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hi! , i have recently received a �10.000 payout from an an acccident i had in 2005. I would like some advice as to how to invest it. i honestly admit i havent a clue about money and i know if i walk into a bank and ask,that they wont necessarily give me the best advice as they may be biast. I need to be able to access it if necessary (only in emergencies), and i obviously want to earn a decent amount of interest- so far i've been told invest in premium bonds or open mini icas or high interest bank accounts. I haven't a clue where to go and i dont understand all the jargon that goes with each suggestion. If anyone could advise me i'd be most grateful. Thanks
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If I were you, I'd pick up some leaflets.
It was only yesterday that I was reading about the Chelsea building society paying 6% on savings for new account holders.
There are lots of good deals out there, but be careful some of them carry penalties of some form.
Maybe you could put half in a really good saving account, one where you cannot draw out so regularly and the other half in a lesser paying account.
It was only yesterday that I was reading about the Chelsea building society paying 6% on savings for new account holders.
There are lots of good deals out there, but be careful some of them carry penalties of some form.
Maybe you could put half in a really good saving account, one where you cannot draw out so regularly and the other half in a lesser paying account.
If you invest money in premium bonds (min. investment is �100) your cash is safe but obviously you won't get any interest and the odds of you winning anything are very low.
You can invest �3,000 in a mini cash ISA each year (if you invested �3K now you couldn't add to it until the new tax year in April 2008). The interest you earn from an ISA is tax free. There are various types of mini ISA - some allow instant access, some are notice accounts and of course interest rates vary from provider to provider. Any bank or building society who offers you free advice will only point you in the direction of a limited number of products. There are also maxi ISA's but these are linked to the stock market.
You could always go see a totally independent financial advisor, but unlike bank/building soc. advisors, you will have to pay for their services.
If I was in your shoes I'd invest �3K in a mini ISA (which you can access in an emergency) and then stick the rest in a high interest notice account.
You can invest �3,000 in a mini cash ISA each year (if you invested �3K now you couldn't add to it until the new tax year in April 2008). The interest you earn from an ISA is tax free. There are various types of mini ISA - some allow instant access, some are notice accounts and of course interest rates vary from provider to provider. Any bank or building society who offers you free advice will only point you in the direction of a limited number of products. There are also maxi ISA's but these are linked to the stock market.
You could always go see a totally independent financial advisor, but unlike bank/building soc. advisors, you will have to pay for their services.
If I was in your shoes I'd invest �3K in a mini ISA (which you can access in an emergency) and then stick the rest in a high interest notice account.
I'm not a financial adviser so can't officially give you advice but I would give the banks a wide berth if I were you, especially if you're a novice investor as they will only recommend their own products which you may be too inexperienced to realise are not good buys.
If you are earning and are a taxpayer, I would certainly take advantage of your annual Cash ISA allowance of �3,000. for 2007/8, and perhaps put another �3,000 in each of the following following two tax years. Kent Reliance Building Society does not pay the highest interest rate but is a consistently reliable performer if you don't want to be chopping and changing and moving your money every year to get a better rate. Meanwhile, if you've invested �3,000 in a Cash ISA this tax year, I'd browse MoneyExpert.com which is is an excellent financial website for recommending high paying savings accounts in which you could invest the �7,000 remaining after buying your first cash ISA. If you want to invest some of your money for the longer term (where it will eventually hopefully grow faster than a cash savings account), go to the Hargeaves Lansdown financial website (h-l.co.uk) where their Research section will give you details of numerous funds in which you can invest for a stocks & shares ISA which is also tax free. But if the stockmarket frightens you, you might be better opting for an internet based high interest savings account like ICESAVE which I believe is currently paying 5.9% interest and guaranteed to be above the Base Rate until 2009. And I'd forget any large investment in Premium Bonds. They offer a very poor rate of return.
If you are earning and are a taxpayer, I would certainly take advantage of your annual Cash ISA allowance of �3,000. for 2007/8, and perhaps put another �3,000 in each of the following following two tax years. Kent Reliance Building Society does not pay the highest interest rate but is a consistently reliable performer if you don't want to be chopping and changing and moving your money every year to get a better rate. Meanwhile, if you've invested �3,000 in a Cash ISA this tax year, I'd browse MoneyExpert.com which is is an excellent financial website for recommending high paying savings accounts in which you could invest the �7,000 remaining after buying your first cash ISA. If you want to invest some of your money for the longer term (where it will eventually hopefully grow faster than a cash savings account), go to the Hargeaves Lansdown financial website (h-l.co.uk) where their Research section will give you details of numerous funds in which you can invest for a stocks & shares ISA which is also tax free. But if the stockmarket frightens you, you might be better opting for an internet based high interest savings account like ICESAVE which I believe is currently paying 5.9% interest and guaranteed to be above the Base Rate until 2009. And I'd forget any large investment in Premium Bonds. They offer a very poor rate of return.
You are not alone in wondering what to do. First stash it somewhere safe while you read all the interest rates and penalty clauses. Premium Bonds is not a good return on money, unless you are lucky, but it is safe. And you can have your money out at any time, quickly and no penalty.
Next decide what you want to do with the money. Dip into it for hols, car, this and that? If so it will disappear very quickly.
ISA s are a good investment - tax free, but check around for the best. rates. Are you willing to watch it and switch accounts often? If not, it may be an idea to get a bank to look after it for you. But not your local bank. For example Barclays have a personal management service in Peterborough, and they will care for it for you.
Don't trust anyone who volunteers to take care of your money, or invest it for you.
Good luck
Next decide what you want to do with the money. Dip into it for hols, car, this and that? If so it will disappear very quickly.
ISA s are a good investment - tax free, but check around for the best. rates. Are you willing to watch it and switch accounts often? If not, it may be an idea to get a bank to look after it for you. But not your local bank. For example Barclays have a personal management service in Peterborough, and they will care for it for you.
Don't trust anyone who volunteers to take care of your money, or invest it for you.
Good luck
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