Investing for University return

RedLichtie_2

Hello,

I am seriously considering a return to university to study a one-year course starting in September. I am hoping to save and invest enough over the next 6 months to see me through my course.

At the moment, I have 2 years worth of money in an RBS instant access ISA... and it looks that out of the £7200 I have saved I have only accrued £9! Is this correct?!

To generate better returns (specifically over the next 6 months) what type of investment would be best to look at? Surely the £9 return is absolutely pathetic! I have a pension fund that is invested at a few high-risk managed funds (I'm 26 yo) - would these types of fund be suitable for quick returns?

Many thanks!

Lokolo

High risk high reward, but this is for long-term. Short-term you should stick with savings. Higher risk funds are very volatile so you can give it a go and sell when you are happy, but this is not guaranteed. You could put your money in and lose 50% over the period from now until education course.

IMO, you're not a stockbroker, stick to savings.

You can transfer your ISAs to a better paying one.

opinions4u

RedLichtie wrote: »

I am seriously considering a return to university to study a one-year course starting in September. I am hoping to save and invest enough over the next 6 months to see me through my course.

Good luck!

At the moment, I have 2 years worth of money in an RBS instant access ISA... and it looks that out of the £7200 I have saved I have only accrued £9! Is this correct?!

Possibly. The lesson to learn is to know exactly what rate you are getting on your savings and also what the best paying accounts elsewhere are paying. If you're on top of this you will always know when to move your cash to a competitor.

To generate better returns (specifically over the next 6 months) what type of investment would be best to look at? Surely the £9 return is absolutely pathetic! I have a pension fund that is invested at a few high-risk managed funds (I'm 26 yo) - would these types of fund be suitable for quick returns?

A high risk strategy that could also see you lose large chunks of your capital.

If you were looking 10 years ahead, then yes. But if you want to turn £7,209 in to £5,209 within 6 months, the funds suggestion should help you achieve this!

As you're looking 6 months ahead I'd stick to savings accounts. Use www.moneyfacts.co.uk to identify the most appropriate accounts for:

- easy access (e.g. The AA at 3.15%)
- regular savings (e.g. Barclays at 4.25%, with maturity of funds next January)
- cash ISA (e.g. IF at 2.5%, and there are probably better ones)

Good luck!