£6k to invest

LeeGolding

Hello all :-)

I have 6k to invest as wisely as possible. 3k of this is currently invested in a Alliance & Leicester Direct ISA Issue 2 (5.4% paid out Jan every year). I received £90.88 Jan 2007.

Thanks in advance,

Lee.

dancingfairy

HAve you sorted out your cash ISAfor the next tax year yet? you can put £3000 in there. Also if you're really quick you might be able to put £3000 in for this tax year (if the one mentioned above is not for this tax year- which sounds like it might be).
After that perhaps look at funding a regular saver from a high interest account?

Rafter

If by 'wisely' you mean 'risk free' then the Cash ISA route is the way to go.

If you are prepared to take more of a risk then think about share based isas or trackers, but wouldn't be wanting to invest a lump sum in one of those at the moment given how turbulent the stock market has been.

As dancing fairy suggests, you can pay £3000 a year into an ISA - you are not limited to one lot of £3000.

If the A&L ISA isn't that competitive I think you can transfer an ISA which doesn't count against your £3000 limit each year - so you don't have to put up with a poorer deal in future years if rates drop.

R.

Jake'sGran

dancingfairy wrote: »

HAve you sorted out your cash ISAfor the next tax year yet? you can put £3000 in there. Also if you're really quick you might be able to put £3000 in for this tax year (if the one mentioned above is not for this tax year- which sounds like it might be).
After that perhaps look at funding a regular saver from a high interest account?

If you have the lump sum please don't bother with a regular saver; there is no point. There are some good rates for one year bonds. I noticed one with Northern Rock in the paper yesterday. They are paying 6% and I think the minimum was £1000. You can have the bond for 1,2 or 3 years I seem to remember. Have a look at their web site. At the moment I only use one year bonds as we don't know what will happen with interest rates but I do like to do a mini equity ISA too

SeanW

IF you have a high savings account paying 5.5% with instant access, and can fund a regular saver paying 8-10%, you will get around 7% total interest.

When you find an account paying 7% on a lump sum, let us know and we will tell people regular savers are pointless.

LeeGolding

Some good info there. Thanks :-)

1) Just a thought, do I need to close my current ISA and open a new one for this tax year? 2007/2008 I take it.

2) When should ISAs actually pay out. I would have thought it would be start of April. Strange that mine pays out annually?

Lee.

MickKnipfler

Where's the best deal on a cash ISA at the mo?

[Deleted User]

Hi,

you could have a wee read here for starters.