best way to invest £10,000?

tucbiscuit

I've saved about £10,000 and want to invest it inn some way, what is the best way to do this? I am youngish(25) and don't mind being active in my investment.

does anyone have any ideas? thanks

peterg1965

Hello, this is my view on your £10K saving pot!

Investment depends on how much access you want for your money and how long you want to tie it up for. If you need ready access and you havent used up your ISA allowances this year (£7K in total - £3K cash ISA and £4K investment ISA) then I would be inclined to invest £6000 in intstant access ISAs (£3000 this tax year and £3000 after 6 April (next tax year). The best ISA rates (for instant access) are about 5.7/5.8%. The other £4000 in an online saver account - Icesave has one at about £5.7% - this is taxable of course. That would give you instant access should you want it.

For longer term investments, that you should consider locks your money away for the medium to long term, is Stocks and Share ISAs. You could invest £8000 between the two tax years (06/07 and 07/08) and have a spread of 'funds' dependent on your attitude to risk. I think the wise people on here would say a minimum of £1000 per fund so that would give you 8 funds. Look on a site like Hargreaves Lansdown - https://www.H-L.co.uk - who seem to be regarded as one of the most competitive fund provders for this type of ISAs. There is also plenty of information to help you choose your investment funds. The remaining £2000 could be put in an instant access ISA.

I am sure there will be more ideas but there is a starter for ten!