£20k to invest..Where?

Benzi

I have £20k I want to save or invest asap. Wondered if anyone has some good suggestions on best way forward. HSBC, who I bank with are offering their income gurantee bond, 5,5% interest per annum. I am looking for something or someway of either splitting into two lots and letting the money gain over a year or more. Someone else suggested investing in a company?

Steve_xx

Put 3k into an ISA, probably this one from National Savings, paying 6.3% tax free.

The remainder might be put with ICICI Bank. They have an everyday account paying 6.41%, or a yearly bond paying 6.85%.

Jonbvn

Hi,

Without knowing your attitude to risk, it is a bit difficult to advise whether to invest or save. If you want to invest in stocks and shares (S&S), you can open a maxi ISA, with £7k this year and £7.2k next year. Alternatively, you can put £3k into a cash mini ISA (3.6k next year) and £4k into an S&S ISA.

The other issue you have to consider is tax. ISA's are completely free of tax. However, the ICICI account is not - assuming you are a tax-payer. Therefore, if you do not wish to invest in S&S you should have a look at Index Linked Savings Certificates (NS and I).

dunstonh

Someone else suggested investing in a company?

ignore their "advice". Someone new to investing should not pick a company and buy shares in that. All your eggs are in one basket and it is higher risk.

Plus, the fact you have asked the question about investing indicates you wouldnt have the knowledge to pick the right company to suit your needs.

Investment funds are typically better for the inexperienced investor.