Investing savings further.

emilyjt

Hi there,

I'm thinking of ways of making my savings go further. I have saved more than enough for a 10% deposit on a flat in my local area, but due to the nature of my work I will not be able to apply for a mortgage for a couple of years, so I will continue to save into this deposit fund. However, I was wondering if there were ways of boosting my savings. I have my money split between a few ISAs, one of which being a Help to Buy which I pay into regularly.

I was considering looking into investing a small amount of my savings into shares or premium bonds but I was worried about the risk involved in this. What are other people's experiences of this? Or are there any other investment opportunities they would recommend?

Thanks

Edi81

Shares are far too risky for such a short term. In addition single company shares are even riskier than funds.

Premium bonds could net you a big win but you may not get any wins.

Albermarle

Premium bonds are a form of saving that are safe and backed by the Government .
Buying shares is an investement and is potentially very risky .
So the two things you mention are totally different . Some light reading recommended:
https://www.moneyadviceservice.org.uk/en/categories/saving-and-investing
https://www.moneysavingexpert.com/investments/

xylophone

Are you eligible for a LISA?

https://www.moneysavingexpert.com/savings/lifetime-isas/

steampowered

You are probably best off maxing out a regular savings account (https://www.moneysavingexpert.com/savings/best-regular-savings-accounts/) and putting the rest into (https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/).

Stocks and shares would be the correct option if you were intending to invest for the long term. Over the long term, stocks and shares are less risky than cash (stocks and shares always make money over the long term; cash loses out due to inflation). However, over a 1 or 2 year investment period, you might not want the "up and down" volatility of shares.