Saving Advice Please

macvaio

My Girlfriend has just received £20,000 from a payout after her fathers death,

She was wondering whats the best wat to invest it to maximize interest, she would be looking to save it for 5 Years + before using as a deposit on house in the future

Any advice would be appreciated

Thanks

Mark

P.S she has just Opened a A+L bank account as my first throught was there regular saver account but im no expert

Rafter

Mark,

A regular saver account isn't going to be much use for a lump sum investment like this.

Your girl friend is best to invest as much as possible in a Cash ISA now and then again in April after the end of the tax year. Tax wipes out a big chunk of interest earned.

I suggest you also look for fixed rate savings as there is an expectation that interest rates will fall in the next few months.

If your girlfriend is prepared to risk the money, the best returns will come from stock market or other investments. You might consider putting some of the money in a stocks and shares ISA (i'd suggest a tracker) but with the economy wobbling a bit, she might loose in the short term potentially.

Good luck

R.

neilp

I would recommend against investment funds for such a short period, especially given current market volatility. My recommendation would be to put as much as possible in a cash ISA, and the rest in NS & I index-linked investment certificates (which have the great advantage of being tax free). Having said that, it would also be a good idea to check rates for fixed-rate bonds to see if these are competitive.