Need to invest £149k for 6 months

chauncey

I was diagnosed with MS earlier this yr. My critical illness claim has been accepted and I will get £149k soon. My wife and I want to pay off the mortgage but an early repayment charge will apply until March next yr.

My question is other than topping up our ISAs what would you advise for the rest of the cash in order to get some interest? Most savings deals seem to require at least 12 months investment. I'm also conscious of the £50k limit in case the bank goes belly up.

I'd be interested to hear any ideas. Cheers

opinions4u

Easy access accounts. Take a look at www.moneyfacts.co.uk/savings for starters.

www.theaa.com/savings 2.8%

Tesco

ING

LTSB eSavings 2.6%

Halifax Web Saver Extra 2.6%-2.8%

Most accounts pay interest after 12 months, so check the terms and conditions to make sure that if you close early you don't lose any bonus. Alternatively, run the balance down to £1 and collect the interest at the end of the 12 months.

Are you able to make a part repayment without penalty against the mortgage? Many lenders will allow 10% of the debt to be cleared each year.

sabretoothtigger

Invest suggests stocks or bonds maybe, savings I guess is the obvious choice here pity nothing really pays much for that amount though I have heard of 6 month fixed rate accounts

For such a large amount would 20k of premium bonds be sensible at all or I guess not

If it was me I'd buy royal dutch shell shares, they go ex div this week. Absolutely awesome dividend on that amount, if you drive a car its a hedged bet

Hungerdunger

chauncey wrote: »

I'm also conscious of the £50k limit in case the bank goes belly up.

If you make it a joint account, that will increase the limit to £100k. In addition, at the end of the year the guaranteed amount will increase to the equivalent of €100k - around £83k per person.

chauncey

Thanks for suggestions.

Will prob pay off 9.9% overpymt, top up ISAs. Add to existing savings accounts. Open new account with the AA, and get £30k premium bonds.:j