£3000 to save- but where?

sammyk21

I have £3000 that i would like to save and get the most from it. I already have an ISA which i save monthly into but would like an idea of what to do with the £3000. I am currently with the Cheshire and thay offer loads more ; fixed ISAs, Bonds, Members privelege bond and loads more.
Any ideas?

Also i get confused on the rates- if one account offers 6.05% and one offers 6.25% which one is better? the higher or the lower?

Thank you

Aegis

sammyk21 wrote: »

Also i get confused on the rates- if one account offers 6.05% and one offers 6.25% which one is better? the higher or the lower?

Compare the AERs (Annual Equivalent Rates). The higher one is the better in most situations.

Lavendyr

How long-term are you looking to stash it for?

If you'd consider investment, you could put it in a stocks & shares ISA and make the most of your tax-free allowance. But you'd need to be prepared to lock it away for at least 5 years to see decent return.

Or if you think you will need it in the mid-term, you could stick it in a fixed-rate bond for a year or more, there are some top rates around at the moment (e.g. 7% from A&L).

Or you could think about index-linked certificates from NS&I which guarantee to beat inflation. Minimum 3 years I believe.

martinman3

Lavendyr wrote: »

Or you could think about index-linked certificates from NS&I which guarantee to beat inflation. Minimum 3 years I believe.

But you can cash in part of the investment in multiples of £100 at any time but if you do it in the first year you lose the interest on the part you cash in, otherwise interest accrues monthly.

cloud_dog

sammyk21 wrote: »

I have £3000 that i would like to save and get the most from it. I already have an ISA which i save monthly into but would like an idea of what to do with the £3000. I am currently with the Cheshire and thay offer loads more ; fixed ISAs, Bonds, Members privelege bond and loads more.
Any ideas?

Also i get confused on the rates- if one account offers 6.05% and one offers 6.25% which one is better? the higher or the lower?

Thank you

I think your best bet is to top up your ISA immediately (unless it is a monthly save type account), then irrespective of what you do with the remainder (which account you chose) you should ensure you can close the account and put it in to next years ISA in April.

cloud_dog

jamesd

Start a regular saver account with monthly payments. In April stop the regular payments into the cash ISA and make a lump sum payment of all the remaining cash on hand. Continue to do the monthly saving with the regular saver.