What account to choose?

[benny3008]

On my 18th Birthday last Tuesday, my Granny gave me a cheque for a large amount of money which my Grandad had been saving for me before he died in 2007. I know a little bit about interest etc... but still unsure as to what account would be best to put it all in to save it and accumulate as much interest as possible. Granny suggested a few options, bonds, ISA and normal savings accounts but I still want some advice as for what would be best for me, to give you an insight of my intentions, I don't intend to spend it any time soon, I don't want to run the risk of losing anything at all on it as my Grandad spent alot of time saving it for me and I basically just want it to be somewhere safe where I don't have to worry about it. can anyone give me some advice on different types of options I have. TIA

[gingejbee]

Depending on the amount you have, as much as possible into an ISA, because the interest is tax-free. See this link:

http://www.moneysavin...avings-without-tax#in

Then, the balance into a long-term (1, 2 or 3 year) bond at a bank or building society.

[237SJ]

Check out www.thisismoney.co.uk It`s the Daily Mail`s charts for the best rates according to how much risk you want and how you want to manage your account.

[jamesnan]

Premium Bonds have been fine for me and my family, and we often win.

[Graham-W]

Premium Bonds only pay an interest of 1.5%. If you don't win the interest is zero. If you do win the interest could be substantially higher.
Invested in an ISA you can get a guaranteed interest in excess of 3% tax free.
You pays your money, you takes your choice.

[twix123]

Unfortunately National Savings & Investments have just pulled the plug on their popular inflation linked savings certificates, but some banks are offering bonds paying inflation plus 1/2% if you invest a lump sum for 3 to 5 years. At least you wont lose any purchasing power of your money even though the nominal interest rate is only 1/2%, whereas anything paying less than 5% after tax currently loses future value.

[bednobs]

is there any chance you could give an indication on what amount you consider "large"? (you don't have to give the amount, just the region - hundreds, thoudands, tens of thousands? it will make a difference what you do with it,

[benny3008]

Hi, thanks for all your answers, the amount is just over a thousand pounds bednobs.