What is the best way to invest 25K?

mickynufc

Hi ,

Next June me and my partner hope to have saved 25k. We do not know how best to maximise the cash and wonder whether anyone has any quality advice?

Thanks in advance.:money:

wombat42_2

mickynufc wrote: »

Hi ,

Next June me and my partner hope to have saved 25k. We do not know how best to maximise the cash and wonder whether anyone has any quality advice?

Thanks in advance.:money:

If you are not willing to leave any of it alone for 5 years plus, dont stick it in the stock market just put it in cash ISAs (NS&I) and saving accounts (ICICI, Sainsburies or ICESAVE).

deftona

Investing in the stock market is risky, and you have to leave it there for at least 5 years, so if it was me, I would put 3k in each of your names into ISA bonds, then put the rest in guaranteed fixed term bonds for a year, or however long you plan to save it for.

Well, actually, if it was me, I would have probably have spent the lot on shoes!

deftona

Oh, and if you can't afford to put it away without access, a lot of banks have great interest savings account, the general rule being that the less access you need and the more conditions put on your account, the higher the interest rate you can have.

dunstonh

Investing in the stock market is risky,

Define risk. It isnt a single level of risk. Its a sliding scale and timescale certainly has a lot to do with it.

and you have to leave it there for at least 5 years

You dont. You should anticipate terms in excess of 5 years and shouldnt really invest unless you know you can afford to leave it there for at least 5 years but you can access it before then if you wish.

If the funds are needed by next june then of course, you wouldnt touch stockmarket unless you are an experienced investor and can face the potential loss. If its just a target but the funds are not needed for a longer term then you could consider some of it going into the markets.

isofa

Max out your cash ISAs first, 3K each this year, find the best rate you can, next year the allowance goes up a bit.

Then look at what to do with the remainder...

It's a good time for cash with interests rates going up, especially in fixed term accounts/bonds. 7.05% was listed on this forum recently from Stroud and Swindon.

Else Icesave (other instant access accounts are available!) is excellent for on-line instant access, but that's lower 6.2% gross at the moment.