The Lemon Fool

I would like it to be low effort, and able to take it out in 2 or three years when I am in university what would the best way to invest my money?

Perhaps something like a fixed rate bond where you deposit the money and leave it for the required time period. Just make sure you do not change your mind! If you do go down this route, maybe consider breaking the investment up into several sums (£4k each perhaps) such that IF you really needed access to some money you only need to cash in some of it (check the terms and conditions to see if they allow early redemptions with interest loss).

https://www.raisin.co.uk/savings-accoun ... EMQAvD_BwE



There is a two year fixed rate bond with Investec at a rate of 4.46% which will yield £1427 of interest when it matures. Note, the account has the backing of the Financial Services Compensation Scheme (FSCS) which covers you up to £85k of losses if the company were to go into receivership. Do not put any money with a company that does not have the backing of the FSCS. You might not have to pay any tax on this sum depending on your earnings.

You could also consider Premium Bonds - the downside is that the total amount of money that you have accrued 2 years from now might be a lot less than £1427 or..if you were very very very (etc.) a lot more! Whatever winnings you receive though are tax free.

Investing in Shares when you know you will need the money and cannot afford to lose it is, in my mind, a definite no-no!.

ninkynonky wrote:I would like it to be low effort, and able to take it out in 2 or three years when I am in university what would the best way to invest my money?

I wouldn't. On a 2-3 year view I would suggest saving not investing (unless you are comfortable with a potential capital loss).

dealtn wrote:

ninkynonky wrote:I would like it to be low effort, and able to take it out in 2 or three years when I am in university what would the best way to invest my money?

I wouldn't. On a 2-3 year view I would suggest saving not investing (unless you are comfortable with a potential capital loss).

You mean relative to inflation? Yeah, but better some return than none at all.
So I agree with monabri.
It also has the benefit of tucking the capital away from spending temptation for a while.

V8

I'll answer your question with another question or several:-

1. What do you see yourself doing with the £16,000 in 2-3 years time?
2. Is that £16,000 a once in a lifetime inheritance, or maturing savings plan? Or is it a generous parent saying "I've had a good year" which might happen again in the future?
3. Do you see yourself studying drama? Or medicine? Or law? Because that will affect how quickly you might be able to replace that £16,000.

On the first question - if it is to pay rent, or tuition fees or something unavoidable of that nature you probably need to be looking at saving, as others have suggested, rather than investing, where your £16,000 is not guaranteed, never mind any actual gains.

If it is to buy a car, or pay for a gap year, or your "going out" budget then I would suggest that you could ignore the commonly offered advice "Only invest with a 5 year timescale". Because for those things it doesn't matter so much if your outcome is £12,000 or £20,000, or even more.

Zero effort - a world equity tracker. But most people here are interested in putting in a little bit of time to make their own decisions. And then we see the success or otherwise of our choices.

Good luck whatever you decide.