What to do with £1000? I want to save/invest it...

SideB

Hi there,

I've recently won some money gambling, and just above £3,000 in my current account now. I know for many people that won't be much money, but I'm quite happy because I'm able to splash out a bit over summer and my second year at uni, and also cover accommodation costs in London without having to do any additional work...

I don't want to spend it all though, and want to lock away at least £1,000 of it and was just hoping for some advice as to what to do with it? I either want to invest it, or just put it into a savings account, but I'm not sure which of the two, and if the latter, what account to use...

Could anyone here give me some advice on this please? I appreciate that £1,000 isn't a great amount to start with for investing, but I don't care, because I just want to lock it away and make sure I don't spend it. If there's some kind of investment I can make with a larger amount I'd do it, as long as I could get £2,000 out by September so I have money for uni.

Thanks

Brian_Bullocks

SideB wrote: »

Hi there,

I've recently won some money gambling, and just above £3,000 in my current account now. I know for many people that won't be much money, but I'm quite happy because I'm able to splash out a bit over summer and my second year at uni, and also cover accommodation costs in London without having to do any additional work...

I don't want to spend it all though, and want to lock away at least £1,000 of it and was just hoping for some advice as to what to do with it? I either want to invest it, or just put it into a savings account, but I'm not sure which of the two, and if the latter, what account to use...

Could anyone here give me some advice on this please? I appreciate that £1,000 isn't a great amount to start with for investing, but I don't care, because I just want to lock it away and make sure I don't spend it. If there's some kind of investment I can make with a larger amount I'd do it, as long as I could get £2,000 out by September so I have money for uni.

Thanks

Have you got an ISA?

SideB

Brian_Bullocks wrote: »

Have you got an ISA?

No I don't!

Brian_Bullocks

SideB wrote: »

No I don't!

Well get one, 3% Halifax ISA Direct Reward is pretty good and your money is not tied.

atush

I would normally tell you to put it in a cash ISA. But as you are a gambler I am not so sure about that, and maybe locking it up so you can't get your hands on it is better lol.

You could open an ISA and put 500 in cash as above, and 500 in S&S? Would that small amt of gambling keep you ont he straight and narrow lol?

And congrats on your win and for coming here rather than blowing the lot ;-)

SideB

Thanks for the advice Is 3% ISA the best I'd get? Would there not be one that pays higher if I lock it in?

And sorry, I have no idea what S&S is!

Also re. the gambling, to be honest, my total win was £4000, but I blew around £800 of it already back on the gambling. I've had ups and downs over the last few months, and won point I was up £8000, and at my lowest point I was -£3500. To be honest, I'm very luck to actually have £3,000 right now. Anyway, I don't want to gamble again, and hopefully I won't, but I want to lock away some money anyway, because if I don't gamble, I have enough to keep me going the next year and the rest can be saved for a rainy day...

SideB

Would premium bonds be a bad idea? I'd only get £30 interest max in an ISA, and I know the chances of getting more on premium bonds are very very low, but worth a shot? Or is there a better option?

atush

S&S is stocks and shares.

And get yourself down to a meeting of GA before you weaken!!! Sounds like you had a LB (lightbulb) moment but we arent' sure how long it will last so get yourself down there pronto.

SideB

atush wrote: »

S&S is stocks and shares.

And get yourself down to a meeting of GA before you weaken!!! Sounds like you had a LB (lightbulb) moment but we arent' sure how long it will last so get yourself down there pronto.

I'd really have no idea to start with shares!

atush

You could put it in a FTSE all share tracker that tracks the moarket as a whole and would rise (or fall) when the market does.

And find your nearest meeting, I am not kidding. You may feel the urge to gamble this away before you make up your mind, esp if your bookie finds you and tempts you.

calypso_rhapsody

What do you want to do with this money in the long term?

Stocks and shares (even in a FTSE tracker) should be regarded as a long term investment - minimum 5 years really. You obviously enjoy taking a risk so maybe a £1000 punt on a high risk area like emerging markets might appeal ... but do some research first! And i second the comments about seeking help if gambling is becoming an addiction!

I would assume you are not a tax payer, being at Uni, so the value of a tax shelter such as an ISA is not that great for you at the moment but once you become a tax payer then it may be. Yes you can get higher rates in fixed term ISAs by fixing for a longer time (3 or 5 years typically) but of course interest rates might go up during that time. Has the advantage that you won't be able to get at it and gamble it away!

You could also think about the NSI index linked product - basically pays RPI plus a little bit tax free. It's a 5 year product but you could get out after 1 year. Should protect your cash from erosion by inflation.