Ive been given a lot of cash! what to do?

15lsp

lewt wrote:

All on red at vegas

Now there's an idea! :j

Kilty_2

pbw wrote:

the NS&I ISA pays interest once a year. so with 3k, you would get £174 per year (which is equal to £14.50p/m)

however, i would go for the bradford and Bingley ISA which pays 5.18% and interest can be paid monthly into your current account. you would get £12.95 per month)

So why have interest paid monthly into a current account where it can be spent and degrade the value of the capital?

NS&I ISA is the best option, especially with just £3000 where you dont need the interest to be paid monthly. What exactly would you do with £12.95 a month that's so important it sees your savings get caned by inflation?

Idiophreak

15lsp wrote:

Ive been given a lot of cash! what to do?

Share it about of course!:beer:

Mikeyorks

Kilty wrote:

So why have interest paid monthly into a current account where it can be spent and degrade the value of the capital?

Totally agree with that .. given your earlier post .. that you're inclined to spend! Around £60 a month is just 'fritter away' stuff ... £720 pa looks much better?

Pay off the £5k of debts that will be running at interest rates above those you will save at. But do not pay off the SLC .. which is currently charging 2.4%.

£3k in an ISA now - and £3k to add to another one (look on here for the best closer to 6th Apr 07 - when the new year starts) in April. Leaves £17k to put into an easy access account - and you've already had some advice there. Then take £3k out for the ISA in April

pbw

Kilty wrote:

So why have interest paid monthly into a current account where it can be spent and degrade the value of the capital?

NS&I ISA is the best option, especially with just £3000 where you dont need the interest to be paid monthly. What exactly would you do with £12.95 a month that's so important it sees your savings get caned by inflation?

i suggested all the monthly interest options as it is clear this person likes to spend and the worst thing for someone who likes to spend is to always keep dipping into their savings.

the monthly option will allow them to keep their original capital and will make them feel less guilty about spending the £79 per month...

afterall, though the original capital will lose out to inflation, at least the figure of 20k will remain there...

whereas if the person was to put the 20k in a place where they will get annual interest, you might find they will "dip" in regularly and the original 20k is slowly eroded to nothing...

that was my thinking anyway

cledor

Buy a flat in Eastern Europe and let it, you'll probably double your money in less than 5 yrs.

15lsp

cledor wrote:

Buy a flat in Eastern Europe and let it, you'll probably double your money in less than 5 yrs.

On paper sounds good but i don't really want the hassle.

Thanks all for the sound advice. Its given me a basis to start looking into investing. Ive read Martin's pages on these things but its very easy to get confused and know what to do.

Im going to Las Vegas in October for my dad's 50th so i could just keep it all for the gambling! Only joking i think i'll start with a few ISA's like you have suggested and go on from there.

Thanks again, Laura

bristol_pilot

Buy the Audi TT. I got an "early inheritance" of £20k and spent it on a new car and the donor got a lot of pleasure seeing me enjoy the money.

niccy

START your own business :eek:

aleph_0

You want to build up as much money in the ISA as possible, and you have the option of getting the interest from the ISA paid *into* the ISA, so why not go for the Yearly option and this allows you to build up more money above the £3k annual limit, which is always good . You have been told the amounts you would expect to get monthly otherwise, so if you want to take this interest (hence letting inflation eat away) why not just take that out of the capital that is outside the ISA to an equivalent amount if you want to do this (we have told you the figures).

I think learning to just say 'I'm not going to touch this money' and then carrying that out would be a far better plan than the ideas currently suggested.