What to do with £3.5k

[ben_h100]

Hi all,

I'm due a bonus from work next month and apart from using some of it to clear the c/card and book a holiday, I'm looking to invest/save the rest. Should have between £3500 - £4000. Well be able to add around £100/month to this.

Is an annual increase of around 3% the best I can expect to get from a bog standard ISA/savings account? I should be able to leave it for a couple of years at least.

I've seen people on here talk about the Invesco Perp Accumalator - I appreciate I could lose on something such as this but are the chances more that it will increase?

Financially not been the best in the past but hoping this should get me back on track. I have a mortgage and my fixed rate ends in August (that's a whole different subject I guess!). I also have a loan and this is slowly whittling down.

[CountZero23]

It depends, the safest thing to do would be to may an over-payment on you're mortgage, it will be taken from the capital and won't be going on interest payments.

ISA is a good idea if you need relatively quick access to the cash.

Investing the cash is a good way of going, you can match the potential gains you want with the level of risk you are willing to take.

This is a great site to get you going.

http://www.fool.co.uk

[Lynch91]

HSBC regular savers account pays 4% for standard account holders, but if you have a premier account they pay 6%. First direct also do a regular saver at 6% was 8% although these accounts have a cap on the maximum you can pay in in one year.

[Kudos]

You'll do we'll to get 3% from an ISA (well not a 1yr one anyway)

[jonny70]

do oyu have 3-6 months of necessary expenditire set aside incase of something unexpected? (ie rent/mortgage, utility bills ,grocery bills and car costs for 3-6 months) that should be your first priority before any other saving/investing/paying off mortgage.

[spikeyhead]

What interest rate are you paying on your loan?

[Tino]

Would paying a lump sum off your mortgage put you in a more favourable category for getting a better mortgage rate when yours comes to an end?

[megaphone]

Pay off the loan.

[ben_h100]

Cheers for the replies everyone. I think I will pay off a chunk of my mortgage to get me into the <80% LTV zone (better rates available). I'll then use this saved money to overpay on my loan, and have a pot sitting to one side as an emergency fund.