What is best way to invest lump sum for savings?

[MustangLady]

Hi, I've recently sold my house and the proceeds are currently sitting in a standard saving account in the Halifax Building Society. I'm now in rented accommodation so won't be looking at using the money for a couple years at least. I popped into the Halifax last night asking member of their staff what is the best way to invest my money and what other options I have other than the saving account it already sits in. He talked quickly, writing figures all over the place & completely baffled me with money terms, percentages and only gave me options on one other saving account. I told him throughout to explain different things in detail, I basically got the same replies and in the end told him I'd think about it and came away. He was also trying to talk me into home contents insurances, personal insurances etc. This is not what I wanted, I need someone to sit with me and give me options in laymans terms as I'm not an accountant, though not an idiot. I already have an ISA which is at its limit for this tax year. Some people have mentioned high interest long term saving accounts, stocks & shares, possibly other ISA's or putting money in different bank account completely. Can anyone suggest anything or put me on the right track where to look? Thank you.

[Brimoan]

I would just look at moneysupermarket.com

[mrs_overall]

The interest rates are so bad at the moment that I wouldn't bother. I have 30k (not mine, the kids inherited 10k each) invested in Premium Bonds. They have won every month since I bought them. The lowest amount received was £25 on each one (total £75) one month.

[seadogg]

MoneySavingExpert.com by Martin Lewis is very handy for good advice. Fixed term is the best you can do if the money can stay in for one year or more.

Avoid Building Society or Bank advisers like the plague. They just want commission on "dog" investments.

[factor-fiction]

Assuming you will need most or all of the money in the next few years I would stay clear of shares and riskier investments. I'd use a mixture of the best rate fixed term bonds (one year, two year and maybe 3 year) plus a high interest rate instant access account. I'd look at some tax free NSi accounts or anything else recommended by the MSE site. You could get some premium bonds too for a bit of fun.
Remember that for peace of mind you should split it between a few institutions bearing in mind the guarantee limits, although I'm pretty sure in practice that it will never be an issue

[gingejbee]

...before you settle on anything, you need to decide on a few points eg how much risk are you willing to take and will you need access to the money at short notice, or can you tie it up for a fixed term of one or two years. Then, go from there.

[Bazile]

Also avoid those nice people from Nigeria , who may want to put some
investment opportunities , your way

[VHG]

This months Which magazine has an interesting article about different ways to invest money, from low risk through medium risk up to high risk.

It discusses banks, bonds, stocks and shreas and gives all the options.

If you go to your local library they may have a copy (though it has only just come out).

[MustangLady]

Thank you all.. This is all very interesting. I shall take a look at MoneySavingExpert and purchase a copy of WHICH this week. You've all been a great help. One other thing, excuse my stupidity on this, but where do I go to discuss/buy premium bond (is that the post office) and where do you suggest talking to someone about equity income, fixed term high interest accounts or other options. As you say banks/building societies are all for themselves... what about Independant Financial Advisers?

[mrs_overall]

You can get an application form for premium bonds from the post office and can invest up to 100K. You can get your money back at any time - it takes about 3-4 days. Independent financial advisers can be good, but don't just pick one at random as there are some rotten ones too. Personal recommendation is the best. They will of course charge you hefty fees.
Good luck.

[LazarusShort]

I'd go along with Mrs_o for 30k of it, interest is not worth jack at the moment and with the PBs you may even win something. You've maxed out the ISA so just get the best savings account you can for the rest (and review regularly, they love to cut the interest on these things. That's the rock solid safest way. There are many options depending on how much of a risk you want to take.

[MustangLady]

Thanks again, appreciate all your replies.

[thenry]

If you send it to me I will invest it wisely for you. Trust me !

[Jennykenny]

Stick it in Premium Bonds. Safe, and easily accessible and straightforward. My husband has £30,000 and won £75.00 this month, £150.00 last month. I'm not so lucky, but who knows- there is a million pound prize every month.