£12,000 to invest

misstoms

I have recently received £12,000 from a family member and am looking to invest it for about a year.

I already have £10,000 in an ISA with Nationwide earning 2.75% interest, with nothing of that invested in this tax year.

Could any experts on here give me any advice?

The best accounts I have found are only offering me 3%, is this the best I can expect?

Would stocks gain me anything more?

I don't mind taking a little bit of risk, but can not afford to loose much as I am looking to buy a house next year.

Emma

amcluesent

>Would stocks gain me anything more?<

Maybe and maybe lose a lot more. IMHO, you're only viable options are a fixed rate 1 year deal (maybe with some in ISA wrapper) and for bit of flutter, put £500 into premium bonds. Even if you don't win, at least you'll get your capital back, all be it devalued by inflation

lisyloo

The best accounts I have found are only offering me 3%, is this the best I can expect?

Yes, to be honest.
Base rate is 0.5%, so this isn't bad relative to that.

as I am looking to buy a house next year.

Stocks & shares are out then as you need 5 years plus.

If you can wait 12 months then you could consider NSI index linked certificates which pay RPI plus 1% (or 0.85% after first year).
RPI is currently 5.3% but future returns are unknown.

Otherwise go for best ISA/savings account.
Do you have a spouse as together you'll have £10,200 allowance.

You cannot really "invest" for a year without taking risks. Invetsments are for longer term. You need savings.

D1zzy

misstoms wrote: »

I have recently received £12,000 from a family member and am looking to invest it for about a year.

I already have £10,000 in an ISA with Nationwide earning 2.75% interest, with nothing of that invested in this tax year.

Could any experts on here give me any advice?

The best accounts I have found are only offering me 3%, is this the best I can expect?

Would stocks gain me anything more?

I don't mind taking a little bit of risk, but can not afford to loose much as I am looking to buy a house next year.

Emma

You could get a bit more with 2 x lloyds Vantage (6K in each) - will pay 4% gross 3.2 net.