What to do with £10000???

[Sline]

Hi all,

Firstly im a spender not a saver, my younger sister has managed to save up £10000 and does not know where to put/invest it.

Would an isa or savings account be the way to go?


I personally have never had either so have no idea how they work. What return in £ could she expect say monthly?


Thanks in advance.

[black1]

well lets hope she dont give you the dosh !

[cuprabob]

ISA cash limit currently is £5,340 so assuming she doesn't have one currently she can open one up before April 6th and invest $5.340 and then on the 7th April invest the rest.

You should be able to get a rate around 3%

http://www.moneysupermarket.com/savings/cash-isas/

[greygoose]

Is she saving for any particular goal in the future? If she is planning to buy a house in a few years?

If she doesn't need the money soon then she should look at the stock market/unit trusts etc for growth and/or income, if she needs the cash soon then savings accounts (isas to avoid tax) would be the way to go. If she doesn't really care about it growing and fancies an unlikely punt on winning a million then premium bonds.

Otherwise lend her brother a few grand to buy an MX5 and hope he pays it back with interest .