What to do with 5k?

[Pulse]

I've got 5k spare cash just sat in my current account. What's the best way of making money on it?

My mortgage is 5.99%, so that seems the best bet, but I can't get that back out if the need arises... Any ideas?

Or, I could get rid of my car and have about 20-25k to play with, if that opens up new doors at all?

[WeirdNeville]

Have you got cash savings? If not I'd be tempted to put it in an ISA or the best savings account you can find to provide a safety net in these turbulent times. You have to accept that it won't grow and may actually lose out relative to inflation though.

Otherwise, making maximum allowable mortgage overpayments is a good idea, and it goes without saying you should clear any outstanding debt as a priority.

If you've got all those bases covered and are willing to accept a bit of risk, how about a unit trust investment?

[Four Cofffee]

I was tempted to use the cash I have to pay off my brother in laws car loan. He is paying 9.9%, and we could split that (in my favour) and both save/make a bit.

[v15ben]

I had £5k sat in my savings account gaining very little interest so bought a Clio 182. This may not be the most sound financial advice

Seriously though ISA for me, that's where the money from the sale of the 182 will go in the summer

[Pulse]

v15ben said:

I had £5k sat in my savings account gaining very little interest so bought a Clio 182. This may not be the most sound financial advice

Seriously though ISA for me, that's where the money from the sale of the 182 will go in the summer

I've already got the car (Z4 Coupe), so don't need anything more!

Thanks for the suggestions so far.

[Yeast Lord]

I'm expecting one last bounce in the pound before it all falls down, so I'm staying in cash until summer of next year.

[ringram]

Paying the mortgage off is equiv to 5.99% tax free. So its a no brainer.

[Pulse]

ringram said:

Paying the mortgage off is equiv to 5.99% tax free. So its a no brainer.

Yeah, that was my thought... Only issue being that I can't get it back if I need/want it.

[theboyfold]

Pulse said:

ringram said:

Paying the mortgage off is equiv to 5.99% tax free. So its a no brainer.

Yeah, that was my thought... Only issue being that I can't get it back if I need/want it.

Also check if you are allowed to make over payments and to what amount if that's the route you go down

[Pulse]

theboyfold said:

Pulse said:

ringram said:

Paying the mortgage off is equiv to 5.99% tax free. So its a no brainer.

Yeah, that was my thought... Only issue being that I can't get it back if I need/want it.

Also check if you are allowed to make over payments and to what amount if that's the route you go down

Definitely allowed. 10% per annum.

[jeff m]

It's amazing how much smoother life can be with a cash reserve.
Of course everybodies idea of a cash reserve is different, but if you are comfortable with two and a half. Then I would suggest putting the other half in a mutual fund and adding to it every month from salary (not from the remaining cash)
A few months ago while the pound was over 1.6 I would have suggested a US fund.
Perhaps a European fund now. Reasonably safe and slightly depressed at present due to Greece.

[Mattt]

Could look to switch to an offset mortgage, although 5k probably doesn't make it worthwhile in the short term!