£3500 to invest- advise needed please

spl2nh

Dear all

I currently have £3500 saved and I save at £100pcm. I would like to move it to an account which pays interest monthly but am getting no useful advise when I call and enquire.

I would love to know how much interest a month I would initially earn (say on 4.75% AER - not that I know what that means!). Also, I have heard that its taxable but I am a student so would I be exempt or could I claim it back.

Advice would be most appreciated.

Thanks.

dunstonh

invest or save? You say invest in the title but then mention interest which suggests savings accounts.


Its important we know which it is so you dont get answers which are unsuitable.

ReportInvestor

Why do you want monthly interest?

If you are saving £100pm you presumably don't need to withdraw the interest on £3,500 to live off?

Going for monthly interest accounts just limits the number of top paying accounts available to you.

But the Lansbanki IceSave account would pay you 5.08% divided by12 per month or 5.2% if you got your interest annually. You don't get more by taking the monthly interest option.

spl2nh

Thanks for your speedy replies. I thought invest was the same as saving's but I guess I was wrong. In which case I mean saving's. I fancied a monthly interest rate as I have never earned anything on my cash before and I quite fancied having something to watch as it grows, especially with my saving's being of a not so significant amount.

Hope this clarifies things.

Thanks.

hot_chick_2

If you have no ISA you can invest £3000 before April tax free and another £3000 after 6 April 2007.:beer:

Why not open a regular saver to put in your £100 per month.

Alliance and Leicester 12%:j
Lloyds 8%
Halifax 7%

etc,etc,etc