suggestions needed

coolcats

I am about to get a lump sum of money. I will lose some benefits and will have to live on this for the next few years, hopefully with a job as well. But till then what is the best plans for it. I plan to open an ISA as soon as possible and got to the maxium for it. I am also thinking of a couple of bonds so that each year I will have money for the following year or to reinvest if I have an income then. I don't want to do anything with a high risk as I can't afford for it to go wrong. Any other ideas?

evenasus

You should open an ISA for this financial year - the full allowance being £5340.00

Then after April 6th, you can open another ISA and use the full allowance for 2012/2013 of £5640.00

Check out the Santander ISAs http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&canal=CABBEYCOM&cid=1210607970481&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_TemplateY2

Also see a list of ISAs here... https://forums.moneysavingexpert.com/discussion/401374

Totton

Cash ISA's and any new NSI certificates should they get offered for sale this year. If inflation does fall as forecast then savings rates should keep pace with it whereas at the moment cash is losing ground.

xylophone

Presumably you will open a cash ISA for this year as soon as possible and then one for next year as soon as possible after 6 April.

You do not say how much you have, but presumably you will want to set aside on easy access as much as you need to live on (the amount of the benefits foregone)?

You might put the rest into a one year bond and then see what your financial position is next year.

Don't forget R85 if applicable and see also http://www.hmrc.gov.uk/tdsi/ten-per-cent-guidance.htm - the tax allowances in the examples are out of date - see http://www.hmrc.gov.uk/rates/it.htm

coolcats

Its £40k. Have planned to do the ISA this year and next if it arrives in time. Have worked out what I spent last year so based what I will need on this figure. But still should have enough for a 1 or 2 year bond for next years spending and ISA. Wonder if the bond is the best thing or if something else is worth looking at. This year spending money will go into an easy access as I will need to use it till a job comes along.
Also looking at ISA being a fixed term to get slightly higher interest.

evenasus

If your'e looking for a fixed rate ISA, then the Santander 2 Year Fixed Rate Major ISA @ 4% (possible 4.10%) might suit you.

If you opened one now and put this years allowance in, it allows you to also add next years allowance between 06/04/2012 & 14/04/2012.

http://www.santander.co.uk/csgs/Satellite?appID=abbey.internet.Abbeycom&canal=CABBEYCOM&cid=1237908316644&empr=Abbeycom&leng=en_GB&pagename=Abbeycom%2FPage%2FWC_ACOM_ViewSelector

xylophone

http://moneyfacts.co.uk/compare/savings/accounts/search/ might throw up some choices.

Since you need the cash to be relatively liquid and held risk free ( apart from the inflation risk!) deposits of one kind or another seem to be your only option?