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

SideB

calypso_rhapsody wrote: »

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.

thank you The way I see it now it's either stocks and shares, but I know nothing at all about them.... OR the NSI index one, which is safe and would be £50 interest after a year which is nice because really I just want to save the money. But then, if I could put the £1,000 into stocks and there was a reasonable chance I just wouldn't lose it, i'd be happy to take the risk... but like I say I know nothing about them. Although it could be useful to spend the summer learning about it!

Ark_Welder

Although it could be useful to spend the summer learning about it

A good idea - something to do in the rainshine we're having at the moment...

...and also a reason for staying in cash for the meantime, and taking into account Calypso Rhapsody's important point that non-taxpayers can find better rates outside ISAs. If you think that you could keep your mits off it (does that translate to 'hands' at a national level???) then an instant access account might do until you decide further. A fixed-term account might mean having to wait longer before going S&S, but not necessarily a bad thing until you find out a bit more about them. Or less in a fixed-term now and more in instant access, then decide in September whether you would like to go the S&S route or another fixed-term, or even remain in instant access.