Savings recommendations

[DrDreReturns]

We have got a couple of ISAs about to mature, total capital will be circa £25k. I've just had a look at moving the money and the interest rates are shit! Has anyone got any suggestions about how to invest the money? I'd be comfortable with locking it down for a couple of years but no longer than that. Thanks!

All interest rates on cash are now below headline inflation, let alone the real figure. You can scrape about 2%.

If you mean invest, as in risk, that is different and you need advice.

By 'maturing' I am assuming the money has been in a cash ISA for a given time frame, eg 1 or 2 years?

If you want to invest it instead of just leaving it in a low interest account, you could transfer it into a Stocks and shares ISA (keeping ISA status) and drip feed it into one or more funds, plus add more ISA money into them if you have spare cash, as this years allowance.

Or put say half into another cash ISA, half into an instant access account, and use the latter to drip feed into a S&S ISA, but this will then count as this year's ISA allowance.

There are a number of fund supermarkets you can use, most have a range of general funds, with varying risks, that you can pick. Pick more than one, drip feed money in monthly and you should gain over time, more than any interest paying cash ISA.

The recommendation is to invest for 5yrs minm but you can access at any time, and if the market does drop, by doing a monthly payment you will smooth out the peaks and troughs of the stock market. And if you do want to cash some out, you could choose to sell from funds that have increased the most, leaving others to grow more.

Yes the funds are in a two year cash ISA. The two years are up in August. I am naturally risk averse so have avoided investing in shares up to now but I may reconsider given the dire interest rates. It's hard to know if any Brexit economic turbulence will affect share performance though.

I'm not sure about stocks and shares but what about a santander 123 account, which gives interest on savings of up to £20k, there's a £5 fee but you get 1.5 % on savings and cash back on various direct debit (the cash back at least covers the £5 fee) and and then drip the surplus into a linked santander savers account which is £200 max per month @5% interest for 1yr. You can have up to three 123 accounts if you're in a couple (1 each and 1 joint, but still need to pay the fee on each) and a savings each.