Less than 12 months

michael_mcc

Hi,

I have a lump sum from a house sale and wanted advice on how to get the best return with NO RISK ( as this "fund" has to finance a divorce + wedding + honeymoon )

The timescale is 6 - 8 months and the amount is 40k.

Any ideas would be very welcome.

Michael

lisyloo

1) Put it in a cahoot account at 5.5%. Unfortunately you will have to pay tax. You could also use your cash ISA allowances but this will be 6K max if you have a spouse.

2) Put it in premium bonds. There is NO risk to your capital.
There is a risk that you might not win much, there is a chance you might get more and a small chance you'll get a lot more. This is a fairly safe "flutter" with no risk to your capital.

lisyloo

BTW - I think the prize fund return is something like 2.4% which is less than Cahoot. So if you have "average" luck then you will be worse off.
However there is of course an upside, i.e. a chance you might do better.

Depends on whether you want to take a risk with your return i.e. possibly get 0 rather than 5.5%.
There is still no risk to your original capital.