Year 12s: what will be the first way you research your future options? >>

Investing for uni, stocks and shares isa

I'm 18 years old and am planning on going to university next year. I have saved up £2500 through a job and I am considering investing this in a stocks and shares isa. If anyone reading this has done something like this or knows about investing in stocks and shares is this a good idea? Will my money likely be safe? If so where would be the best place to invest, Largreaves landsdown? Vanguard? Any help would be appreciated. Edit: this is money I am going to need to have access to in uni

Reply 1

Reality Check

Original post by chrismanning0711

Investing is really for long-term (5-10 years minimum) and for rather larger amounts that what you currently have (this isn't to take away from the achievement of saving this money up through employment :smile:

). Investments aren't for accessing regularly or early, which is what you're proposing to do.

You need to look at savings accounts, rather than investments. Interest rates are piss poor at the moment, but some of the best rates can still be found, ironically, in current accounts. For instance, you could earn 5% for a year (absolutely market beating) on amounts up to £2500 in a Nationwide FlexDirect account, so long as you are able to deposit £1000 monthly (you can 'cycle' this money between a non Nationwide account and your FlexDirect account if necessary). You won't get anywhere near 5% in a run-of-the mill instant-access savings account. I highly recommend this for the amount you have, as it's exactly the maximum amount on which this rate is paid! You'll need to pass a credit check for this account (as with all current accounts) but it's not a particularly harsh one, particularly if you're not looking for any borrowing facility.

Reply 2

ch0c0h01ic

Original post by chrismanning0711

I'm 18 years old and am planning on going to university next year. ... Edit: this is money I am going to need to have access to in uni

Stick to high interest regular savings accounts (up to 2.75% interest RISK FREE) or current accounts (up to 5% interest RISK FREE).

I am considering investing this in a stocks and shares isa. If anyone reading this has done something like this or knows about investing in stocks and shares is this a good idea? Will my money likely be safe? If so where would be the best place to invest, Largreaves landsdown? Vanguard? Any help would be appreciated.

Investments can be incredibly volatile, anywhere from +25% to -25% in the last 5-10 years, and more if you look further into the past. That is not what you want if you need the money in the short term.

Save your investments for when you are saving for the long term (ie; minimum of 5-10 years) and when you have sufficient emergency savings (eg; 3-6 months of living expenses) to prevent you having to sell your investments at a significant loss to meet unforeseen expenses.