1k to save?

[MissKrampus]

Hi,

Just came into a grand unexpectedly and was wondering what to do with it. Savings rates are really shite and I'm terrible with money generally. Premium bonds? DP sent me a link about investments but I think they're looking for a lot more than I have, also you get charged for the pleasure.

Thanks for any comments.

Stocks and shares ISA is a good way to invest with a modest amount.

I use an online company called a Nutmeg and you can download an app for your phone to keep track of your funds.

Do you already have some savings in case of broken white goods, car repairs, job loss etc?

If not, don't worry so much about the interest rate and save it as an emergency fund.

Premium bonds aren't a bad idea and as you say, interest rates are very low. You could get about 2% on cash and with £1k of PBs, you could go for years winning nothing, or you could win more than you would get in interest.

Stocks and Shares only really suitable if you already have some cash savings, can afford to lose some of the money and/or are happy to tie it up for years to get more chance of growth, and to mitigate the effect of charges and to not have to sell when the market is low. Otherwise stay away.

Do you have any debt?

Depressingly the best thing you can do with that money is pay down debt and "bank" it for later.

Thanks everyone.

Debt, just a student loan (which I'm currently paying off slowly through my salary but they keep bumping up the repaying threshold) and my mortgage.

I do have a little savings for a rainy day. But I'll be moving them from the savings account I have because the rate has plummeted .

Maybe I could put half in an ISA and half in premium bonds? Hmm.

*repayment, not repaying

You can get 3% on that with a tesco or tsb current account. That's the best available. Tesco better as no pay in required.