Best option for investing/saving £10k?

handbag86

Hello all,

As you can see i am a new member here, just recently signed up looking for some help with this queery. I am enquiring for my mother really...

We are looking for the best way to invest 10k. When i say invest i don't think i actually mean invest because that implies risk? I mean she wants to save it for a year gaining as much interest as possible.

TBH, i don't really know the difference between ISAs, Saving accounts, Tessas etc...i have done a bit of searching around this forum and will continue to do so in order to widen my knowledge.

The money is currently in a current account (no pun intended:rotfl:) and gaining 0% interest. The bank have been quite anxious to transfer this money to a savings account with them in which they offered 10k deposit for a year which would gain 5% interest...which they worked out at £400 gain - (4% net).

Basically...we want to make one up front deposit and require no access to the money over this time. My mother is keen on just saving for a year and re-assessing at the end of this time.

So yea...just really looking for some advice as to what should be done with the money? Thanks in advance.

HB86.:money:

Lokolo

Ok firstly:

ISAs are a tax free wrapper for savings and investments. Savings wise (you don't want risk you said), you h ave £3600 per person per tax year. So you can put £3600 now, £3600 in April. This gives you £7200 tax free.

If you have £10 you could do something like this (this is not advice, you do as you please):

1 year fixed ISA: £3600
6/9 month fixed Savings (not ISA): £3600
Savings Fixed for 1 year: £2800.

When the 6/9 month fixed savings has matured you can then put that £3600 into an ISA also. Given you £7200 in ISAs come 6/9 months.

Interest from the 6/9 fixed savings can then be spent or whatever (or saved in instant access).

For best rates: moneysupermarket.com/savings