what to invest in?

The stock market is definitely worth a punt at the moment. Most shares are vastly discounted and you are unlikely to see better return anywhere else. Invest in bluechip stock that you can be 99% sure isn't going to go bust (Barclays, Xstrata, Shell) and provided you don't have to liquidate your investment (i.e. it doesn't matter if prices dip further within the next 12 months) you should be able to crystalise a profit vastly in excess of anything you will get from any savings product. You'll spend about £100 in transaction fees to invest in £5k of stock with most brokers. I tend to use Hargreaves Lansdown but there are plenty of others.
 
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