What to do with a small lump of cash?
Discussion
Hi folks; some advice if possible?
I'm getting made redundant at the end of Feb and will be getting a modest payout when I leave. I've allocated some of it to frivolous things, but I want to bank £5,000 with a view to build on it for a future house deposit.
My situation is that I currently rent with my girlfriend and we'll be looking to buy a place in roughly 3 years time. The lump sum will be the start of a savings pot; which we will pay into monthly (roughly £400/500 a month).
I'm guessing an ISA might be the best bet; but I'm not sure what kind to go for. I'm risky by nature, so I am tempted by a Stocks and Shares ISA, but most of these stat that you really need to keep it going for 5 years.
Would I be better playing it safe and going with a fixed rate and just leaving it? Best rate seems to be about 2.5% for 3 years.
Maybe something else that I hadn't considered?
Thanks
I'm getting made redundant at the end of Feb and will be getting a modest payout when I leave. I've allocated some of it to frivolous things, but I want to bank £5,000 with a view to build on it for a future house deposit.
My situation is that I currently rent with my girlfriend and we'll be looking to buy a place in roughly 3 years time. The lump sum will be the start of a savings pot; which we will pay into monthly (roughly £400/500 a month).
I'm guessing an ISA might be the best bet; but I'm not sure what kind to go for. I'm risky by nature, so I am tempted by a Stocks and Shares ISA, but most of these stat that you really need to keep it going for 5 years.
Would I be better playing it safe and going with a fixed rate and just leaving it? Best rate seems to be about 2.5% for 3 years.
Maybe something else that I hadn't considered?
Thanks
condor said:
Have you got another job lined up? If not, you might need that money to fund a business venture.
I'd suggest sticking it in an easy access cash ISA straight away ( at end of Feb when you get it). New Isa year starts early April, gives you a bit of time to think and you haven't lost the previous years ISA allowance.
New job lined up and on a decent sized salary increase from my current place, so something has gone horribly, horribly wrong if I need access to it I'd suggest sticking it in an easy access cash ISA straight away ( at end of Feb when you get it). New Isa year starts early April, gives you a bit of time to think and you haven't lost the previous years ISA allowance.
Right, I've been doing some thinking and I definitely want to go down the stocks and shares ISA route. It just works for me and I'm starting to think that this may be more long term than my initial thought of 3 years.
I'm really tempted to go for United States Oil Fund as one of my long term investments; the issue is that Hargreaves Lansdown won't let me buy funds in it using their Stocks and Shares ISA.
Is this because it is a fund or can I get an ISA through another FSC that I can do it through?
I'm really tempted to go for United States Oil Fund as one of my long term investments; the issue is that Hargreaves Lansdown won't let me buy funds in it using their Stocks and Shares ISA.
Is this because it is a fund or can I get an ISA through another FSC that I can do it through?
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