Just inherited some money ... what to do with it?

chsaver92

Hi!

My nan died just over 10 years ago and left me and my sister £10,000. My parents put the money in different accounts and after a 5 year bond 2 years ago put it in premium bonds.
Now im 18 I've decided that i wanted control over it myself and seen as the money (which was in my dads name with mine and my sisters money in) haden't won anything for over 8 months it was time to move it.
Now ive already put £2,516 in an isa which i had already set up in my name to save for uni (with my parents putting in money) but ive decided not to go at the moment so have given them that amount back. I cant put any more in this tax year beacuase we had already reached the maximum (5100) for this year but my mum needed money to buy a cars so took it out! not too useful
That leaves me with £12,159.
My question is What to do with it?
at the moment its sitting in an ING direct savings account but im not sure wether to put some into an isa or some sort of bond. Any suggestions would be appreicated

thanks chsaver92

mike88

For heavens sake don't take notice of posts suggesting that you might make 20%-40% in a year by investing in gold, silver emerging markets and technology. These are volatile investments. You could just as easily lose 30-50% in a year as make a quick buck.

If you need access to the money at any time within the next few years stick it in the best savings account you can find. Shares are a great investment for the long term but for short term savings they can and often are likely to fall because s**s law dictates that when you need the money the share price will be low.

Voyager2002

chsaver92 wrote: »

Hi!

My nan died just over 10 years ago and left me and my sister £10,000. My parents put the money in different accounts and after a 5 year bond 2 years ago put it in premium bonds.
Now im 18 I've decided that i wanted control over it myself and seen as the money (which was in my dads name with mine and my sisters money in) haden't won anything for over 8 months it was time to move it.
Now ive already put £2,516 in an isa which i had already set up in my name to save for uni (with my parents putting in money) but ive decided not to go at the moment so have given them that amount back. I cant put any more in this tax year beacuase we had already reached the maximum (5100) for this year but my mum needed money to buy a cars so took it out! not too useful
That leaves me with £12,159.
My question is What to do with it?
at the moment its sitting in an ING direct savings account but im not sure wether to put some into an isa or some sort of bond. Any suggestions would be appreicated

thanks chsaver92

Decide whether you want a secure savings account (where if you are lucky interest will just about be more than inflation) or whether you are willing to accept risk for the chance of a higher return.

If you want security, read what this site says about savings accounts, and obviously remember that you will be able to open a new ISA or put money into your current ISA early in April. And of course check out the index-linked National Savings certificates.

If you are willing to invest with a degree of risk, accept that your money is likely to be locked up for something like seven years. You might look at 'index-tracker' mutual funds, or there are all kinds of possibilities to explore. Personally I would avoid gold and silver, but if you believe that prices are going to increase, well, up to you.

Stubod

..If you have "burnt" your ISA's for this year I would always go with the "safe" option of the Lloyds Vantage account that pays 4%...lots of posts on this.....you are limited to £7k, but you can have 2 or 3 of them, and you need to transfer £1k into them each month, (which you can then take bacvk out again to "invest" the following month).

padington

Stubod wrote: »

..If you have "burnt" your ISA's for this year I would always go with the "safe" option of the Lloyds Vantage account that pays 4%...lots of posts on this.....you are limited to £7k, but you can have 2 or 3 of them, and you need to transfer £1k into them each month, (which you can then take bacvk out again to "invest" the following month).

4%? that's a guaranteed loss on real terms. My bakewell tart went up 10% today. It might go up again by the end of the year. If saving means guaranteed loosing then go for your life. Personaly couldn't imagine worse advice in today's climate, 4% interest is like giving Someone your pie knowing it's going to have bites taken out with no hope of it getting any bigger. ISA is a good idea but not a 4% savings account unless you know the guaranteed loss to your investment is coming your way.

theoretica

You need to think what you will do with this money. Will you blow it on a car and round the world cruise next year, use it for a deposit on a house in 5 years, put it in really long term investment to add to your pension, take out £1000 a year to increase your income... You need to know what your aims are before you can come up with a sensible plan as the advice will be different if you are saving for 1 year or 10.

While you are working out what your aims and plan is, the suggestion about a couple of Lloyds Vantage accounts is a reasonable and low hassle one for the short term.

Asheron

You just inherited some paper monopoly money? wow!

Be a good little slave and put it in the bank and make 3% a year

Don't you dare THINK about investing that paper monopoly money to make more than 3% a year............

diable

hmmmmm 18 I'd be tempted to spend it on loose women and fast cars............................