£7k to invest for 11 months... but where?

Alan_Cross · 13 February 2009 at 10:43PM

I have £7000 to put away for 11 months.

At end of Jan next year, I shall need it to apply against my situation when remortgaging.

Which provider/vehicle should I choose? Is there an obvious candidate for maximum return?

JimLad · 13 February 2009 at 11:09PM

You prolly want a fixed rate account for a set period. I beleive halifax have some for 9 months

Alan_Cross · 15 February 2009 at 11:51AM

Bumping to ask for any more thoughts.

darich · 15 February 2009 at 11:59AM

this may be scorned by some of the money savers here...but if it was me......
Interest rates are so low and there's talk of deflation rather than inflatoin so any gains in an account vwill be minimal. 5% for a year would be £35 less tax.

I'd buy premium bonds and forfeit the interest for the chance of winning more.

I realise it's not everyone's cup of tea but i've done it several times with holiday money prior to going on holiday (£900 for 9months won 2x£50, and again £750 for about 6months and won £50.)
I currently hold almost £5000(increasing every month) and have won 2x£50 since August.

Alan_Cross · 15 February 2009 at 12:03PM

That, Darich, is a seriously interesting idea... although it doesn't seem to stack up with things I've read lately about the chances of winning with premium bonds.

Maybe I'll give it a go.

P.S. I think you meant £350!

Alan_Cross · 15 February 2009 at 9:44PM

Rebump....

darich · 16 February 2009 at 12:38AM

Alan_Cross wrote: »

That, Darich, is a seriously interesting idea... although it doesn't seem to stack up with things I've read lately about the chances of winning with premium bonds.

Maybe I'll give it a go.

P.S. I think you meant £350!

You're right - i was out by a factor of 10....not sure how i managed that but your'e right - it is £350 assuming 5%.

It is a gamble doing the premium bonds - you may win nothing and cost yourself the £350 interest. I have been a bit luckier than average so far so while it maybe doesn't add up on average, it shows what is possible.

Worst case scenario is that you win nothing and get your 7k back.
Best case scenario is that you win 1m....or more realistically a few smaller prizes.

Alan_Cross · 17 February 2009 at 6:28PM

Can I please bump this again for any more thoughts...

luvpump · 17 February 2009 at 7:31PM

The options are VERY limited with a small amount over a small time span (in investment terms), With IR's so low either put it in a fixed rate bond or just buy a load of premium bonds & take a chance... Unless you want to try a risky punt on the stock market, thats really your only option..now let this thread drift into History please ..

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Phill_555 · 17 February 2009 at 8:08PM

I would do a FTSE100 tracker ISA...can't go much lower over the 11 months!?

What level of risk are you prepared to accept? If losing a quarter+ of this amount would be unacceptable then the premium bonds idea sounds a good punt