Student - What to do with my money?

Chris4

Hey, I'm a student just finishing my first year at university. I have about £5000 in my bank accounts: half in a low-interest savings account and half in my student account, after NatWest phoned me and said I had "too much money in one account".

The balance regularly goes up and down, same for all students. I get income from student loans, grants, bursaries and scholarship, but then outcome to tuition fees, accommodation and living costs; but it's always at a good amount because I'm a good MoneySavingExpert and don't waste it.

So my question is, what's the best thing to do with it?

When I finish university in 3 years I'm going to be in some considerable amounts of debt (although far less than that of those who waste it). Should I put a chunk of it into the highest-interest account I can find or something else?

As far as I'm aware, pretty much all savings accounts rates are really low, just like the one NatWest offered me. However just seen this MoneySavingExpert article - which brings me to think, I could lock some of it away meaning I'd get a higher interest, but I don't know if that's the best option...

I just feel I have all this money which I could be doing something with for the next 3 years while at university to gain some interest or something. I've recently opened a £100 premium bonds just to give it a try, I could invest more but probably not worth it, looking at the MoneySavingExpert article.

I look forward to your suggestions...

Chris

stator

I would say put it in an instant access account. I think this is the best one at the moment:
http://www.ingdirect.co.uk/savings/variable_rate/default.asp
After the rate drops in a year switch the account to someone else.

As a student I wouldn't lock your money away anywhere, I'd want to keep it readily available at all times.

Chris4

Yeah I saw that ING Direct savings account a while back and was considering doing it for a year until the rate drops. Thanks, I'll definitely consider it.

Lokolo

You won't really ever need £5k in a year.

Lock some of it up, keep some in instant access. (Say 50/50)

That way, you don't have to keep moving all the money around when rates drop.

Loopgames

This may sound mad but...

Start your own business! At uni you have the wealth of resources for you for free! Wish I had done this myself currently am having difficulty maintaining my business with 2 young kids.

Only a suggestion of course but after testing the market for 3 years you'll have a job by the time you graduate plus maybe win a few awards - very few enter them so chances are in your favour if you have a good idea (big catch!)

Chris4

Lokolo wrote: »

You won't really ever need £5k in a year.

Lock some of it up, keep some in instant access. (Say 50/50)

That way, you don't have to keep moving all the money around when rates drop.

Yeah worth looking into locking some of it up maybe.

Loopgames wrote: »

This may sound mad but...

Start your own business! At uni you have the wealth of resources for you for free! Wish I had done this myself currently am having difficulty maintaining my business with 2 young kids.

Only a suggestion of course but after testing the market for 3 years you'll have a job by the time you graduate plus maybe win a few awards - very few enter them so chances are in your favour if you have a good idea (big catch!)

Yeah you're right. I've seen my university advertise ££ awards for business ideas. I do Computer Science. If only I could think of a good idea!

Loopgames

Chris4 wrote: »

Yeah you're right. I've seen my university advertise ££ awards for business ideas. I do Computer Science. If only I could think of a good idea!

What do you enjoy doing?

I publish educational card games for schools and find it really hard to find talented people who understand the paper based game industry so have to go the states to find it. The creative industry in the UK is growing but still lagging in some respects.

However here is an example of a talented graduate who turned his skills into a successful business.

www.rjdm.com

The owner graduated from the Arts Institute of Bournemouth if I remember correctly and they do 3D animation. Amazing stuff.
He developed his business slowly but has grown so much since I last met him back in 2005!

Chris4

Loopgames wrote: »

What do you enjoy doing?

Like I said I study Computer Science which covers a broad area of computing, so specifically what I want to do after university I haven't yet decided. Possibly web design or my own computer shop, neither of which are unique or possible candidates for awards.

Lokolo

Chris4 wrote: »

Like I said I study Computer Science which covers a broad area of computing, so specifically what I want to do after university I haven't yet decided. Possibly web design or my own computer shop, neither of which are unique or possible candidates for awards.

XNA + C# = Microsoft XNA Tournament.

Fun times.

http://www.rich-carey.com/ollylokolo/Game.rar

Download and install that, just something I did in my second year (that is the incomplete version though! )

You can use your xbox controller with it. (although not sure if I had done that in the version above)

Although you might not be able to have your own company with the games, you can sell games on XNA Site for monies.

http://imaginecup.com/default.aspx

Although its late, you can prepare for this next year.

Chris4

Lokolo wrote: »

XNA + C# = Microsoft XNA Tournament

Haha thanks for the idea but I know neither of these languages. I learnt C briefly this academic year, next year is Java. I think that tournament is more for MSc Computer Games Programming students.

Sceptic001

A student with money. Wow. Well done :j

If I were you I would keep quiet about it, otherwise the government may use it as an excuse to raise your tuition fees.

Presumably you are a non-taxpayer, but even so it may be worth considering NS&I index-linked savings certificates which, if held for a year, rise in line with the Retail Prices Index (plus a bit extra), thus protecting your savings against the ravages of inflation.