Investing some spare money

When do you think you might need this money?

Less than 5 years, find the best interest paying current account. You may find there will be restrictions such as pay in £X each month so check these carefully.

Longer term? Think about putting the money into a stocks and shares ISA, I personally buy units in Vanguard Lifestrategy 80 but I would only recommend doing this if you don't need the money for around 10 years or more. Obviously your money is at risk and the value could go down.

So I should have several thousands lying around. My student account only gives interest up to £2000, so any cash above that will just be lying there and depreciating!

What should I do? Should I put my money in an ISA? There are several types but I am not entirely sure what the differences are. I have considered a stocks and shares ISA but not sure which provider I should go with and the time-scales associated with them!

I have searched for a few stocks and shares ISAs. Is Hargreaves Lansdown any good? Heard of the high charges but good service.

I personally use H&L because their S&S ISA charges a flat % fee for fund investments rather than per-trade fees which makes it good for regular but small monthly investing. With H&L you are paying a premium for the newbie-friendly interface and high level of customer service though.

If you're talking about Hargreaves Lansdown, they do charge per transaction, not by %, unless you're ordering by phone.

http://www.hl.co.uk/shares/share-dealing/dealing-charges

I invest in funds, not individual shares. An approach I'd recommend to any new investors.

The charge applies to all dealing if I'm not mistaken. The management charge, is done in percent, capping out at 50 or something.

You are mistaken

There is no transaction charge for investing in funds within the H&L ISA

I invest in funds, not individual shares. An approach I'd recommend to any new investors. These don't have transaction fees.

You don't seem to know much about investing.

Firstly they are called ordinary shares, not normal shares.

Secondly, what is H&L? Do you mean Hargreaves Lansdown (HL)?

Please don't give advice when you don't know much yourself.

Ah sorry didn't see the ISA part. My bad.

No worries! Their fees (like most providers) are anything but clear.

I made an account with HL just now. I am planning to invest monthly, would investing in funds be better because investing in shares would lead to transaction costs every time.

Why would you be investing monthly if your funds are coming from Student Finance? :s

When are you likely to need the money? Assuming you've no need of it whilst at Uni the assumption would be for a house deposit soon after graduating?

In which case; I wouldnt invest it in anything. Typically the timescales for normal shares investments are at a minimum 5 years, so you'd need the money sooner than this.

We're not talking huge amounts of money (although when youre young a few £k will look like alot.. it really isnt) so I'd not take the risk with such a small amount and short timespans.

I made an account with HL just now. I am planning to invest monthly, would investing in funds be better because investing in shares would lead to transaction costs every time.