£9000 to invest for 13 months

Johanneh

Hi,

Apologies if this seems like a really silly question - new to all this! I have £9000 to invest for 13 months - where should I invest it to get the best return from it? It is between my other half and myself.

neilp

Have you used your ISA allowance? If not, put £3,600 of it each in a cash ISA. After that, a 12-month fixed rate account is probably your best bet, though that will tie up the money for the full term. Icesave is a very good bet for both at the moment.

Johanneh

Hi Neil, Thanks for that

dunstonh

Your timescale is too short to invest. Stick to savings

[Deleted User]

I'd echo a lot of what has already been said.

1. Fill up your ISA allowance of £3600 for this year - Bradford & Bingley 1 Year Fixed Rate 6.25% AER looks good. No need to worry the rate might drop in a few months time.
http://www.bradford-bingley.co.uk/sa...ISA-issue4.asp

2. Split the rest between this step and step 3 depending on hor much access you need to the dosh (easily accessible here). Put whatever amount you feel comfortable with into the best instant access savings account you can find, for example:

Kaupthing Edge 6.50% AER, at least 0.30% (gross) higher than BoE rate until 01/02/2012. You need to have a minimum of £1000 in the account though to get this rate.
http://www.kaupthingedge.co.uk/OurPr...gsAccount.aspx

3. Short term fixed rate bonds (money tied up for 6 months, 1 year etc, guaranteed rate of return), for example:

Icesave 7.01% AER, 1 Year Bond, min £1,000 deposit - meaning the money is tied up for 1 year in this bond but you're guaranteed 7.01%AER.

http://www.icesave.co.uk/fixed-rate-savings.html

4. Finally you may like to investigate Index-linked Savings Certificates:

http://www.nsandi.com/products/ilsc/index.jsp

Jake'sGran

Saga and Birmingham Midshires paying just a bit more than Kaupthing Edge for a one year bond.

[Deleted User]

Jake'sGran wrote: »

Saga and Birmingham Midshires paying just a bit more than Kaupthing Edge for a one year bond.

Saga = 6.76% gross/AER
Birmingham Midshires = 6.7% gross/AER
Icesave = 7.01% gross/AER

I actually suggested Kaupthing Edge 6.50% AER instant access savings account...