I've got 5k in the bank - what should I do with it?

[CJ2010]

I've realised it's pointless just leaving it in the bank as it's losing value but what else should I do?

Any accountants / financial advisors out there who can help? TIA

If you've got a mortgage stick it in that? Or put it in a bond you can't access for xxxxxx years if you know you don't need it? Or put it in your mattress. Saw a thing in the FT that said more or less the same.

Do you need to be able to access it or can it be locked away for a while? And do you have any debts (excluding mortgage?)

No debts or mortgage (renting). Do you think a bond is the best thing to do?

Post Office is offering a good rate on 1 year bonds But all interest is rubbish at the moment.

Money Saving Expert gives info on ISAs which give tax free interest.

Stocks and Shares ISA with Hargreaves Lansdown.

ISA

If you can afford to commit it for 5 years then stock ISA. A special situations, UK small cap or BRIC fund would be a good punt.

Depends what your plans are, how long you want to put the money away for and your attitude to risk vs rewards.

• If you want a safe haven paying a lowish steady interest, tax free, then you can put £5340/year away in a Cash ISA. Many are operated online, offer instant access and you could get around 3% per year tax-free and have your money back any time you need it.
• If you're happy to tie your money up for a period of time there are Cash ISAs offering bonuses for long-term savings, again tax-free. There are also 1, 3 and 5 year bonds which are usually not tax-free but which can offer slightly more attractive rates. This is another safe option
• If you'd like to take more of a risk with your money (your investment could go down as well as up) and are happy to put it away for 10 years or so, then you could look at Stocks and Shares ISAs or Unit Trusts. This money buys 'units' in an investment fund, there are fees to pay to the fundholder and some funds perform better than others.

If the £5k is all you have in savings. I say either keep it there or put it in an ISA that allows easy access to the money. you can get ISAs very easily.

The reason I say this is that if it is all you have, you need to keep it for emergencies such as car breaks down, need something for the house.. etc etc etc...

The ideal situation is that you should have around 6 months worth of income easily available to you should the worst happen.

Stock market - I agree with Peggyblackett - I have a (tax free) shares ISA with TD Waterhouse. Great time to invest in the Stock market, as it's so low, but caveat that with the risk that it can go up and down.
DH has an account with Hargreaves Landsdown for the Emerging Markets fund and has done very well out of it (some up 50% on year).
Of course, these are the more risky investments, and it'll depend on your attitude to risk.

ISA, mortgage or pension.

DH is finance person. He says ISA.

Totally agree with Lafferty, you need an easily accessible safety fund. Look for the best deal you can get that fits that bill - an easy access cash ISA (maybe up to 1 month notice) is likely to be best bet.

If 5k is your total savings I would put it in an isa. If there is the slightest chance that you will lose your job in the next two years then I would do a cash isa as you can't risk losing the money in the stock market.

I have a very uncertain job so our savings cover 10 months of expenses including daycare. 6-8 months of living expenses not including daycare is what is recommended.

You could also try a Bonds & Gilts ISA which is less risky than Stocks & Shares but with potentially more gains than Cash.

Invest in silver or gold. Both are heavily on the rise. You stand to make a lot of money.