Options with £10k savings

ce123_2

I am currently a 4th year university student with ~£12k savings. Until now I have been keeping all my savings in an instant access savings account (~3%) followed by feeding it into a number of regular saver accounts (~4%). I have recently learned of stoozing, but feel it unlikely that I will be able to get a credit card due to my unemployed student status.

I am keen to try and maximise my savings so was wondering what options are available to me. I have had premium bonds in the past, but never won anything and ultimately found them to be a poor investment. I have also considered spending the interest I earn in savings accounts on lotto tickets. However, the odds are exceedingly long and I fear this would be somewhat a waste of time.

I am quick and keen to learn, so was thinking about getting into stocks and shares. However, I have been advised against this due to the 'current climate' making it hard to earn a decent amount back, especially as an amateur.

I would appreciate any suggestions.

ses6jwg

For the time being I would put £5340 into a Santander Flexible ISA Issue 3 and then the remainder into the best paying online saver you can find (about 3%).

As you are still in education and probably due to enter the job market you will probably need access to the capital sooner rather than later so it wouldnt make sense to lock it away.

If you are interested in stocks and shares read plenty of literature and open a fantasy share account and play around with that for 6 months.

However as I say, your first priority should be to get the capital you have into tax-free environments, whilst keeping it accessible, so your best option is a cash ISA this year, then add another lump to it next year.

When you secure a job, make sure you start contributing straight away to the company pension scheme, and try to maximise your contributions.

ce123_2

Thanks for the reply. I'm actually a medical student starting my 4th year of 6 years this September. I therefore won't be needing to think about tax free ISAs for a while. I have sufficient loans and grants to support my living for the next 3 years, so have a bit of flexibility with this money.

kidmugsy

ns&i Index-Linked Savings Certificates.

ce123_2

The anniversary dates for my current instant access and regular saver savings accounts are fast approaching so I was thinking of applying for an instant access Derbyshire savings account at 3.11% or a Santander Flexible ISA at 3.3%. In addition to this 3 or 4 regular savers at ~4% to drip feed £1000 per month. Is this sensible?

I'm concerned this is a waste of time as I have recently read in a few places that inflation makes the benefit to myself negligible at these percentages. Forgive me if I am mistaken.

I have also been looking at the NS&I index-linked savings certificates as mentioned in the above post. Are these a better idea to what I have described, bearing in mind that I am not a tax payer at the moment?

Thanks.

xrjtg

Inflation will happen whether you have the money is the best paying account or not. Getting the best return you can is always a good idea.

Congratulations on deciding not to buy lottery tickets. When we say you're better off putting the money in a savings account and spending the money on lottery tickets than holding premium bonds, the idea is to put you off premium bonds, not to get you started on the lottery.

kidmugsy

ce123 wrote: »

I have also been looking at the NS&I index-linked savings certificates as mentioned in the above post. Are these a better idea to what I have described, bearing in mind that I am not a tax payer at the moment?

They have the advantage that they preserve the purchasing power of your money whatever happens to the inflation rate. I'm a great fan of them. If you keep them for 5 years you will benefit from their being tax-free in the last couple of years. I recommend them as a good home for part of your money.