15-year-kid wants to invest £400

Jsimbaz

Hi, I'm Josh, I'm 15 (until feb. next year) and I have got my hands on £400. I have one problem though, I am a spend-aholic! I want to invest my money, somehow for a few years so I can put it towards a car or something when i'm older. At the moment it's in my Natwest Cashcard account (with a solo - hense the huge spending problem).

I have no idea where to put/hide/invest the money - I was looking at the stockmarket investment on the email this week, but I would need another £600 for that, something at the moment my parents don't have.

I would like someone to recommend an investment solution - preferably with a guaranteed return at the end (remember im 15!)

I thank you in advance and look foward to hearing your reply,

Josh

ps. :money: nice smiley martin! :money:

Jsimbaz

Thanks for that Al Mac, I will look into those options and i will see what others say

Josh

Everest

Hi Josh,

Must say that its fantastic you are so keen to start saving; this is a fine habit that will see you well through life. It is certainly good that recognise you spend-a-holic nature and want to tame it!

If you really are afraid of the temptation to blow all the money on the horses then you probably want a fixed term savings account. Most banks offer such savings accounts for between 1 and 5 years with increasing rates of interest the longer the period you opt for. In anticipation of the Bank of England lowering interest rates over the next couple of years, however, these rates aren't amazing at the moment: as far as I can see, the best you can get at the moment is not much more than 5%.

To have a good look at all that is on offer a good place to start is http://www.moneysupermarket.com/savings/ . Here you can search for a fair spread of savings products from a range of banks. Check back here to see what people think of ones you are interested in.

More specifically the best buys section from here http://www.moneysavingexpert.com/buys.phtml#BANK will give you a list of what seems to be the best at the moment.

Hope this helps.

payless

Whilst not closing the temption , look at
www.co-operativebank.co.uk (childrens bonus account)
whilst interest rate is 4%, they also pay £10pa bonus for those aged 13-18
( worth at least the £50 min balance deposit )

Jsimbaz

Hey everyone thanks for all the help i've recieved.

I think what I will do is the Co-Op bank one, £10 just for having £50 in the bank for a year sounds great!

I will tell my brother and sister about this one because it sounds very good!

Thanks again,


Josh.

deemy2004

Pit it into a long-term fixed rate bond say 3 or 5 year term that way you won't be tempted into spending it