Investment

[emmalee]

We are looking for the best way to invest � 10,000. We want the best interest rate we can get, whilst still be able to get at the cash if we need to, anyone got any advice? Thanks in advance. By the way it has to be no risk.

[Gnu]

I'd start by looking at mini cash ISAs. You can invest up to �3000 per person each financial year, so two of you could invest �6000 this year and then on the 6th April invest the rest. The interest is tax free, and you can normally withdraw some or all of the money quite easily.

Halifax Saver Direct, available on the internet, pays 5% and is consistently quite good for interest rates.

[WendyS]

I'd agree with Gnu. It has to be a ban/building society savings account of some kind as even one year bonds don't allow you to cash in early. You can withdraw your money any time from a mini cash ISA but do check first if you plan to leave it in longer, to the point that you want to shop around for a higher interest rate, as some of them have transfer penalties.

[BigMac]

Lots of mini Cash ISAs offer instant access, pay a reasonable interest rate and of course provide tax free gains.

For the balance, assuming you want to invest it before April 6th, there are several online savings accounts (Halifax is mentioned above) but ING Direct might be worth a look and I think Cahoot have a market leading interest rate as of today or yesterday.

But, with the requirement to "Know Your Customer" to prevent money-laundering, you may have to go over the proof of identity hurdles before you can open an account with a bank/institution other than your current one.

There are also two big provisos to consider: 1, do you have any debt (particularly store cards or credit cards)? If so, clear the debt as it costs you more than you will make on even the highest paying tax-free savings account; and 2. if you have a mortgage (also a debt, though not quite the same!) consider offsetting your �10k against the mortgage.

Finally, the investment option so often missing from an IFA's list is Premium Bonds. No interest, but capital is secure, and in lieu of interest you might win a million or another �10k. Not immediately accessible, like any of the ISA or direct accounts, but if you could tie it up for a few months it might be worth considering.

Wish I had your problem...

[emmalee]

Thanks for all your answers! We already have money tied up in mini ISA's, and we have to pay a penalty for any payment of capital on our mortgage, so the online accounts seem to be the best bet, and to be honest we never even thought of them! Thanks again!