I appreciate this gets asked a lot, but despite trawling through thread after thread, I'm still not confident in what to do.

I have £50k, which is nothing compared to some STR funds on here, but represents 30% of a nice 3 bed where I live. I admit that this is mostly through luck rather than sound economic judgement, however I think I picked the right time to put the house on the Market (Aug '07), even if it did take 6 months to sell!

I intend to rent for a minimum of 12 months, but not forever. I consider myself very lucky to be in this position (compared to friends who don't understand that house prices can go down as well as up), but I now need advice in order to safeguard this position. After reading up on here, I find myself checking the price of Gold daily, but in the real world I cannot afford to lose this money. I would like to invest say £5-£10k in something a bit more interesting with higher yield, but have to consider I'm only investing for the short term.

I've never dealt with long term savings before - I'm familiar with the obligatory £3600 each into ISAs, and not to have more than £35k in any one banking institution, but where next?

Also, as your average twenty-somethings that couldn't resist some cheap credit, I'm afraid my OH has a 4.5k loan, and we both have around £1000 on % cards. Would it make sense to settle these debts out of the £50k pot? We should save at least £300/month by renting, and another £300 in loan/card payments, so could replenish the pot within a year?

Any advice gratefully appreciated!

Stick 30k on the Premium bonds, Money is safe, stand a chance of a big win and I find that you get back roughly the same as a savings account.
I know this is naff advice but as you said you were lucky to get that money, maybe it`s lucky money!!!

Failing that, I have stuck a wad in my ING 6month Bond at 6.5%. I have a wad in A@L 12 month bond @ 6.55% (Fingers crossed), I have also opened a Northern Rock tracker at 6% + the normal ISAs (His and Hers) + others e t c
Some smaller amounts I have chucked into my childrens High Interest accounts.
I am spreading a large STR fund all over the place, a pain in the ar5e I know but worth it in the end and I have peace of mind, Well I will do when my A&L Bond matures in September
Any large amounts are going in the wifes name to avoid too much tax

G`luck

Bosh

Pay the cedit card and any other debts of NOW

Did the same as you sold Chistmas last year

We had £120k equity

Put 100K in Co-op high interst account tied for 12 months 6.25% I think

20K have'nt decided yet

If you put your money in a high interest account, at least you know where you are.

Anything else "intersting" may be a bit of fun but who knows with the state of current world economy where to invest

My take is, we are heading for a deep recession. Banks will go bust and the economy will go pear shaped. It only appears stable at the moment because we have been living on debt for a good 15 years now. So, play safe.

Put £15k into NS&I inflation linked savings. Yes, I know that the rate has just dropped but that should tell you something. These savings have really jumped up recently. I also think Premium Bonds are a good idea to have a little fun whilst playing safe. On average the return is around £62 per month for a £30k stake but you expose yourself to the possibility of a bigger win. National Lottery odds are actually much better so if you must do an out and out gamble then go for a pound a week subscription for a year.

Fixed rate savings with a bank should be seen as high risk. Gold is controlled by a handful in the market and they get to know movements a good half hour plus before you ever will. That argument goes for all commodities. You will simply not have access to the best intelligence in a timely manner so stay out.

If it itches so much you can blow it really quickly with traded options!

I've just found this on where your lottery quid goes:

For every £1 spent on a National Lottery ticket, 28p goes to good causes.

* 50p goes towards prizes
* 12p goes to the Treasury in duty
* 5p goes to Lottery retailers
* 5p to the game operator (0.5p of this is profit, the remainder covers operating costs)


£1,000 earning 6% buys 60 tickets a year. £30 in prizes and £16.80 to good causes.


£1,000 in Premium Bonds has £36 in prizes.


So £16.80 for good causes against £6 extra in prizes.

1. Pay off debts - the interest they charge you far exceeds the interest paid by banks.
2. As you are <5y suggest NOT equities
3. Fill ISAs (as you have done)
4. If you are HRTpayers then check out NS&I
5. MoneySupermarket et al have best buys for savings. Suggest 6mo / 12mo?? fixed bond/rate. Rates are currently 6.8+
6. Whatever you do - lock it somewhere and don't leave in your current account - you will spend it otherwise! (speaks from some personal experience)