paulr

Basically i'm thinking of putting 3k spare cash into government equity bonds.
Its a 5 year deal where you get back 110% of any rise in the FTSE.No charges or fees.Only downside is you pay income tax on the proceeds,you cant put it in an ISA.
The worst you can do is get your money back after 5 years.

Is there any downside to these,i'm not a huge risk taker when it comes to the stcokmarket.My thinking is its better than sitting in an internet savings account and my cash isa allowance is all used up.

Any thoughts
(btw,of course the final decision is mine alone so feel free to comment)

paulr

Anyone?

Dan J

Your cash ISA allowance may be used up but don't forget in just a couple of weeks the tax year starts again which will enable you to invest your £3k straight into another cash ISA which should always be your first port of call for investing any spare cash. So just hold on to it until the 5th April and you'll have a fresh ISA allowance to use.

Hope this helps...

Dan.

paulr

Already got that covered.
I want some exposure to shares,without too much risk.

Dan J

Then invest in a stocks and shares ISA in which you can put up to £7000 but choose some fairly cautious funds to invest in whilst still getting the benefits of it being a tax free investment. The funds can be as risky or as cautious as you want them to be...

GreenMachine

I had a look at this too. picked up the brochure for NS&I. If you are only looking at £3K then some sort of low fee Tracker fund might be better - your gains would have to be more than c. £7.7K (may have gone up again now) before you paid any tax.

I might go for Premium bonds - chance to hit the jackpot!

paulr

Except none of those offer any guarentee.