Investing £10k
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Discussion

Z064life

Original Poster:

1,926 posts

264 months

Monday 30th May 2011
quotequote all
Hi,

I have £10k to invest. I've worked for a few yrs after leaving uni and put £10k as part of a deposit on a house I now pay a mortgage on. Right now, I have savings of around £15k (I was also out of work for 7 months so I could have had a lot more etc).

Anyway, I am looking to invest the 10k somewhere, where would be best? My view on risk is in the middle (I don't want any risky options). Is an ISA best? If so, which one?

Also, is it worth overpaying on my mortgage (interest only, 3%)?

Thanks

onedsla

1,114 posts

272 months

Monday 30th May 2011
quotequote all
Z064life said:
(I don't want any risky options). Is an ISA best? If so, which one?
Thanks
http://www.nsandi.com/savings-index-linked-savings-certificates is worth a look - should get you 7% over the next year - apparently it's possible to withdraw after a year with only a very small penalty, which puts it way above anything else out there.

Cash ISA will get you around 3% right now, but building it up now will be beneficial in the future if and when interest rates climb back up.

d50cyx

292 posts

265 months

Tuesday 31st May 2011
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New to this forum, so hello everybody!

Few thoughts/ideas:

- why interest only on the mortgage? I get the impression that you've saved through surplus income, so I'd be looking to use some of that to start building up some capital in your property so that when you come to upgrade, you've got a more impressive deposit. I'm guessing you'd like to fully own your property one day (or least have the ability to)
- tradition states that you should have 2/3 months cash set aside (covering bills/mortgage/spending) in case you lose your job/can't work. Cash ISA is good (Santander 3.3% looks good)
- pension? Long term investment with tax advantages. Might be sensible to stick a bit in there and then make regular payments
- Stocks & Shares ISA for the rest. A medium term investment for something big (who knows, wedding/car/school fees, whatever takes your fancy)

It goes without saying, however, that if you've got any debts (aside from your student loan) you should pay those off before doing anything else.

Would be interested to learn what you decide.
Cheers.