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  • FIRST POST
    • kcam
    • By kcam 29th Nov 17, 4:17 PM
    • 7Posts
    • 1Thanks
    kcam
    Short term investment of ££££
    • #1
    • 29th Nov 17, 4:17 PM
    Short term investment of ££££ 29th Nov 17 at 4:17 PM
    Hello, I just completed a rented house sale and have quite a bit of money sitting in a Bank Account - a one time life event so I don't know what to do with it!? I plan to use £83,000 to pay off our mortgage April 2018 once our early redemption fees finish. We also plan to have our loft done in spring which will be £35,000. Please can you give me advice where to put £83,000 and £35,000 to make a bit of money - but be safe and accessible by next spring. Any advice really gratefully received, I have only ever had about £80 in the bank most days until today!!!
    Last edited by kcam; 29-11-2017 at 4:43 PM.
Page 1
    • Flobberchops
    • By Flobberchops 29th Nov 17, 4:49 PM
    • 596 Posts
    • 432 Thanks
    Flobberchops
    • #2
    • 29th Nov 17, 4:49 PM
    • #2
    • 29th Nov 17, 4:49 PM
    My first thought would be to put the lot in Premium Bonds (max £50k) and/or Income Bonds, both with NS&I, to have 100% treasury protection and due to the very short timescale involved. Even then I believe there's a month or two delay before your deposited money is entered into prize draws.

    If you have a child under 18 you could take the morally dubious route of opening children's savings accounts for the interest. For example Halifax Young Saver offers 2% on the first £20k, and Barclays Children's Instant Saver pays 1.75%.

    Not sure what other very short term options there are, but I'm sure others will have some interesting suggestions.
    I work for a UK bank, but any comments made on this forum are solely my personal opinion. Caveat Emptor!
    • xylophone
    • By xylophone 29th Nov 17, 4:53 PM
    • 23,682 Posts
    • 13,807 Thanks
    xylophone
    • #3
    • 29th Nov 17, 4:53 PM
    • #3
    • 29th Nov 17, 4:53 PM
    "Short term" and "investment" are usually incompatible bedfellows.

    You and your spouse might each look at a Tesco Internet Saver.

    This would be a simple option @ 1.35%.
    • westv
    • By westv 29th Nov 17, 5:03 PM
    • 4,374 Posts
    • 1,997 Thanks
    westv
    • #4
    • 29th Nov 17, 5:03 PM
    • #4
    • 29th Nov 17, 5:03 PM
    If you can get £100k of it (£50k each) in premium bonds by end of business tomorrow (probably unlikely I know) you'll be in time for the January draw.
    • ColdIron
    • By ColdIron 29th Nov 17, 5:06 PM
    • 3,679 Posts
    • 4,424 Thanks
    ColdIron
    • #5
    • 29th Nov 17, 5:06 PM
    • #5
    • 29th Nov 17, 5:06 PM
    I thought you had to wait a calendar month, January maybe, February more likely
    Last edited by ColdIron; 29-11-2017 at 5:08 PM.
    • westv
    • By westv 29th Nov 17, 5:07 PM
    • 4,374 Posts
    • 1,997 Thanks
    westv
    • #6
    • 29th Nov 17, 5:07 PM
    • #6
    • 29th Nov 17, 5:07 PM
    I thought you had to wait a calendar month, January more likely
    Originally posted by ColdIron
    You got me before I got to edit the post.
    • kcam
    • By kcam 29th Nov 17, 5:07 PM
    • 7 Posts
    • 1 Thanks
    kcam
    • #7
    • 29th Nov 17, 5:07 PM
    • #7
    • 29th Nov 17, 5:07 PM
    Please can you just briefly explain why premium bonds...is it that you don't get anything in interest, but might win something back, is that right? so, a safe place but might get something back? thanks for your help and time.
    Last edited by kcam; 29-11-2017 at 5:18 PM.
    • ColdIron
    • By ColdIron 29th Nov 17, 5:22 PM
    • 3,679 Posts
    • 4,424 Thanks
    ColdIron
    • #8
    • 29th Nov 17, 5:22 PM
    • #8
    • 29th Nov 17, 5:22 PM
    Maybe have a read of this

    https://www.moneysavingexpert.com/savings/premium-bonds
    • jimjames
    • By jimjames 29th Nov 17, 5:26 PM
    • 12,241 Posts
    • 10,778 Thanks
    jimjames
    • #9
    • 29th Nov 17, 5:26 PM
    • #9
    • 29th Nov 17, 5:26 PM
    , I have only ever had about £80 in the bank most days until today!!!
    Originally posted by kcam
    If this is truly the case then I'd strongly recommend that you open a current account or two so you can keep a portion of the money beyond next April as an emergency fund. You've probably been lucky if you have a rental property and only small amount of money available to cover any emergency or voids but that's luck. You could have been in the situation of a new boiler and no money to pay for it so having some easily accessible cash savings is a really good idea.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • kcam
    • By kcam 29th Nov 17, 5:39 PM
    • 7 Posts
    • 1 Thanks
    kcam
    If this is truly the case then I'd strongly recommend that you open a current account or two so you can keep a portion of the money beyond next April as an emergency fund. You've probably been lucky if you have a rental property and only small amount of money available to cover any emergency or voids but that's luck. You could have been in the situation of a new boiler and no money to pay for it so having some easily accessible cash savings is a really good idea.
    Originally posted by jimjames
    Just to clarify - was probably exaggerating a bit '£80 in account' but 2 young kids, work so mega childcare costs etc - not far off £80, left for us at end of month...v glad to finally have some money behind us, phew! Thanks for advice. Apprciated.
    • kcam
    • By kcam 29th Nov 17, 5:40 PM
    • 7 Posts
    • 1 Thanks
    kcam
    If this is truly the case then I'd strongly recommend that you open a current account or two so you can keep a portion of the money beyond next April as an emergency fund. You've probably been lucky if you have a rental property and only small amount of money available to cover any emergency or voids but that's luck. You could have been in the situation of a new boiler and no money to pay for it so having some easily accessible cash savings is a really good idea.
    Originally posted by jimjames
    Yes, you are right, I have another £30k as well from the sale, aside from the amount I originally posted about am putting that in different places, ISA's, current account etc - it is just these two lump sums £83,000 and £35,000 we don't know what to do with, as such a short time frame - need them next April - thank you though JimJames (above!)
    • Thrugelmir
    • By Thrugelmir 29th Nov 17, 5:48 PM
    • 56,257 Posts
    • 49,626 Thanks
    Thrugelmir
    Please can you just briefly explain why premium bonds...is it that you don't get anything in interest, but might win something back, is that right? so, a safe place but might get something back? thanks for your help and time.
    Originally posted by kcam
    For the short timescale that you are going to have the money. The interest isn't going to earn you a huge amount if you put it on deposit. At least with PB's there's the chance that you may have better than average luck.
    ďOpportunities come infrequently. When it rains gold, put out the bucket, not the thimbleĒ
    ― Warren Buffett
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