what to do with £2000 - dont want to spend it

unwashed potato!

unwashed potato!

unwashed potato!

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Soon going to have £2000 saved up and all its doing at the momen is sitting in an Instant Account Saver giving me pretty much nothing from interest. I have no plans to spend the money for atleast 3 years as the idea was that it was going to pay for some uni fees if I get in.

I was thinking maybe of buying some shares in a company, but problem is I have no clue on anything to do with shares, and is there a huge risk on the company going broke and me loosing all the money. Only thing i do know is to not to put all my eggs into one basket.

Any better ways of storing money for a fews years? e.g. bonds, better savings accounts?
 
talk to your bank/building society.

Tell them they will lock it away for 3 years for you, expect 220 quid back if you are lucky. woot :rolleyes:
 
woot i read that as 200 quid, did you do a ninja edit?? ISA it and hurry up b4 April 5th :D
 
Just a question to people who know how the stock market works. Say if you spread X amount of money over say 15 companies in the FTSE 100 that generally make a profit over time and you think are unlikely to go broke anytime soon (BT group, Tesco etc..). Are you likely to always see a return on your money over say a 3 year period? If so, what would be the average return on your money? Would it be likely to outperform other methods of making your money work for you?
 
addy_010 said:
Sounds cool but i have no clue on what it is. Please explain
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A Certificate of Deposit (CD) is like a high interest savings account that you will get penalized for using during a predertermined amount of time. The interest rate usually go up if you buy a CD for a long period of time, ie a 3 year CD might have an extra .25% over a 2year

The bank basically takes your money, invests it into whatever they invest it into and than pays you for the use of your money. It is nice because it is a garunteed money maker, you cannot lose money on it.

Its great for money that you want to set aside and not have to think about but you want to gain interest. At the end of the CD term you can either roll your money over into another CD, maybe a shorter term if you want or just take your money and leave.


A mutual fund is basically a set of investments. You give the bank your money and they will invest it into a category of stocks. I have some money set aside in a medium risk mutual fund. That means that the risk of me losing money is higher than a low risk fund but it lower than a high risk fund.

The financial advisor I talked to said that the mutual fund is good for long term investment. Over a long period of time a mutual fund is very likely to gain value but during that time the value can go up and down.

If you have questions than find a bank with a helpful advisor but remember that it is YOUR money and dont let them sell you something you dont want.
 
sniffy said:
Just a question to people who know how the stock market works. Say if you spread X amount of money over say 15 companies in the FTSE 100 that generally make a profit over time and you think are unlikely to go broke anytime soon (BT group, Tesco etc..). Are you likely to always see a return on your money over say a 3 year period? If so, what would be the average return on your money? Would it be likely to outperform other methods of making your money work for you?
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I think you are talking about a mutual fund and it depends on what companies you invest in. You have your high risk companies, low risk and medium risk. It is often best to get a prospectus on the company you wnat to invest in and talk to a financial advisor if you have any questions.
 
Stiff_Cookie said:
The bank basically takes your money, invests it into whatever they invest it into and than pays you for the use of your money. It is nice because it is a garunteed money maker, you cannot lose money on it.
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That sounds like a bog standard bank account they give a fancy name and pander to schmucks. Seeing as that's exactly what every bank does with every single penny that passes through their system. What? You think they store it in a big room like Scrooge McDuck?

Ooo! Mr. BSc Business Studies. TELL ME MORE!
 
Stiff_Cookie said:
I think you are talking about a mutual fund and it depends on what companies you invest in. You have your high risk companies, low risk and medium risk. It is often best to get a prospectus on the company you wnat to invest in and talk to a financial advisor if you have any questions.
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Thanks.

I don't think I would invest money as the market seems quite fickle which would be dangerous if you don't know what you're doing.
 
ninja economist said:
That sounds like a bog standard bank account they give a fancy name and pander to schmucks. Seeing as that's exactly what every bank does with every single penny that passes through their system. What? You think they store it in a big room like Scrooge McDuck?

Ooo! Mr. BSc Business Studies. TELL ME MORE!
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It operates the same way as a savings account does but you tend to get a significantly larger interest rate.

If you want more information I suggest you speak to a financial advisor or your bank representative.

Also, I never took Business Studies.
 
sniffy said:
Thanks.

I don't think I would invest money as the market seems quite fickle which would be dangerous if you don't know what you're doing.
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Well, IMO they are nice because you can get some nice returns on your money. I dont dabble in trading or anything like that at the moment, IMO I would get too stressed out.
 
Stiff_Cookie said:
It operates the same way as a savings account does but you tend to get a significantly larger interest rate.

If you want more information I suggest you speak to a financial advisor or your bank representative.

Also, I never took Business Studies.
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I was only messing with ya rodeo man. Was just hoping you wern't one of the ones who fall for rubbish OTC financial products.
 
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