

downs523

nah the interest stays in there and does not count towards ur yearly allowance

chinbergs

Sounds good wilto.

You can usually opt to have the interest paid into the ISA (and then the interest will earn interest) or you can have it paid into another account (current account). I use Icesave for my ISAs as they have a good rate and they pay the interest in monthly. I personally couldn't bear to have the interest paid annually (even for a better rate) as I like to see that my money is growing.

And it's not one ISA ever, but one ISA per tax year (refreshes every 6 April).