Just received £15k windfall

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rorylando45 wrote: »

Wow, thanks for all the replies!

I am in my second year of study, due to graduate July 2011, so I've still got a year and a half. I do work as a night manager at a nearby hotel but only sporadically so I don't think Apr-Apr I earn over my personal allowance.

But I see the sense in putting some money into an ISA now, as it means when I do start earning above the threshold, that I will already have some tax-free savings banked away. Besides, the difference in interest between the top ISA and the top Short Term Fixed Rate savings account isn't much.

So I think I'll invest £3,600 in an ISA, then the remainder in a Post Office 1 year Growth Bond. Or I might save £1000 or something in my current account just in case I need it for something urgent. The only thing I'm slightly concerned about is that I've read that the PO Growth Bond isn't covered by the UK Financial Safety scheme as it is backed by the Bank of Ireland...this shouldn't be an issue though, surely?

I would put £3,600 into a 1 year fixed ISA asap.

Then put the remainder into an instant access savings account paying monthly interest until April, when the new ISAs are out.

Then put £5,100 into another 1 year fixed rate ISA

And keep the rest in the top instant access.

Make sure you register the account tax free with an R85 form.

atypical

rorylando45 wrote: »

I do work as a night manager at a nearby hotel but only sporadically so I don't think Apr-Apr I earn over my personal allowance.

You should check to make sure you definitely aren't earning over your personal allowance (£6,475 for 09/10). You're also probably paying basic rate tax on your earnings which you should claim back from your local tax office if you're earning less than the personal allowance.

rorylando45 wrote: »

So I think I'll invest £3,600 in an ISA, then the remainder in a Post Office 1 year Growth Bond...The only thing I'm slightly concerned about is that I've read that the PO Growth Bond isn't covered by the UK Financial Safety scheme as it is backed by the Bank of Ireland...this shouldn't be an issue though, surely?

You can make it a non-issue by opening this fixed rate deposit instead at 4% for slightly over a year. It's backed by the UK FSCS scheme.