What to do with �23,000

[jmck66]

Apart from the obvious of 'spend it', I'm trying to be sensible here. Would it be best to pay an amount from my mortgage (a tracker 0.59% above the base rate) or would it be best to open a number of ISA's and keep the cash in there for now. I really want to use it as wisely as I can.

[factor-fiction]

You can only put �3600 in one tax year into a cash ISA (ok, �3600 now and another �3600 after 6 April).

Your mortgage deal is good. But the decision depends on whether your after tax savings interest exceeds the mortgage rate. Also bear in mind any penalties for paying off the mortage early.

[MarkyP05]

Depends on whether you think the financial climate has bottomed out. You can put up to �7200 into a stocks and shares ISA. If you look into the national savings and investments theres some tax reduced/free options including premium bonds - no interest obviously but average rate of return is over the current level of interest from a standard current account.

[dasherman]

1) Now is a great time to overpay your mortgage with rates so low. The more you knock off the capital balance,the less interest you will pay back over time.

2) Make sure you have some 'rainy day' money.

3) Top up your pension.

[janbee]

definitely premium bonds

[janbee]

I've had prem bonds for only a year but have already had a VERY good return on them. ( a five figure sum plus MANY smaller prizes of �50 and �100) I would say they've been a very good investment for me.

[dasherman]

Premium Bonds can be a great investment for some but rubbish for others,depending on how lucky you are.

In general I see them as more of an indulgence,something that has the potential to provide decent returns,but over time and on average won't.

[Skyline D]

I on the other hand have had premium bonds for over 30 years (not an enormous amount of them right enough, About �100 worth I think) and have never won a single penny.

Premium bonds, particularly low value investments, are just down to luck. Some people will get lucky, some people won't. Fine if you want to dabble, rubbish if you need the return.

[gilf]

Number 1 rule is pay down debt, banks make money (yeah don't laugh) by lending high and paying low.

Personally I'd pay most of it off my mortgage.