£10k - 1 year - best return?
Discussion
I have £10k in an ISA with HSBC at the moment that I wont be needing for about a year. ISA is only getting me about £6.70 a month interest - what's the best way to grow this money over the next year without too much risk? I don't plan on becoming a trader overnight so nothing too advanced!
Risk goes up with the likely reward. 1 Year is not long enough to ride the bumps of the stock market and given how high the FTSE is currently you will likely not make much and could end up getting less back. You will also have to think about the likely fees involved. You could look at a fund but again there will be fees and 1 year isn't long.
I think your best bet is to find the highest interest bearing account you can and pop it in there. Zero risk as you are covered by the FSCS in case the bank goes tits up.
I think your best bet is to find the highest interest bearing account you can and pop it in there. Zero risk as you are covered by the FSCS in case the bank goes tits up.
Consider keeping it in the bank on a decent fixed rate. 12 months is too short anyway for anyone being able to predict a credible return for you, and if you get off to a rocky start with McLabour or Blue-kip, followed by any repercussions associated with a Grexit, you'll be hard pressed to make up your losses in such a short time. The earnings frontiers for funds these past few years have shown a bias towards lower risk/conservative funds anyway, the premium that you're trying to achieve with higher risk funds hasn't invariably been worth it.
Zero risk = Santander 123 current account where you will get 3% as long as you earn £500PCM and have 2 direct debits. I've just moved a lump into one of these to start benefitting.
Bit of risk = I'd invest in some shares, e.g. Taylor Wimpeys shares are doing well. Maybe £3k into shares and the rest into a Santader account or something. All you need to do is register for an account with someone like Hargreaves Lansdown and it is as simple as clicking a few buttons if you haven't already registered and done this before. Nothing complicated and the likelihood is you will see much more than 2-3% in a year the way they are performing.
Bit of risk = I'd invest in some shares, e.g. Taylor Wimpeys shares are doing well. Maybe £3k into shares and the rest into a Santader account or something. All you need to do is register for an account with someone like Hargreaves Lansdown and it is as simple as clicking a few buttons if you haven't already registered and done this before. Nothing complicated and the likelihood is you will see much more than 2-3% in a year the way they are performing.
Dave350 said:
Zero risk = Santander 123 current account where you will get 3% as long as you earn £500PCM and have 2 direct debits. I've just moved a lump into one of these to start benefitting.
Bit of risk = I'd invest in some shares, e.g. Taylor Wimpeys shares are doing well. Maybe £3k into shares and the rest into a Santader account or something. All you need to do is register for an account with someone like Hargreaves Lansdown and it is as simple as clicking a few buttons if you haven't already registered and done this before. Nothing complicated and the likelihood is you will see much more than 2-3% in a year the way they are performing.
123 account all the way.Bit of risk = I'd invest in some shares, e.g. Taylor Wimpeys shares are doing well. Maybe £3k into shares and the rest into a Santader account or something. All you need to do is register for an account with someone like Hargreaves Lansdown and it is as simple as clicking a few buttons if you haven't already registered and done this before. Nothing complicated and the likelihood is you will see much more than 2-3% in a year the way they are performing.
Unless you have some expertise, trying to get a relatively short term gain out of the stock market is a fools errand, especially considering the current political situatuon. I'm guessing that the OP isn't or a stockbroker, or I doubt he'd be asking the question.
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