Small Investment

sheenaread

I am looking to invest a very small amount, under £100 even less to start with if possible.


I would invest the amount, hopefully make a small profit, then reinvest, hopefully make another profit and then so on and so forth.


Is this possible or is it an unrealistic dream?


If it is possible where do I start?


Without stating the obvious I don't want to be conned or ripped off - just make an honest profit on my investment.

jimjames

Reality? Unrealistic dream.

It's perfectly possible to start investing with £100 but not to do trading which it appears you are proposing.

Put in £100, keep adding to it and after 20 years you should have a reasonable sum. It's time that matters to allow compounding of returns, trying to trade into profits short term is unlikely to be successful.

brasso

sheenaread wrote: »

I am looking to invest a very small amount, under £100 even less to start with if possible. I would invest the amount, hopefully make a small profit, then reinvest, hopefully make another profit and then so on and so forth.

Is this possible or is it an unrealistic dream?

If it is possible where do I start?

Without stating the obvious I don't want to be conned or ripped off - just make an honest profit on my investment.

Do you mean invest in the stock market? No, it's not realistic. There are some big drawbacks with your chain of thought.

You'll have to pay a fee to buy and another to sell which will eat up any profit you might make. A bigger problem is that you can't guarantee anything you invest in will increase in value -- and certainly not in the short term.

With £100, a better bet would be to buy something on eBay that you know is undervalued and sell it at its market price. If you kept on doing that successfully you would end up with a big profit. Trouble is, it only takes one bad decision to be back at square one.

kingrulzuk

sheenaread wrote: »

I am looking to invest a very small amount, under £100 even less to start with if possible.


I would invest the amount, hopefully make a small profit, then reinvest, hopefully make another profit and then so on and so forth.


Is this possible or is it an unrealistic dream?


If it is possible where do I start?


Without stating the obvious I don't want to be conned or ripped off - just make an honest profit on my investment.

Why not save the money every month in good interest paying current account. after a year or so check this out: http://www.moneysavingexpert.com/savings/peer-to-peer-lending

sheenaread

Thank you for your replies.


So investment is not what I should be doing? I should be putting my money into savings and building on it from there? Would a cash Isa be best or just find a savings account or current account with the best interest rates?


Regards

kingrulzuk

sheenaread wrote: »

Thank you for your replies.


So investment is not what I should be doing? I should be putting my money into savings and building on it from there? Would a cash Isa be best or just find a savings account or current account with the best interest rates?


Regards

Cash Isa max you can earn is 2% tax free.
Current account Max you can earn is 6% but have to pay tax.
so if you pay 20% tax on 6% = 4.8%
40% tax on 6% = 3.6%

Now think about it and see which one do you think is best for you Simples

sheenaread

The current account option! Yes?


Most current accounts expect you to pay in a set amount each month and have at least a couple of direct debits running from that account. Is there anything illegal in setting up numerous current accounts? For example pay my salary into one which covers their basic minimum amount for the month. Then transfer money into another current account to cover their basic minimum amount for the month and so on....

bowlhead99

You can have as many current accounts as you like. They will typically do a credit check to see if they want you as a customer. There is nothing 'illegal' about opening accounts with more than one bank, just like you can shop at Tesco AND Sainsbury AND Asda without breaking any law. You can walk into Tesco with a full Sainsbury shopping bag and they might wish you did all your business with them, but they will still let you shop.

You just have to meet the minimum terms and conditions to qualify for the account and any interest payments. If they say put in £500 a month, do that, then you can take it out again the same day or the next day and give it to someone else, if you want.

Clearly if you are only 'investing' £100 then you are well below the limit of all the current accounts so you can just use the best one. But if you have £5000, £10,000, £30,000 you may need to use multiple accounts to have your money spending most of its time in the highest interest accounts because they all have limits on what balances they pay interest on.

jackknight

You can have as many current accounts as you like. They will typically do a credit check to see if they want you as a customer. There is nothing 'illegal' about opening accounts with more than one bank, just like you can shop at Tesco AND Sainsbury AND Asda without breaking any law. You can walk into Tesco with a full Sainsbury shopping bag and they might wish you did all your business with them, but they will still let you shop.

You just have to meet the minimum terms and conditions to qualify for the account and any interest payments. If they say put in £500 a month, do that, then you can take it out again the same day or the next day and give it to someone else, if you want.

Clearly if you are only 'investing' £100 then you are well below the limit of all the current accounts so you can just use the best one. But if you have £5000, £10,000, £30,000 you may need to use multiple accounts to have your money spending most of its time in the highest interest accounts because they all have limits on what balances they pay interest on.

That's good to know. I've been bitten by the savings bug, and I recently decided to apply for a few of the really enticing current accounts that are mentioned on MSE. I was just a little anxious because I didn't know if I was going to get "told off" by the banks for opening multiple accounts with different providers. I figure, as long as I can meet their requirements of minimum payments each month etc. then it should be all right.