Investment Ideas

[aceyoung1]

Hi all, I have �400 (not much I know, but you've got to start somewhere) but I would like to do something with it. Im thinking of maybee buying Premium Bonds or putting it in a saveings account or maybee even getting an ISA. Does anyone have any helpful advise? Do I even have enough for an ISA? Thanks.

[TariqE]

�400 isn't going to get you a great deal- you're probably looking at a high interest account, maybe a notice account if you don't need immediate access.

Premiums bonds don't offer any returns at all unless you win prizes.

[Miss Zippy]

If you fancy a bit of a gamble but safe in the knowledge your capital is protected, then you could put some money in premium bonds.  The minimum investment in PB is �100.  Whilst your money is safe in PB, you earn no interest on it so the value of your money is effectively eroded away if you keep your money there for many years - unless of course, you're a winner then you might get a good return (assuming you win a bit more than a tenner). I'd suggest an ISA is your best bet - all your interest is tax free and there is no minimum investment limit, only a maximum - �3,000 per tax year (but this drops to �1,000 from next April).  You could put, say, �100 in PB and put �300 in an ISA.

[Miss Zippy]

P.S. an ISA is tax-efficient is you're a tax payer -you seem quite young so perhaps you're not a tax payer?  If you're not, then shop around for a savings account paying a good rate of interest - basically anything paying 5% or over is very good at the moment. Make sure you tell the bank/building society when you open the account that you don't pay tax and they will ask you to complete a form so interest on your savings is paid to you gross without deduction of tax. 

[aceyoung1]

Thanks Miss Zippy, thats very helpful. I think I will go for an ISA because I can t see me wining anything with so little. Do you know what bank offers the best ISA? or are they all the same?

P.s I do pay tax. Unfortunately

[sincrow6]

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