Best way to put away £3000?

homerio · 28 Feb 2006 at 22:46

I'm 21 years old coming to the end of my university course, and my mum just paid me the £3000 that I've lent her over the last couple of years from my student loan. Now I plan to put this money away for the future. I have no credit card debt, £1200 in my regular bank account, £700 owed to me from the taxman from my summer job. The only debts I have is a student loan of around £6000 with interest charged at the rate of inflation.

I had a look at the motley fool website but could not make heads nor tails of it. I was thinking an isa would be the best way to save the money, though don't really know where to begin. I don't think I will need to touch the money for a while (with my current money in the bank and the money owed from tax) if that will help me with a higher rate of interest.

Thanks for your input

Luseac · 28 Feb 2006 at 22:48

Either an ISA (ring your bank who will give you details). Or premium bonds

Mad old tory · 28 Feb 2006 at 22:48

cash isa, i think the sundaytimes website has a list of the best accounts, just choose the one with the highest interest that suits you in terms of whether it's online only, the amount of notice etc...

PureAppleJuice · 28 Feb 2006 at 22:49

Go for premium bonds

panthro · 28 Feb 2006 at 22:49

I would put it all in an ISA. The only benefit the premium bonds have over the ISA is the possibility of winning the £1m prize. But you need a lot of luck and about £30k in there to be in with a decent chance.

Windle · 28 Feb 2006 at 22:50

Premium Bonds all the way

Luseac · 28 Feb 2006 at 22:52

Premium bonds can seriously pay off but you can go ages without winning anything. I had 2k in there for about 4 months and only won £50. My dad has the maxium in and often wins, last month he netted £400. It's all about how much you have in and with 3k the chances aren't that great tbh.

Psyk · 28 Feb 2006 at 22:53

Give it to me. I'll keep it safe for you

carvegio · 28 Feb 2006 at 23:09

I think isa is the best way to go. Check out moneysavingexpert.com it gives some good info and comparisons.

gord · 28 Feb 2006 at 23:19

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Graciouslessly,

Pundamondeo.

subject to blatant lies, dont send me your details

PinkPig · 28 Feb 2006 at 23:25

You can invest up to about £3000 a year in a cash ISA which is definately the best idea. Most banks and building societies will have an ISA account, best to hunt around a bit. Premium bonds might sound "exciting", but at the end of the day it's no different to gambling any other way, you're losing money (ie. your interest) in the hope of winning a big prize.

woodsy2k · 1 Mar 2006 at 00:00

If you want a put it in an ISA, you might find a building society gives better interest per year than a bank can offer.

Thats what i would do

Overload · 1 Mar 2006 at 00:13

homerio said:
...I don't think I will need to touch the money for a while...

How long were you thinking of not touching the money? If were talking 10 to 15+ then how about the FTSE100 - though this will, obviously, have an increased risk. ?
If were talking a few years then perhaps an ISA will be best for you.

At the end of the day it is your decision and I wouldn't want to be responsible for losing (should that happen) your money. Just an idea, thats all.

beh · 1 Mar 2006 at 00:57

ISA for sure. Minimal effort and risk. Investing in higher risk things isn't something to be taken lightly and with just 3 grand its not worth it anyway. You'd be very lucky to win something with Premium bonds either.

carpmaster · 1 Mar 2006 at 01:15

Just to clarify, as there are different types of ISA.........the one you want to put it in is called a "Mini Cash ISA".

The limit per tax year is £3000, and any interest is tax free. You can get 5% now which is the best rate currently on offer.

Burned_Alive · 1 Mar 2006 at 02:46

Agree on the cash ISA

rayer · 1 Mar 2006 at 07:52

or find a fruit machine !!!! hours of fun

lozza23_uk · 1 Mar 2006 at 07:54

10,000 shares in patientline.

SiHH · 1 Mar 2006 at 08:24

carpmaster said:
Just to clarify, as there are different types of ISA.........the one you want to put it in is called a "Mini Cash ISA".

The limit per tax year is £3000, and any interest is tax free. You can get 5% now which is the best rate currently on offer.

^^ what he said.

#Chri5# · 1 Mar 2006 at 08:33

carpmaster said:
Just to clarify, as there are different types of ISA.........the one you want to put it in is called a "Mini Cash ISA".

The limit per tax year is £3000, and any interest is tax free. You can get 5% now which is the best rate currently on offer.

Alliance & Leicester are offering 5.2% which includes a .7% bonus until April 2007 at present. As Tesco say, every little helps.