Where should my daughter invest £2000

tichwhat1971

Hi my daughter has £2000 saved up but it's not in any account that pays interest as we have not been able to decide where to invest it short term upto 2 years.

Where should she invest some tell me premium bonds but I'm not sure

Any advice would be greatly appreciated

Thanks

fun4everyone

Personally I would put it in a TSB classic plus current account where it will earn 5% risk free, others may have better ideas. Assumes she is eligible for it of course.

I don't rate premium bonds at all.

slowpoke_rodriguez

How old is she?

bigadaj

fun4everyone wrote: »

Personally I would put it in a TSB classic plus current account where it will earn 5% risk free, others may have better ideas. Assumes she is eligible for it of course.

I don't rate premium bonds at all.

I'd agree assuming she is of suitable age. The 5% cashback on contactless is also very handy, could be generating £13+ per month.

Premium bonds can have their place but not in this situation I would suggest, based on the limited information available.

teddysmum

If she doesn't want any hassle or has no regular fund to pass through or use in a current account (eg TSB requires £500/month), then Tesco (at the moment) pays 3% with no requirement for paying in or DDs going out on up to £3000.

tichwhat1971

19 uni student

enthusiasticsaver

I would not put it in premium bonds either. TSB Classic is a good one at 5% but your daughter would need to put £500 in each month but can withdraw it immediately afterwards. If she doesn't want to do that the Tesco current account pays 3% up to £3k and there is no need for a monthly income or to set up direct debits

Dird

Is she single though o:

xylophone

If she is eligible to open an interest paying current account, the Tesco is the simplest and would pay 3%.

Savings accounts rates here

http://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

Eco_Miser

For two years, it's not considered investing, it's saving.
Best rate are here. Both TSB and Nationwide currently offer accounts paying 5% AER on £2000. She can meet the funding requirement by withdrawing £500 and immediately paying it back in. This is easier with a second current account, so actual cash isn't needed.
Rates are variable, and likely to fall.
Read the T&Cs of the accounts for details and to be sure they are suitable.

smile88egc

The interest rate on her student loan is about 4.6% so maybe she should look to repay that instead or not take out so much loan next academic year?