What to do with £1000?

alimcdee

I have £1000 cash to invest, wow!
My options I can think of are,
my Lloyds tsb cash ISA, it only has 400 in it,
or add it to my 10yr Mortgage,
I have about 26000 fixed for five yrs to pay on this,
or I could buy premium bonds, I did have 5000 of these previously, but these recently went towards my flat purchase.
I quite enjoyed occaisionaly winning 50 quid , with the outside chance of a bigger prize each month!
so which one? or any ideas, that may be worth a punt?
I don't have a lot of money at the moment, I know this aint much, but its a lot when its all you got spare!

thanks
Ali

isofa

You are speaking of saving not investing.

If you can get a higher return on savings rates than the mortgage then save.

Personally I'd put it into the mortgage, but that's because I hate debts.

If you want to save, as long as the cash ISA rate is good (if not transfer it), top it up to £3600, if the £400 was used in this tax year, else if the £400 was from a previous tax year, add a whole £3600 or open a new one with £3600.

And or / if you don't need access to the money for 6 to 12 months, lock it away in a fixed term savings account (or "bond").

PBs don't offer a great return, but there is always that chance....

NumbersGuy_2

From a financial point of view it's simple: if your mortgage interest rate is higher than the interest rate on a cash ISA, use the money to pay off some of your mortgage.

However, if you want comfort of some money set aside for a rainy day put it in savings regardless.