Savings account/money in shares. What’s the best option?

[Blu3m00n91]

Looking to put some money into shares or savings account but not really clued up much on this and don’t just want to look at random articles on google. Any advice from anyone who does it?

 

[denislawsbackheel]

What’s your attitude to risk?
Shares - in the current climate risk losing the lot for a better return
Savings accounts 1 year fixes paying about 0.6% currently

To be honest if you can’t leave it for decades in shares put it in premium bonds.
At least there’s a chance of winning a million and it’s totally safe.

 

[EnzoMCFC]

Vegas - all on black of course

 

[ell]

I've moved quite a few quid of my savings into shares this year. I've made more money off dividends in 9months than I did on 5x that amount in a savings account ISA.

Currently I use freetrade, give me a shout if you want an invite link and we both get a free share.

 

[Tuearts right boot]

We have a stash in premium bonds, about 1% interest so they say. Had a few payouts, probably about £1k in total this last 12 months but we do have quite a few and it's about on par with their predictions. The bonus is you can get at the money if needs be with no penalties and there is no loss risk to you as it's guaranteed by the Government.....Plus you could have a chance of the biggy, £1million..We have some shares and some savings but the bonds make it a bit more touchy feely and something to sadly look forward to at the end of the month.

 

[Tommy_Catons_Perm]

Looking to put some money into shares or savings account but not really clued up much on this and don’t just want to look at random articles on google. Any advice from anyone who does it?

Depending on age, earnings and what it's for a SIPP could be good. Instant 25% return courtesy of HMRC. Or just a tracker ISA.Try Vanguard, Fidelity or Hargreaves Lansdown.

 

[Bluemanc100]

Looking to put some money into shares or savings account but not really clued up much on this and don’t just want to look at random articles on google. Any advice from anyone who does it?

Our liquid savings were doing nowt in the bank so I bought some premium bonds... Won £75 in December and £50 today... That's better than any bank at the minute but there are no guarantees

 

[journolud]

Looking to put some money into shares or savings account but not really clued up much on this and don’t just want to look at random articles on google. Any advice from anyone who does it?

Might depend how long you are looking at saving for and whether there is a goal in mind or just want to put some away. Funnily enough had the same conversation with my 21 year old last night- he is currently able to set some money aside each month but is looking to go to do his masters in September so will need that money then. If he puts it in savings then he is guaranteed to keep the same amount and with ,low inflation this shouldn't depreciate too much in real terms. He could put it in shares with the chance of much better returns but given the uncertainty over post brexit and the continuing Covid situation could lose a lot.

For example someone investing in UK shares this time last year would be in for a shock in a couple of months and losing a lot due to Covid, I don't think they have fully recovered those losses yet.

By shares you should be thinking funds really so that the risk is managed and spread out. It's interesting picking individual shares but risky, no matter how much research you might do.

If you are looking at saving anything like medium to long term (I'd say at least a year) then usually shares/ funds are going to outperform a savings account. Whatever you do make sure it is in an ISA.

There is a separate FTSE thread where you will find a lot more information, from ridiculous or chancy punts on individual shares to info about some funds that perform well. You aren't restricted to the UK markets if you invest in funds.

 

[denislawsbackheel]

If you choose to invest drip feed into the lowest cost index tracking ISA fund you can find.
Over the long term they will always outperform 99% of managed funds.

 

[flook]

medium to long term funds would be my recommendation, shorter term then premium bonds.

I have a fidelity ISA which lost about 15% early last year due to the covid crash, but has fully recovered and is now 10%+ up on where it was last March before the crash. Thats why it must be medium to long term, and you need to be able to hold your nerve if it goes pear shaped :)