Got £3k to Invest/Save

James_Bond

Hi there,

I'm releatively young, and just wondered what I should do with £3k?


I am willing to risk investments, but at the same time, are there any decent bank accounts that you would suggest.

As you can see, I am a bit of a novicew when it comes to the investing/saving money business, so any help would be appreciated!

Thanks again. :money:

Sillychuckie

Do you want to save for the future? Or just get as much interest out of the 3k as possible? Do you see yourself being able to save more money in the future? There are a few choices you could make.

1. Mini Cash ISA
An ISA is a pretty safe bet. The interest rates aren't bad (approx 5%) and you don't pay tax on the interest (although, this may not make a difference if you are young and not a tax payer anyway).
The main advantage of the ISA would be if you were planning on saving for a longer term. By building your ISA portfolio, even if you aren't making the most of the 'tax free' status now, you certainly will be in future (when you become a tax payer). As it is a 'use it or lose it' benefit, its a good idea to make the most of it whilst you can.

2. Regular saver.
If you just want to get the most interest out of your money in the short term, there are some great regular saver deals out there. My advice would be the 10% A&L regular saver, although it has 1 main catch.
You need to open a current account with it, and fund it with £500 each month. This means you'll need a £500 float which you must use each month to put into the A&L current account (and then withdraw it again until the next month). This is what I do, and they are OK with it. My balance is £0 for all but 1 day each month, when it goes up to £500 briefly.
Atleast however, I am earning 10% on a regular investment of £250.
You could keep the rest of the money in any form of savings account and each month, transfer £250 to the regular one.

Another good regular saver you might want to look into is Lloyds TSB as it offers slightly more flexibility, and no requirement to fund the associated current account each month (although offers a lower rate of 8%).

Other tips:

If you aren't a tax payer and do not go down the ISA route, be sure to register for GROSS interest.
If you go with A&L, check out Quidco for a cashback of £50.

If you go with A&L, I can refer you (entirely optional) and we both get another £50. Please PM me for details.
However, also understand that the A&L advice is a good one. The fact I am offering you a referral is in no way influencing my advice.

If you dont mind the regular saver, I'd suggest A&L.
As well as the huge 10% excellent rate, you'll be getting an easy £100 just for joining. If however you want to save long term then I'd advise you use the ISA allowance.

For those that say the A&L £50 referal is now down to only £25, I have a voucher you can use.

James_Bond

Thanks, that's great advice.

I'll weigh up the options, and see what to do within the next few days.


Thanks again! :money: