quick bit of financial advice needed

[white_van_man]

my child trust bond has just matured, and will pay out about £3500 im going to blow £500 of it on some new camera gear, where do i put the other £3000 pounds. Do i pay off a small bit of my mortgage and save myself £20 a month on that or do i stick it in a savings accound someware. If i save it i want the money locked away so its not easily accesable, but not impossible to get hold of if i have an emaergancy and need the money.

Thanks for you help
WVM

[tinman0]

depends whether you want rainy day money to be honest.

there are some deals out there for 5.5% in a savings account for small amounts of cash (eg £3k). alliance and leicester.

but if you want the cold hard facts of finance, then i would think your mortgage payments are probably higher than 5.5% so it would be best to pay off a small amount if you can and only if there are no charges associated with it.

[puggit]

£3000 = maximum amount for a tax-free ISA/TESSA/whatever the goverment call it this year

[simpo two]

tinman0 said:

but if you want the cold hard facts of finance, then i would think your mortgage payments are probably higher than 5.5% so it would be best to pay off a small amount if you can and only if there are no charges associated with it.

Yep, laws of financial physics dictate that rates are higher for borrowers than savers. If your mortgage has a fair while to run, I'd consider paying some off as it will save you lots in the long run. Boring but sensible

[CommanderJameson]

Pay off the highest-interest loan you have?

[condor]

Buy premium bonds always the chance you might win a big prize if you're lucky - and easy to forget about until you really need some money ( takes about 2 weeks to cash them in and get a return cheque)

[pmanson]

condor said:

Buy premium bonds always the chance you might win a big prize if you're lucky - and easy to forget about until you really need some money ( takes about 2 weeks to cash them in and get a return cheque)

Yep do that!

[white_van_man]

i hadnt thought about premium bonds i will look into them

[gorvid]

Go for Premium Bonds...
I bought 24000 in the hope of landing a win each month (according to the odds)and so far I have done exactly that, minimum win is 50 but 1000000 is possible, it takes about 8 days to cash them in. I reccomend you go for the 're-invest your winnings' option. That way your winnings is converted straight into more bonds...