Investing Student Loan

rolo-polo1965

Son a uni student living at home so is not using all his student loan as living expences.

He wants to invest it to make the most money on it. He is not working.

Where is the best place for him to put this money?

Lokolo

I tend to fill up my Cash ISAs first but thats personal choice.

Assuming he doesn't work and earn over £6,475 a year he can go for any savings account, fill an R85 form, and get tax free interest anyway.

What year is he in?
What does he want to save for?

rolo-polo1965

This is not my son he is my friends son! So i am asking for her!

He wants to save up and use it as a deposit for a house!

He is not working either!

Lokolo

Ok!

Right, this assumes he won't be buying a house straight away.

He can find a savings account:

http://www.moneysupermarket.com/savings/

Find one from there.

If he goes for an instant access account he should keep an eye on it as rates will go down over time.

He can go for a fixed rate but this means (usually) he cannot deposit anymore times (usually only 1 deposit allowed, there are some which allow multiple deposits).

He can always save up X amount in an instant access, say £5000, then convert it to a fix rate, then start over in the instant access one.

Whilst he is not earning, he can fill in an R85 form and give it to the bank:

http://www.hmrc.gov.uk/forms/R85.pdf

As soon as he starts paying tax he will need to inform the bank that he is now paying tax.