Best place for lump sum?

cheddar-caveman_2

When my Mother died a couple of years ago my wife and I put £55,000 in Premium Bonds bewteen us "for the time being" hoping it would get a decent "win". It hasn't and has realised just about nothing since then and we are trying to sort out where best to put his money where it will be safe, primarily, and earning us some money, tax free hopefully. Are ISA's the only options with their very poor interest rates?

Baldur

cheddar-caveman wrote: »

Are ISA's the only options with their very poor interest rates?

"very poor" - compared with Premium bonds?

There are Fixed Rate Cash ISAs available which offer up to around 6.25% for 1 year or 5.45% for 2 years. You would be able to subscribe up to £3,600 each if you have not already used your current tax year's ISA allowance.

NS&I also offer tax free products other than Premium Bonds.

cheddar-caveman_2

Yes I think that will have to be the option as we are grtting nothing from the bonds. However, even the ISA's only produce around £100/y from £3000 invested so one isn't going to get rich there either!

mrposhman

If you don't need the money in the near future, why not put the money into limited access bonds where you can get half decent returns. I think some of the rates were around 7% but that was before the rate cuts.

You won't get massive returns on this if your risk profile is low. If its low, the bonds would be a decent return, but as said above use your ISA allowances first.