£3K To invest Non-tax payer

chrisrsmith

Hi
My daughter has just finished a regular saver acct at 8%. She now has set another one up but has the first £3K to invest elsewhere.

Where's the best place to invest - she doesn't need the money for another year.

She is a non-tax-payer.

Thanks

tom188

Do you mean save or invest?

if you mean save then
if she is likely to pay tax in the future then an ISA is still best
NS&I direct isa is tops for easy access, at 5.55%.
Northern rock has 1 year term fixed rates at 5.5%

dunstonh

If you mean invest, then shes probably best off not investing and sticking with saving. 1 year is not enough for the average person to consider investing.

ReportInvestor

Hi Chris and welcome to this sectin of the site .

Derbyshire BS Fixed Rate account for 1 year @ 5.75% or Anglo Irish Bank 1 Year fixed rate bond @ 5.85%.

It depends on when, and how far you see interest rates rising - and when, and how far the top paying other accounts will match any interest rate rises.

Personally I'd go with the fixed rate 1 year accounts.

tom188

But dont forget that if you dont use your tax free allowance this year, it will be lost forever, and could potentially be valuable if you start paying tax at a later date.

ReportInvestor

Fair point.

Although not many non-taxpayers manage to keep paying £3K into their ISAs each year.

Perhaps Chris, the OP, could clarify the situation?