If you had £30000 to invest...

00ec25

what's a UT?

Baldur

00ec25 wrote: »

what's a UT?

Unit Trust

mrposhman

pbw wrote: »

£30k savings with a 50k mortgage

3.6k would go into an ISA straightaway @3.61% (Barclays)

26k in a 5 year icici paying 4.4% (3.52% net) getting £76 monthly interest into my current account.

£400 in yorkshire building society web saver @2.10% (1.68% net)

this is of course assuming the morgage is less than 3.52%. if more than 3.52%, put the 26k into the mortgage...

At this current time and looking at world financial markets I see absolutely no logic in locking up any savings for such a period of time as 5 years.

Your compound rate for 5 years works out to be about 18.8% which if invested in a ftse tracker (not that i would recommend one, this is just an illustration) would require the ftse to rise to only 5302 points within that timeframe.

I would personally spread it around a bit if you are happy with some risk. Some should go into cash savings accounts but don't lock the cash away for too long just in case of the risk (however low) of hyperinflation.

I would lock some into a commodities tracker, definately containing oil. No doubt, at some time in the future oil will rise and will rise steeply and therefore can only be good across a longer period of time.

If you are into shares in any way then potentially put some here though it may be better to invest in a fund if you want to be more hands off.