£25k to save - ideas?

amethystcash

I'd appreciate some advice regarding finding a home for a lump sum of £25k. We (DH and I) both have our ISA limits covered for this year and each already have regular savings and an emergency fund set up. We also don't need to put the money towards either a mortgage or clearing debts.

This is a sum of money that would be put away for a longer period of time. We don't want to invest as we're not willing to take on risk at this point. We also don't mind not having access to the money and don't need to have monthly income from it.

We've thought about NS&I index-linked savings certificates and also fixed rate eBonds but don't have any ideas beyond that. Still a bit unsure about tying the money up in case some miracle happens and interest rates start to go back up again.

Any suggestions you could offer would be really appreciated. Thanks.

zack1978

Have you thought about premium bonds, They are risk free, and you can get your money back any time, with a chance to win some money

My mom brought £30,000 (mutiples of £5000) in November 2008, she got £50 in December, and £300 this month (better than any banks giving at the moment)

http://www.nsandi.com/products/pb/index.jsp

sabretoothtigger

Thats like 7% so she should quit while shes ahead because the real return is below 2% on average I think

Does seem reasonable for short periods I guess, its minimum a month?

zack1978

sabretoothtigger wrote: »

Thats like 7% so she should quit while shes ahead because the real return is below 2% on average I think

Does seem reasonable for short periods I guess, its minimum a month?

I was suprised my self, as my £8000 only netted me £250 last year

It could be that more people are feeling the credit cruch and have cashed theirs in, so theres more chances of the numbers coming up, or the more bonds you have the more chances you have of winning more prizes

Lokolo

Premium Bonds have an average return of 1.8%.... go for them if you really want.

amethystcash

We did think about premium bonds but figured it would be better to have the index linked savings certificate than hope for the premium bond to come up. Does anyone have any other thoughts apart from NS&I products?