£15k to save/invest... help!!??

Dry-Roasted

Hi to everyone,

I'm new to this site guys and I'm just after some help please

I have inherited a nice some of money and after treating myself to a holiday and a few treats I will have around £15,000 to save/invest. I currently dont have any debts and I live in a rented flat with my girlfriend. We have disscussed buying a property, and maybe using the 15k as a deposit but I have no idea, if that is anywhere near enough!!??
If not I would probably like to spread the money around a bit, I dont mind taking a couple of risks with some of the money, but I wouldnt want to risk the lot.
At the end of the day I just want to try and make the most of my money like most people, but I dont have a clue where to start with all these various savings accounts and investment schemes. I know its all a bit vague but any bit of advice would be really greatful.
Cheers

Rafter

Dry roasted,

Several questions in there.......

If you ultimate goal is to buy your own place, you need to save up at least 15% deposit and more like 25% to secure a good deal.

Your £15,000 will therefore get you a £100,000 house tops, which depending on where you live might not buy you much.

If you want to try and grow your money, you need to save or invest.

Low risk savings in a bank or building society will generally earn you about the same as inflation after tax. If you can get a good ISA your money should therefore grow in real terms.

If you want to beat that return you need to think about investment in stocks and shares or linked products. Because these are higher risks, the returns are potentially bigger over time, but you could lose in the short term. Generally you shouldn't invest if you might need the money within 5 years.

Personally I would do the following in your situation:

1. Open a cash ISA and put the maximum in there (£3,600)

2. Invest the rest in a best buy 1 year bond for now and then withdraw the money and invest in ISAs next year - when the limit goes up enough.

You will then have all your savings invested tax free and earning the best possible rate if you switch each year to best buy products.

You should then look at opening a regular savings account to start building up a deposit to buy your own house if that is your long term goal.

Good luck

R.

DiggerUK

Dry-Roasted,

Rafter's advice is what I would take in your situation.
25% deposit is what you need to aim for.
Property prices have little prospect of going up any time soon in my view.
Relax, time is in your favour.