Recommendation wanted: How to invest ?3000 and the state of banking generally

[PeckhamRose]

I find myself in a rare situation - I don't earn much and don't have much in the way of savings, but I want the best for what I do have. However, I hate the way banks and building societies treat their customers and don't trust any of them.

I have accounts with Nationwide and the Co-operative bank, and now I have ?3,000 to invest. I don't have a mortgage (own my flat).

What should I do. I don't see I'll need it (the ?3,000) for at least 12 months.

What would you do. Discuss! And thanks for advice.

I've put this in Lounge because I hope to read a discussion and read people's experiences of how banks treat you.

[ChavWivaLawDegree]

I'll look after it for you.

[PeckhamRose]

Awww thanks! I was thinking of lending it to my magician friend, too.

SERIOUSLY tho....!

[macroban]

First take a view on whether 2009 will be a year of deflation or high inflation.

If the latter then the best return to be had will be with the advance purchase of dry and tinned foodstuffs.

[Peckhamgatecrasher]

Buy a beautiful painting or antique or piece of jewellry that you will love and enjoy. Hopefully it will appreciate and you may find you don't need the dosh in a year. If you do, flog it.

[PeckhamRose]

But it's all the money I have. I have nothing else. And I'm not a materialist in that I want to buy anything.

It's just that I do not know where best to invest the cash as far as the financial institutions are concerned.

[TheePope]

check moneysupermarket.com, still 12 month fixed rate bonds available at 5%, cash ISA's at 4.5% tax free but rate will probably go down...

or buy US dollars or a lump of gold or utility stocks or oil shares (they will come back up when oil runs out in 2020), or put it all on Blackburn to lose their next match.

or start your own Ponzi scheme.

Remember the value of your investment can go up and down or indeed disapear into alltogether. Hope that's cleared things up.

And nope I don't have a clue what to do with some modest savings now I actually have some for the first time ever!

[lard]

If it is all the money you have I would have thought it probably is wiser to choose something with instant access? Just in case you need it for something unforeseen. The difference of a percentage point or so would only be ?30 or so over the year.

[AcedOut]

Put it in a cash isa. Avoid stocks for at least a year!

[ontheedge]

Why not premium bonds you won't lose but you might win

[????]

If you're tax payer put it in the best Cash ISA rate you can find by using a couple of price comparison sites or you might get a better rate in a fixed bond.

Or bung it on a horse.....await my tip for the King George V1 on Boxing Day:))

[????]

Egg Cash ISA is the best on MSM or Kent Reliance Building Society if you're under 25

[RoosterMcLooster]

1. Stop worrying and put it into a cash ISA

OR

2. Put it in a Triodos account. (www.triodos.co.uk) Its an ethical bank and will put your money to good use

OR

3. Buy gold if you really can't stop worrying

[lard]

> OR

>

> 3. Buy gold if you really can't stop worrying

..and if you really really really can't stop worrying, buy tins of food. And a gun.

[Jeremy]

Don't buy foreign currency, commodities, oil stocks, or whatever that chap suggested. You may just as easily lose money, and I assume you're not in the business of taking such risks.

Your goal should be to match inflation if you can, with the minimum of risk. Premium bonds are not a good investment either, even if you consider the "fun" factor (i.e. not knowing whether your money is going to decrease in value before your eyes).

If you think you may need to access some of it, then maybe put half into a cash ISA, and half into 12 month bonds.

[matthew123]

The lowest risk approach IMO is identify what are the best 12 months savings accounts / bonds at the Co-op and Nationwide (with whom you currently bank), then have you money transferred directly into their best products so you do not miss out on 3 or 4 days interest which would happen moving your money to a new firm.

[????]

...er....I think you'll find there's now instant transfer and that Nationwide and Co-op aren't hugely competitive on rates....other than that, great advice

[ChavWivaLawDegree]

My co-op savings account is low but the 6% I used to get with citibank seems to have vanished!

I save in my kids Nationwide account tho, that's pretty good. About 5-6 % I think, well if they haven't cut it recently, that is.

[PeckhamRose]

Thanks SO much guys.

I did not mean to mislead about it being all I had; I meant it is all I have to save right now, everything else might be needed and I can do without seeing it for a year. I so like the idea of Premoum Bonds. May buy ?1000 of them. And a thousand lottery tickets.... Lots to think about though, so thanks everyone.

Did you hear the joke about the accountant who had three girlfriends he had to choose from? He gave them ten pounds each to see how they'd do... Maybe I should put the punchline in the joke thread.

Again, thanks.

[Mr Django Wisteria]

Buy a share of a syndicated horse. I'm not sure who to try on this one but a cousin of mine had great fun out of it.