Best way to invest 6K?

Energize said:
The certificates don't seem too appealing. The interest is lower than ISA's and if interest/inflation rates change for the worse I can just take all my money out of the ISA and put it elsewhere anyway.
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RPI's currently around 4.2%, add on the 1.35% and the return is 5.55%. Sure you can get more on a cash ISA, but only for £3k per year. What do you do with savings over £3k?
 
The return on premium bonds isn't that exciting.

Just do the ISA, either two mini-cash ISAs on each side of April 5th or a combination of mini-cash ISA and stocks and shares ISA (£3000 in cash, £3000 in shares).
 
the best rate you can get for 3k risk free will be a fixed term cash isa. I've seen rates as high as 6.5% for 2 years

the other 3k stick it in a high interst saving account for 4/5 months then invest in another cash isa
 
markyp23 said:
The return on premium bonds isn't that exciting.

Just do the ISA, either two mini-cash ISAs on each side of April 5th or a combination of mini-cash ISA and stocks and shares ISA (£3000 in cash, £3000 in shares).
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i don't think it has to be shares i thnk you could invest the 3k in something like a low risk bond or cash fund it would probably yeild about the same return as the cash isa and be tax free
 
markyp23 said:
Just do the ISA, either two mini-cash ISAs on each side of April 5th or a combination of mini-cash ISA and stocks and shares ISA (£3000 in cash, £3000 in shares).
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I was just about to post this.

Most people only think of cash ISAs, but you can do stocks and shares too. The 3k limit only applies to the cash bit. You can have the balance in stocks and shares.

The rules on ISAs are changing soon though, so probably worth asking a proper financial advisor.
 
vonhelmet said:
I was just about to post this.

Most people only think of cash ISAs, but you can do stocks and shares too. The 3k limit only applies to the cash bit. You can have the balance in stocks and shares.

The rules on ISAs are changing soon though, so probably worth asking a proper financial advisor.
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I don't know about what the new rules will be (I didn't even know there were going to be new rules!) but the current limits are £3000 in the cash ISA and £4000 in the stocks and shares ISA, giving a £7000 total per year.

Don't want to appear to be correcting you (as you haven't said anything to be corrected), just adding on to my previous post :)
 
Energize said:
Any reccomendations on which banks? Egg do a 6.05% online ISA, so I could transfer 3k from my account now, and another 3k in april?
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Yep, 3k now and 3.6k from 6th(?) of April.
Kent Reliance offer a reasonable ISA (6.21%) and you stand a fair chance of carpet-bagging with them.
 
markyp23 said:
I don't know about what the new rules will be (I didn't even know there were going to be new rules!) but the current limits are £3000 in the cash ISA and £4000 in the stocks and shares ISA, giving a £7000 total per year.

Don't want to appear to be correcting you (as you haven't said anything to be corrected), just adding on to my previous post :)
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I think the new rules are going to be more flexible, so you have anything up to 3k in cash, and the balance up to a total of 7k in stocks and shares, or it might even be 10k total. So you could have 2k in cash and 5k in stocks and shares (or 8k if the limit is going up to 10k, whatever).

I think there was something about it in the pre-budget report, but we await the final legislation on it in the finance act.
 
markyp23 said:
The return on premium bonds isn't that exciting.
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Depends on your luck ,with 6k you have 6000 chances each month of winning £100000 plus all the smaller draws ,the best bit you get your 6k back when you want ,you wont get that with any other investment .
I would say thats more exciting ;)
 
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I would bang it in an ISA.

You could open a account in the current year 2006/2007 and get 3k in before the end of March and then you could add the rest in April.

Also they are increasing the upper limit to £3400 for the 2007/08 term.

Here is a good site for comparing ISA accounts.

http://www.moneysavingexpert.com/savings/best-cash-isa

Watch out for headline grabbing interest rates such as 8% as these are to fool you as they are genrally short term introductiry rates e.g for the first 3
months and then drop! Check the overall rate that you will ger for the whole term!

Also if you do not need access to your cash for 12 moths it may be worth popping some into the fixed term investment bond, again however some of these give lower rates of interest than a good internet bank account such as ICICI.

Site for comparing saving accounts

http://www.fool.co.uk/savings/compare-savings-accounts.aspx

Here is an example of a bond

http://www.bradford-bingley.co.uk/savings/product/1-year-fixed-rate-bond-issue11.asp

This is a good bond, however you may not get the best return :p

jamesbondii0.jpg
 
Remember how you invest will also depend on how quickly you want to be able to access the money.

Risk free and instant access is not as easy as it seems.
 
I don't need quick access, I'll likely be saving it at least 3 years. Adding another 3K in scholarship money over that period.
 
That makes it much easier. I actually agree with Clv101's suggestion in that case. Especially given how low inflation is relatively speaking, it's not likely to drop much, as there isn't the room to do so, but it could rise, and so a guaranteed amount above inflation is not a bad thing at all.
 
Put shares into a growing company, i would go for Santander/Abbey National.

Wishout a doubt, they are growing, and having an inside view on the intranet, they are just getting huge, shares are always high.
 
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