Total beginer to savings! What do I do with a lump sum?

Kells_Bells

Hey there

I don't know where to start here as I have never really had any savings as such ( I think my ISA topped at #955 a few years back )

So, when I found out recently that I will be receiving a cheque for #14,000 :beer: it kind of made me panic!

I have just found out that this won't be subject to any tax, which was my first concern, but what would you advise to be the best way to use this money??? - sensibly!

I am not sure how soon I would need it, so I want to keep it reasonably easy access. I also don't want the hassle of having to fill in a self assessment tax return thing :mad: as otherwise I am PAYE through my employer.

I know I can put 3000 in my ISA for this year, but what about the other 11,000? Any suggestions?

Many thanks X

Kelly

Aegis

If you want all of it readily available, It's probably best to put it into a high interest savings account. If you only need some of it to be readily available, consider investing in a stocks and shares ISA for a further £4000 of tax-free (but long term) growth.

BenL

Hi Kelly

Martins saving article (savings fountain) is a good read and should start to point you in the right direction.

http://www.moneysavingexpert.com/savings/which-saving-account

Ben

Kells_Bells

Thanks guys

Just wondered though, with stocks & shares ISAs for example, do i need to do a self assesment tax form or is the tax on interest automatically deducted?

X

Kelly

Aegis

With a stocks and shares ISA, all the required taxes (i.e. income tax on the dividends at the basic rate) are automatically taken care of. No further forms or actions are required.

However, it's not quite as simple as that. You have to choose where to invest the money, and that can require quite a bit of research.