How would you invest £1000?!

benjybars

Hello!

What would you recommend to someone who had £1000 to invest but was a complete and utter novice?

- Not looking for spectacular gains.
- Can pay up to £100 per month into an account
- Would like the option of having access to the money fairly easily

Any tips or advice hugely appreciated.
Cheers!

AnotherJoe

The amount isn't relevant. What is relevant is your intentions for it.
Is this for a year or two, or 30 years? By £100/month and £1,000 that implies you'd only be saving for less than a year.
By "access to the money fairly easily" do you mean you might want it at a few days notice or that you don't want lots of form filling or you don't want it locked away in (say) a five year term account? Or something else?
By "invest" do you mean shares or funds etc, or putting it ina savings account ?

benjybars

Hi thanks for responding.

- I guess it would be for between a year and 5 years
- I don't want lots of form filling or you don't want it locked away in (say) a five year term account
- I'm thinking shares and funds

What would you do?!
Thanks again :-)

Robin9

What is your attitude to risk ? If your go down the shares route are you prepared to loose everything (think Debenhams)

My suggestions - Building Society or bank Current account, even Premium Bonds. You won't get rich whichever way you go.

18cc

i would buy premium bonds your return will be anywhere between zero and 1 million.

ColdIron

benjybars wrote: »

- I guess it would be for between a year and 5 years

What would you do?!

Stick to cash

webjaved

benjybars wrote: »

Hi thanks for responding.

- I guess it would be for between a year and 5 years
- I don't want lots of form filling or you don't want it locked away in (say) a five year term account
- I'm thinking shares and funds

What would you do?!
Thanks again :-)

Stick it in an S&S ISA and leave it there - there's always risk involved, so don't expect making thousands during the short term. Remember investments are for the long term.

Alexland

Even balanced risk S&S investment are not suitable for time periods of less than 5 years as your investments will be volatile and the risk of withdrawing at a loss is unacceptably high. If you need easy access then stick to cash products.

AnotherJoe

benjybars wrote: »

Hi thanks for responding.

- I guess it would be for between a year and 5 years
- I don't want lots of form filling or you don't want it locked away in (say) a five year term account
- I'm thinking shares and funds

What would you do?!
Thanks again :-)

I definitely wouldn't be thinking shares and funds ! Totally unsuitable for 1-5 years.
Find a high interest regular saver account, you may be able to get up to 5%, and go that route. Or, if you are saving for a house, and havent bought one before a HTB ISA or a LISA>

benjybars

Thanks for taking the time to reply everyone.
Really appreciate it :-)

xylophone

Have you ever had a Nationwide Flexdirect current account?


If not, this might suit for a year.

You would open the account with £1000.

In the next month add your £100, transfer £900 to a non NW account and transfer it back again.

Do the same until the 5% interest offer expires after a year.

Look for a bank offering a switching bonus and transfer from NW to the new account.

TSB might be worth considering at that time plus a savings account offering the best interest you can get.