any advice please

stebarker

hi

i am 18 years old and have just been given money that my nan and grandad have been saving since 1999 i have over £4,000 and would like to put it in a savings trust or ISA

I think they were child bonds im not to sure, but i would like to invest it instead of spending it like most people my age would;)

any advice welcome

i was looking at the halifax ISA as I am already with them with my current account

thanks for reading
steve

dawyldthing

I know Halifax have 2.80%, you just have to apply online. So on £4k, it would get you £112 interest a year

Loughton_Monkey

Key thing is what you (might) want the money for, and when.

There are 'investments' that might do well for you over a period of 10 or more years.... but I am ruling that out. The value could easily drop, and if you ever wanted the money, it could come at a time when they are lower rather than higher.

If you are a tax payer, then an ISA is probably what you want. No tax on the interest. The Interest rates are very poor at the moment. Up to 3% if you are lucky, but inflation is more than that. Tuck it away (in an ISA) for 3 or 5 years, then you can earn a lot more. But you run the risk that intereset rates will rise, and you will find that you can't draw it out and re-invest it somewhere better.

Nothing wrong with Halifax. But don't do all your saving/banking with them just because you are already with them. Good to keep a long-standing relationship of some kind with a bank. But it's also good to build up a 'reputation' with others as well. Keep your options open.

Blackdog

Halifax ISA which could be as high as 3% for you as you have a current account with them is the way to go. Don't forget to review it in a year as there may well be better rates available then. If you do want to change to a different ISA in the future remember not to close your existing one first but open the new one and that provider will arrange the transfer. This is important otherwise you will loose the ISA (tax free) status.
Good luck with your saving.

stebarker

I am saving it for a deposit on a house or something sentimental as its from my grandparents so i dont want to be taking it out any time soon.

thanks for all your help guys/girls

ste

Loughton_Monkey

stebarker wrote: »

I am saving it for a deposit on a house or something sentimental as its from my grandparents so i dont want to be taking it out any time soon.

thanks for all your help guys/girls

ste

Might be worth looking at Santander's 5% interest on saving for deposit. Drip feed the money into that?

lambourne

I would recommend Juian Hodge bank ISA you can download the forms, they are very competitive although might not be the absolute highest rate there are no catches and they are very straightforward and in my experience very very efficient , they offer options for 1, 2 or 3 years ISAs.