Where should I put my money what I need within 2-10 years?

Looking for a better place to put my hard earned money for children's uni expenses and my retirement, all within 2-10 years. Where can you recommend?

Hi there

Without getting more information about your situation, how much money we're talking about and what you currently have in place it's hard to give a definitive answer, but there are some options for you to consider.

Money that you'll need in less than 5 years time should usually be SAVED - so held in a cash-based account at a bank / building society so that its value is guaranteed and you have access to it when you need it. Interest rates vary, and sometimes you get a better rate in a current account rather than a savings account.

Look online for a savings best-buy table and look for something that is instant access or doesn't have massive penalties to withdraw the money. You'll probably need to move the money to another provider at the end of the year when the promotional rate ends so as to not end up on their default (tiny) interest rate.
Some people like to keep money in NS&I premium bonds as an alternative - you may win a prize in the monthly draw of between £25 and £1million - and you'd only need one prize every 2-3 years to have got more than the interest you'd have got in a savings account! You can withdraw the money easily when you need it, by bank transfer back to your nominated bank account. You can pay in lump sums or monthly and can hold a maximum of £50,000 per person in Premium Bonds.

Money that you won't need for more than 5 years would normally be INVESTED so that you can beat inflation and get some growth on your money. You'd usually choose a fund based on the level of risk you're prepared to take and hold it in either an ISA or Pension wrapper depending on your needs and wishes.

Pension contributions benefit from tax relief - but you'll pay tax on some of the money when you come to draw on it. You're limited to paying in £40,000 into a pension each year (or 100% of your salary / relevant earnings if less).

There is no tax relief on ISA contributions but any money in the future you withdraw has no further tax to pay. You can invest a maximum of £20,000 a year into an ISA.

The value of investments goes up and down over the short-term (volatility) but tends to increase over the longer term - which is why money to be invested is for medium / longer term outlook - and remember there are no guarantees, you may get less than you put in...

A financial adviser can help you create a plan for the future (at a cost) or you can self-select and use an online platform to hold your investments.

Hope that helps

Claire