Best way of investing £1000

Nazca

Nazca

Nazca

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Just received a cheque from Fosters Laidback Legends for £1k.

Decided I don't want to spend it just yet so I want to invest it. Not really sure what the best way is.

I was thinking of an ISA , like Nationwide. Or Premium bonds, I don't really know how it works.

The stock market has been on my mind but again not really sure how exactly it works and I'm aware there are risks and it's taxable?

Or I could go to the casino and put it all on black?

Suggestions? Cheers :)
 
Play safe, stick it in and ISA, you can put upto £3k in the account per year. These are all tax free savings. It is good to start saving it up in the ISA so you have a big stockpile of tax free interest growing.

Otherwise blow it at casino or on a new toy.
 
Nazca said:
What risks are there with Premium Bonds?
Click to expand...

The opportunity cost of the guaranteed interest (~£60 a year on £1k) from a cash ISA. Also you will find that buying £60 of lottery tickets gives far better odds than putting £1k in Premium Bonds for a year (I worked this out some time ago).
 
Well you could play the stock market? Interesting time for it though: Average return per year ~ 11% - commision but + dividends. Although the ISA is the safest bet as long as your are paying tax on your savings (don't know your situation so can't say for sure...)
 
currently stock market is in massive fluctuations and is being flooded with money from us soon-ish.
It would not be the best time to invest as a lot of big companies are expecting to have lower than expected growth and so will drop in value, also cutting costs for advertising (look at google shares). Basically that would have to pan out in the long term with stock market and you pay to buy, and taxes on the sale. So you have to make big for it to ever be worthwhile, £1k probably is not enough to do this.

ISA = best option and you could always sit on it til you feel like blowing it later.
 
I have an Abbey Esaver giving me just over 6% back on monthly interest. No minimum commitments and stuff. Pretty good if you want to earn a little money with the luxury of having the money available anytime.
 
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