best place for 5k?

ljohns

I've got £5000 currently sitting in a bank account. I don't have any debit and am wondering were is best to save? I assumed an ISA but wanted to hear of any other options. 

Daliah

Article on the site, 4 months old but probably even more valid now than it was then: https://blog.moneysavingexpert.com/2022/04/martin-lewis-ditch-cash-isa/

You can compare the current best rates on https://moneyfacts.co.uk/

masonic

I doubt an ISA would be the best place for £5k if that's your only savings. Have you tried here?: https://moneyfacts.co.uk/savings-accounts/

Beddie

Some ideas here - you get a better rate outside of an ISA these days. And there'll be no tax to pay.

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

Raveloe

If you are looking for no-risk savings, your options are well covered on the savings interest sections of this website. In your situation I would be tempted to open a stocks-and-shares ISA and invest, say, £1,000 there. Much riskier than deposit accounts but possibly much more profitable too. Think about your appetite for risk and your capacity for loss and make a decision accordingly. Remember that when you do not get what your want, what you do get is experience — so that over a lifetime even losses can have enormous value.

Albermarle

Raveloe said:

If you are looking for no-risk savings, your options are well covered on the savings interest sections of this website. In your situation I would be tempted to open a stocks-and-shares ISA and invest, say, £1,000 there. Much riskier than deposit accounts but possibly much more profitable too. Think about your appetite for risk and your capacity for loss and make a decision accordingly. Remember that when you do not get what your want, what you do get is experience — so that over a lifetime even losses can have enormous value.

It is normally better not to make too many suggestions, when the OP has given so little detail. It could well be a S&S ISA would be a good idea, but so could opening a LISA, or addingto/starting a pension, or overpaying the mortgage( if they have one). They might be saving for a house deposit, new car etc
Unfortunately a lot of posters just ask one line questions, without giving any context or background.

jimjames

A cash ISA is probably a bad idea if you want the most interest. Between Nationwide and Virgin Money will get you a decent rate on your £5k, averaging around 2%.

masonic

jimjames said:

A cash ISA is probably a bad idea if you want the most interest. Between Nationwide and Virgin Money will get you a decent rate on your £5k, averaging around 2%.

Probably no need to subject yourself to Virgin Money for 2% on £1k any more. There are a couple of easy access options that now equal/better this and don't have a low interest ceiling.

ljohns

Hi, 

Thank you all for your input. A valid point about not providing enough detail- I've just spent most of my savings on reneovating a house (to live in). I have approx 90k left on the mortage with the house (bought for 230k probably worth 290 now) so trying to rebuild savings. II don't have any debt and a steady personal income. I'm generally quite risk adverse but could stomach putting 1k into stocks and shares ISA so I'll look into that. Thank you. 

Albermarle

ljohns said:

Hi, 

Thank you all for your input. A valid point about not providing enough detail- I've just spent most of my savings on reneovating a house (to live in). I have approx 90k left on the mortage with the house (bought for 230k probably worth 290 now) so trying to rebuild savings. II don't have any debt and a steady personal income. I'm generally quite risk adverse but could stomach putting 1k into stocks and shares ISA so I'll look into that. Thank you. 

'm generally quite risk adverse 

I would say spending a lot of money on renovating a house is potentially quite risky, especially compared to putting a relatively trivial amount into a S&S ISA.