Investing just over 20k - advice needed plz?

AddictedMoneysaver

Basically, I've just inherited around £38,000 - £10k of which will be paying off debts, £8k spent on home improvements, and I'm hoping to invest the rest for the future (i.e. moving house). The cheque doesn't clear until Thursday so although I've been researching for a few weeks now I've still got a few days left til I start actually moving money around.

My question is, which is the best way to invest it? Following Martin's fountian method as a guide I'm planning to put £3600 into a Barclays Tax Haven ISA at 6.25% AER, put the rest into a Kaupthing edge instant access savings account at 6.5%, and filter out £250 each month into a Halifax regular saver in my name (7%) and £100 each month into a Halifax regular savers account in my Daughter's name (10%).

Is this the best way to do it at the moment? I'm 26 now and this is the first time I've been debt free since I was 18 so I really want to invest it safely (i.e. without risk of losing it or the value going down) the best way possible.

Thanks in advance!!

[Deleted User]

AddictedMoneysaver wrote: »

Basically, I've just inherited around £38,000 - £10k of which will be paying off debts, £8k spent on home improvements, and I'm hoping to invest the rest for the future (i.e. moving house).
The cheque doesn't clear until Thursday so although I've been researching for a few weeks now I've still got a few days left til I start actually moving money around.

My question is, which is the best way to invest it? Following Martin's fountian method as a guide I'm planning to put £3600 into a Barclays Tax Haven ISA at 6.25% AER

Great advise however I'd stick it in a fixed rate ISA, e.g.

Bradford & Bingley 1 Year Fixed Rate 6.25% AER. No need to worry the rate might drop in a few months time.
http://www.bradford-bingley.co.uk/sa...ISA-issue4.asp

AddictedMoneysaver wrote: »

put the rest into a Kaupthing edge instant access savings account at 6.5%

Again, great advice, really good rates on this account and guaranteed 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.

AddictedMoneysaver wrote: »

and filter out £250 each month into a Halifax regular saver in my name (7%) and £100 each month into a Halifax regular savers account in my Daughter's name (10%).

Is this the best way to do it at the moment?

Regular savers are great for 'new' money e.g. from wages, not so great otherwise.

Short term fixed rate bonds may be more up your street (your money would be tied up for 6 months, 1 year etc, but they have guaranteed rates of return which can be pretty high), for example:

Icesave 7.01% AER, 1 Year Bond, min £1,000 deposit

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