I have £8,500 for twelve months, What to do with it?

alandjbaker

I have to spend £8,500 on renovation of my house and have been told I can have the work done now and pay 12 months later. So between now and then what's the best thing I can do with this cash to make it grow?

Any sugestions would be very much welcome

Thanks!

ReportInvestor

Hi Alan and welcome to the site ,

Internet
5.15% at ICICI Bank
4.85% at Cahoot, Bradford & Bingley [but is Cahoot now reducing to 4.55%?]

Fixed rate bond matures 31/5/07
5.1% Coventry BS

Others
4.86% Scottish Widows Instant Tracker
4.8% Scarborough BS Tracker - This guarantees min of 4.8% or the base rate whichever is higher .
4.75% Mansfield BS Postal Tracker 3 account - Guarantees 0.25% above base rate & has restrictions but you can take the lot out after 1 year no problem.

I quite like the last two's guarantees.

There are other more complex options, involving regular saver accounts, a feeder account plus a savings account - but this is the KISS route.

Good luck with the building project.

Milarky

There are other more complex options, involving regular saver accounts, a feeder account plus a savings account - but this is the KISS route.

Good luck with the building project.

'KISS' - 'Keep it simple, stupid'?

ReportInvestor

Yes, no offence intended or taken, I hope . I just personally prefer a less complex life.

But Alan might enjoy the challenge of draining the last drop of interest on his money, so by all means post alternatives so he can choose .

Chrismaths

Or if you have a flexible mortgage, overpay it to the tune of £8,500, then reborrow the money when you need it. That way you won't pay any tax on the 'interest'.

You know the saying, "£1 saved is a pound earned" - well, more accurately, £1 saved is worth:

£1.25 to a BR tax payer (if it's interest)
£1.67 to a HR tax payer (interest)
£1.49 to a BR tax payer (employment income)
£1.69 to a HR tax payer (employment income).

But the writers of the proverb went for snappiness over strict accuracy.