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where to put 20k

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Comments

  • Mikeyorks
    Mikeyorks Posts: 10,377 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker

    Im a noob so if im wrong, correct me please???

    OK. You've made two errors;)

    1. No such thing as a Maxi cash ISA. A Maxi ISA can solely have Stocks / Share - or up to £3k as the cash element. So at least £4k is in Stocks / Shares .... which means :

    2. It is not "as safe as houses" .. which is stipulated in the original post.
    If you want to test the depth of the water .........don't use both feet !
  • Ahhh i didnt realise that

    Fo shizzles!

    That actually helps me with a query i had.

    I have about 4.5K sat in a basic account at abbey nationals and its making no interest at all. I should have 6K saved before the next ISA allowance date

    Should i whack 3K into the IceSave Cash ISA, then get my brother to put in another 3K in his name.

    Then do the same for the following ISA year with 3.6K each?

    Say i do that and a better ISA rate from another provider comes along, can i transfer into that?

    Any other suggestions please?

    Ive read some disaster stories on here about Stocks and Shares ISAs. I think they can be good but with whats going on in the world at the mo, i think its best to hang fire or just use the same amount of money at a casino.

    Thanks dudes!
  • Mikeyorks
    Mikeyorks Posts: 10,377 Forumite
    Part of the Furniture 10,000 Posts Combo Breaker
    Should i whack 3K into the IceSave Cash ISA, then get my brother to put in another 3K in his name.

    No. Unless you're happy you're effectively giving your brother £3k?

    Put £3k in now - then the further £3.6k after 5th April. And, yes, you can transfer to another provider, at a later date, if something better comes along later.

    For any other money ... have a look at the best savings accounts. Will add the link in a second.

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

    ..... or look at the Regular Savers ... link at the top of the thread.
    If you want to test the depth of the water .........don't use both feet !
  • elizwalk
    elizwalk Posts: 12 Forumite
    Hi everyone, reading all of the above I had considered a house extention with the £8,000; thus increasing the value of my property. but and there is always one the latest talk is that properties in the uk are going to follow america and plumet? Help!!!!! confused
  • If you want / need an extention, then why not treat yourself to one, for that reason alone rather then to simply increase the value of your "propertah"?

    If you have a house "just" to live in, then a property downturn would not really affect you, as if you sell your house for less, it is very likely that whatever house you buy, you'll get for less that you would at the moment.

    Falling house prices are only bad of you are downsizing, or worse still selling, and then not buying another hosue. If you are trading up, then you'll actually benefit from falling prices (assuming all types of housing fall at the same rate).

    If you dont need an extention, dont buy one, and buy something that you do need! Or if you dont need anything, save the money! ;)
  • Thanks, have lost trust in investing as lately with a works pension closing, life policy paying less than expected, a wee woman like me is at a loss as to who to trust with money, it seems putting it under the mattress is as safe as any other option, unless you know a thing or to about the money market!:confused:
  • jamesd
    jamesd Posts: 26,103 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    elizwalk, cash ISAs are nice and safe for the short term.

    For the long term you'd look to mixture of investments in a personal pension or stocks and shares ISA. Doesn't have to be a high risk mixture but does have to involve the risk of say a 10-20% drop in a bad year to get maybe twice the average gain of a savings account.
  • Jake'sGran
    Jake'sGran Posts: 3,269 Forumite
    littleD wrote: »
    Thanks for the replies!

    I think I've got a plan together, what do you all think?

    Fill up both of our ISA for this years limit
    Then fill up both next years ISAs for that limit
    That puts 12k in a safe tax free place!

    Next open a regular saver I was thinking of Coventry BS - Family 1st (Benefit A/c) depositing £250 per month.

    L

    Go with the two cash ISAs for this year and next and put the balance in the Stroud & Swindon fixed rate bond paying 6.7%. Like they said on the money programme (radio 4 today) rates will definitely be going down. (A lot of people are turning to the building societies after the NR scandal. Don't bother with the monthly savers - work out the interest and see the difference between that and a fixed bond. These good rates will be hard to find very soon. Incidentally, Stroud & Swindon were so easy to deal with. It took only three days for them to set up the account and send the passbook. They checked my identity etc electronically so none of this business of sending utility bills and tax forms.
  • King_Weasel
    King_Weasel Posts: 4,381 Forumite
    Mikeyorks wrote: »
    No. Unless you're happy you're effectively giving your brother £3k?

    I just wanted to say if anyone wants a brother, I'm willing to offer my services.
    However hard up you are, never accept loans from your friends. Just gifts
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