£10,000 to invest for long term future..please help me

financial_filly

I need some advice and I couldn't think of a better place to come than here -the best money savers in the world.

My grandmother died last year and as a result we are currently selling her house. Once sold my mum is giving me £10,000 which i dont plan on spending at all.

But i am so confused as to where exactly i should put this money (my head is spinning with isa's etc.) I would like to get a decent return on my money but do not really want to take too much of a risk.

Also we will have £2,000 for my son (3) which i want to lock away until he is at least 18. what should i do ? should i just invest it in the best childrens account or go for a trust fund???

I really want to make the right decisions for both me & my son as i know my grandmother would have wanted to make sure that we were getting the best we could for the money she left us. Any advice would be most helpful.

Thanks guys in advance :)

ED

Sympathies for loss of your grandmother. Perhaps you wish to put the £10,000 into savings accounts with building societies and banks, rather than investment facilities (shares, etc).

£3,000 per tax year (ending each 5th April) can be put into a Mini Cash ISA.

Up to £1,000 per month can be deposited in Derbyshire Bdg Society's regular, monthly savings account, which pays 5.85% gross and allows one penalty-free withdrawal per yr. Meanwhile, you could have instant access to the bulk of your funds by putting them in Alliance + Leicester's Online Saver a/c (paying 5.35%). You'd need, each month, to move some of the funds to a current a/c from which a Standing Order would feed Derbyshire's a/c.

How about :

£10,000 -
£3,000 to Mini Cash ISA

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£7,000 -
£6,000 via £500 per month into Derbyshire monthly a/c

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£1,000

If you happen to be an existing customer of Leeds & Holbeck Bdg Society, they currently offer 6% for a Loyalty savings a/c (up to £5,000 balance allowed). Other societies periodically offer loyalty accounts (eg Coventry BS, Nationwide BS). Are you a customer of any bdg societies?

chateauneufdupape

Have you thought about the charity bank? http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1110799596,65191,