What to do with £40,000 with retirement approaching

elgindave

I'm not very good with money but here goes!!
I have 3 years to go till I retire at 65 and have £40,000 in the bank and put in another £200 each month. I calculate that in 3 years at 3.32% net in the RB of S that will total approx £47,400 after allowing for 3% inflation.
I tried calculating it out if my wife and I got £6,000 worth of cash ISAs each year over the 3 years left till I retire that the total interest on the ISAs plus the interest on the decreasing savings, after inflation, would come to a lot less than the straight savings account would give or are my calculations screwed up??
I did get some free advice from an accountant and she suggested some kind of with profits bond with Friends Provident but I don't trust investments!!
My company pension will knock me off the benefits scale too.
Anybody got some good ideas??
Thank you

Deemy

Try Cash ISA AND shares ISA's (for longer term), thats £7k each i.e. you and your wife so £14k per year tax year, 3 years and thats £42k... Treat yourself to a new car with the other £5k

Its March ! Act fast - or u lose this years ISA allowances !

and remember ISA's are TAX FREE - Which means..... TAX FREEE..... in otherwords - NO TAX... usually income does NOT have to be declared for tax purposes because they are TAX FREE