2k Savings - What to do?

csgohan4

Alexland said:

Brewer20 said:

My wife isn't that bothered with all this switching or trying to find the best place for her money. She actually refused last week for me to help her switch out of a dormant account to this Virgin Money account. She drinks wine too, I don't that much, guess where my wine will end up?

The main reason I am doing the Virgin switching offer is to keep my wife supplied with white wine. It's annoying they make you have a mixed case as we already have unwanted bottles of red. I'll probably just give all the red bottles to her parents next time we see them. After drinking plenty in my youth I am now mostly done with alcohol (as a source of dehydration and headaches) preferring a can of diet coke and a 2% interest rate.

Your investing in your wife which is not countable in interest rate alone, certainly beats an all world index tracker with minimal risk 

gozaimasu

yksi said:

If this the only "readily accessible" money you have, make sure it's not tied up so that you can get hold of it in case of emergency. People often recommend that you have 3-6 months' worth of living expenses in their emergency buffer.

Agree.

grumiofoundation said:

You can get 2%on £1000 with a virgin money current account (also some free wine).
https://www.moneysavingexpert.com/banking/compare-best-bank-accounts/#virginswitch

Agree.

If that's all the money you've got then try to do something with it that keeps it easy access for emergencies. The Virgin Money 2% deal being one option. Another option is to find a regular saver that allows you to withdraw your money without interest penalties. There are a few that fit the bill - Nationwide Start To Save 1% on £50-£100 per month which also gives you chance to win £100 prizes. Worth chucking £50/month away for the chance to win; Halifax, TSB, Lloyds offer regular savers at 1% (1.5% for Club Lloyds) - you are not obliged to pay in money every month. Halifax you have to close the account to access the money, but it will be paid with full interest you've earned up to that point. TSB/Lloyds you have pay in minimum £25/month for the length of the account, but you can withdraw at any time and if you can't afford the £25 anymore then you can close the account.

If I were you, I'd be putting £1k into VM CA, plus £1k in VM saver until I got the wine code, then I'd be taking the £1k out and feeding it into whatever regular saver I thought was best. Depending on how long it's taken you to save £2k, my guess is that the Start To Save is the best option. You're not obliged to pay in every month but in order to qualify for the prize draw you need to have saved £50/month for a minimum of 3 months preceeding the draw.

ElephantBoy57

When I was in my twenties I bought a unit trust for £1,000, my first dabble at investing. I was lucky and I gained around 10% in 12 months. I am now in my fifties and I invest in shares. Sometimes I can invest in a company and gain 20% in 6 months, on other ocasions the company has gone bust and I have lost all my money. I have gained my times, lost a few. If you dont like risk, stick to the banks, I like risk.

eskbanker

ElephantBoy57 said:

If you dont like risk, stick to the banks, I like risk.

Risk isn't as simple as that though!  Many use the generic term to signify the specific risk of capital loss, to support a simplistic narrative of 'investment = risky, saving = safe', but of course there are risks associated with cash savings too, but just different types, such as inflation risk and shortfall risk....

csgohan4

ElephantBoy57 said:

When I was in my twenties I bought a unit trust for £1,000, my first dabble at investing. I was lucky and I gained around 10% in 12 months. I am now in my fifties and I invest in shares. Sometimes I can invest in a company and gain 20% in 6 months, on other ocasions the company has gone bust and I have lost all my money. I have gained my times, lost a few. If you dont like risk, stick to the banks, I like risk.

trouble is, if you only have 2k to play with, best to put it in a risk free setting for an emergency fund, like Premium bonds or high interest savings account. You may need it for an unexpected bill. Rent deposits, insurance hikes, car repairs e.t.c

I certainly wouldn't risk my only 2k on Tesla. Only risk what you are prepared to lose