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where is the best place to "invest" a few thousand?

(8 Posts)
studentmum4latte Mon 19-Sep-16 10:05:33

I got my student loan today and I plan to put it away (but will need access if need be) for now. I have about £5000 now and more coming in the year (maybe another 5-10? I can't remember plus some I will need to use upfront before saving )

I was thinking something like an ISA or premium bonds. Making interest isn't an issue, just I don't think my savings account is very good at all, plus I want it "away" from my accounts (because I can't trust myself to dip in as I have mobile access to my accounts and can transfer within seconds between them).

Is there is limit on premium bonds? Can I lose money? Is it easy? What do I need to know? Is the money locked? I don't mind having to wait a little to release it as I should know in advance when I will need it but I don't want to have to wait more than a week or two ideally.

Anyone know more than me?

Thanks grin

Cindy34 Mon 19-Sep-16 13:51:02

Premium bonds may be useful, if you don't want interest. There is a max limit but I think it is over £40k.

You buy the bond in minimum of £100 lots, and they are not eligible to win a prize until you have held them for a month. You can add easily via debit card, you can also withdraw - not sure how quick that is but expect it takes less than a week.

specialsubject Mon 19-Sep-16 19:19:29

Remember that inflation is actually 2% or more so your money loses value at that rate.

Why turn down interest? Open one of the interest paying current accounts and get a bit back. Tsb pay 5% on 2k and you get a little cashback too.

You can learn not to dip in and waste - as a student you.have to.

BarbaraofSeville Tue 20-Sep-16 09:35:12

As well as TSB there is Lloyds that pays 4% on £4-5k but you need to pay in £1500 pm - you can do this manually from another account or by a cycling standing order - the money doesn't have to stay in there at all. You also get a reward each year - 6 cinema tickets or a magazine subscription, there may be others.

There is also a Tesco current account that pays 3% on upto £3k that doesn't require anything else to be paid in.

Maybe split with premium bonds - you may get next to nothing in prizes, but you might be lucky. They only average about 1% though, so unless you get a big prize, and the odds are very low, you will be better just saving the money. If you don't write down the internet banking details, it is easy to forget them so not easy to spend the money.

Look on Moneysavingexpert - all the info there about maximising interest.

suzietonbridge Thu 22-Sep-16 20:53:54

Santander current a/c123 pays 3% int but you have to have £1000 being paid in each month and at least 2 direct debits going out. As Barbara said, the 1k does not need to stay in there, you just need to devise a way of taking it out into another a/c (not a Santander a/c) to be able to pay back the next month

specialsubject Thu 22-Sep-16 21:00:07

Rate drops to 1.5% soon - below real inflation.

Madbengalmum Fri 23-Sep-16 17:46:15

Santander is still better than any other current account for up to 20k though. I know there are anomalies like lloyds, but these offers will be soon withdrawn due to interest rates being lowered.

specialsubject Fri 23-Sep-16 21:16:17

Sadly yes. Carney will ensure that savings rates are all effectively negative soon.

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