If finding new ways to invest your money is on your list for 2020, you’ll want to take a look at what our experts recommend. 

Ways to invest your money short-term

If you’re looking to spend your investment within the next five years, we recommend a short-term investment. Whether you’re saving for a house deposit or a brand new car, here are some of the best ways to invest your money short-term.

Lifetime ISA

If you’re hoping to get on the property ladder soon, you’ll definitely want to invest in a Lifetime ISA in 2020. The Lifetime ISA is a government initiative designed to help first-time buyers secure their first home. What’s more, the government will even give you a completely free bonus of 25% (up to £33,000). Within five years, assuming you invest into a Cash Lifetime ISA, you could put in up to £20,000 and receive a £5,000 bonus from the government.

A Lifetime ISA can also be used to plan for your retirement, but it’s important to remember that you will be subject to a penalty if you use the money towards anything other than your first home or retirement.As well as this, you won’t be eligible for the 25% bonus.

Cash ISA savings accounts

If you’re not too concerned about interest rates, and would simply like somewhere to save your money for a few years time, then a savings account is a great place to start. Many Cash ISAs offer good interest rates for the first year, so it’s worth shopping around for the best deal. You’ll find plenty of withdrawal options, too, from easy-access accounts to fixed withdrawals (which often come with better interest rates). 

Investing your money long-term

Whether you’re saving for retirement or a holiday home abroad, you’ll want to consider these long-term investments for 2020.

Stocks and shares

Investing in the stock market is considered a long-term investment as it can take years to reap the rewards, but there is a much greater potential for returns (albeit with an element of risk). For this reason, stocks and shares are often popular with those saving for retirement.

However, it’s important to remember that every investment carries an element of risk and you should always seek the advice of an expert before investing in stocks. This could help to prevent a classic case of investment mis-selling.


If you have the time, patience and are willing to put in the effort, you could also consider investing in property in 2020. Buying a house, renovating it, and selling it on is one way to invest in property – or, if you prefer, you could invest your money in a Property ISA (which is essentially a Stocks and Shares ISA). You’ll need more money to invest if buying outright, but you’ll have much greater control over your investment.

How to safely invest your money

There is an element of risk when investing your money, but there are a few simple steps you can follow to reduce your risk.

  1. Don’t put all our eggs in one basket. Diversifying your investments will lower your risk.
  2. Don’t panic – it’s common for investments to fluctuate from time to time.
  3. If investing for the short-term, avoid stocks, shares and bonds.

Read our guide on how to protect yourself against bad investment advice.