£40,000 to Invest/Save.

former_student · 26 January 2009 at 2:54PM

Hi All

I have been doing a little bit of research however I am still struggling to find a suitable account.

I plan to purchase a house at the end of this year and I have transferred my ISA into the Julian Hodge bank. However I have 40,000 left that I want to use so that it will make some money at present, does anyone have any ideas.

Incidentally I have put some into Premium bonds however I don't want to invest anymore money into this.

Thanks.

gozomark · 26 January 2009 at 3:02PM

if you are using the money at the end of the year, you don't want investments

Primrose · 26 January 2009 at 3:18PM

For such a short term savings period you would seem to have little option but to open an easy access savings account with the best rate your can find. Hunt around on the Best Savings article. There might be one or two 6 month Fixed term savings bonds available. (Checkout moneysupermarket.com for all the fixed term offers). You could also protect £3600 of your balance from tax with another year's Cash ISA in April but at current rates it will not save you much tax. Steer clear of the stock market where experts normally recommend a five year investment period, especially with its current volatility.