£10000 to save invest

woodieswife

Looking for help19yr ds has £10,000 to invest for at least 1 year any ideas thanks

Steve_xx

ICICI Bank, 1 year bond pays 6.85%

Link: https://www.icicibank.co.uk/hisave_termdeposit.html

Not forgetting to use this years ISA allowance for the first £3000. A&L might suit for this:

http://www.alliance-leicester.co.uk/savings/index.asp?page=direct-isa&ct=savingshome

Rafter

I'd invest £3k in cash ISA now and then £3k after April 5th - that way £6k is tax free.

Depends whether 19yr old is a tax payer or not though - if not, just go for a good savings rate.

Personally I'd avoid ICICI or other overseas banks offering 'too good to be true' savings rates and stick to a UK based bank given the current banking crisis.

Plenty on here would disagree though on the basis that the savings guarantee protects your investment and would pay out if a bank registered to take savings in the UK went under.

R.

Trying_to_be_good

I'd go with Rafter, but the cash ISA allowance next year (6 Apr 08 - 5 Apr 09) is £3,600 up from £3,000, so that's two-thirds of the money earning tax-free interest.

Aegis

Rafter wrote: »

Personally I'd avoid ICICI or other overseas banks offering 'too good to be true' savings rates and stick to a UK based bank given the current banking crisis.

Plenty on here would disagree though on the basis that the savings guarantee protects your investment and would pay out if a bank registered to take savings in the UK went under.

I'd be one of those people

I think it's a bit strange that UK banks are considered automatically safer than foreign banks, which are usually covered by their own guarantees in addition to the FSCS that we have here. Yes, it might add to the delay between a bank collapsing and getting your money back, but as long as you use, say, a couple of institutions you should still have access to some of your cash at all times.

missile

ICIC Bank UK PLC is authorised and regulated by the Financial Services Authority, but I still would not go there.

Steve_xx

missile wrote: »

ICIC Bank UK PLC is authorised and regulated by the Financial Services Authority, but I still would not go there.

.....me neither. I prefer a good, solid UK outfit, like Northern Rock where 100% of my deposit is guaranteed.

notis7

maximise your returns -3k in an ISA now - 3.6k in an ISA in april and the rest in an instant access internet account like abbey esaver of halifax web savings extra....

I too do not trust small banks or foreign investors....stick to the safe option - the bigger the savings provider the safer you are - realistically.....!

Go for the best new ISA deal out there....there will be quite a few over the next couple of weeks!

Steve_xx

notis7 wrote: »

I too do not trust small banks or foreign investors....stick to the safe option - the bigger the savings provider the safer you are

Why do you not trust small banks?

Why do you think that the "bigger the savings provider the safer you are"?

notis7

Quite easy to answer. If you consider RBS/Natwest, Lloyds, Barclays, HSBC, Abbey, Halifax and Nationwide as the big players in banking and savings you know the following:
The big 4 who are banking orientated have multinational operations and have a strong presence outside the UK to see them through any liquidity crisis.

Halifax and Nationwide are the UKs 1 and 2 in terms of savings deposits - so have "spare" funds for this type of problem........and Abbey have Santander behind them who are by the way purposefully pushing up rates in order to force companies like small banks to sell out....

Steve_xx

notis7 wrote: »

Quite easy to answer. If you consider RBS/Natwest, Lloyds, Barclays, HSBC, Abbey, Halifax and Nationwide as the big players in banking and savings you know the following:
The big 4 who are banking orientated have multinational operations and have a strong presence outside the UK to see them through any liquidity crisis.

Halifax and Nationwide are the UKs 1 and 2 in terms of savings deposits - so have "spare" funds for this type of problem........and Abbey have Santander behind them who are by the way purposefully pushing up rates in order to force companies like small banks to sell out....

Oh right, so you think that the big banks might not have any exposure to the credit crisis risks, or at least what exposure they have had they have enough cash to overcome their difficulties? And, it follows then that you might think that smaller banks have exposed themselves to more of the credit crisis risK?

Have you considered that some of the smaller banks might have almost no exposure to the sub-prime crisis?

I'm not sure what you mean by Abbey/Santander forcing smaller companies to sell out?

I take it that you work in the bank sector?