house sale proceeds - where do i put it???

CROOKEDJO

We are about to get £90k from the sale of our house which I dont know what to do with.
We are unlikely to need it for 3-4 years as cant afford to buy where we are moving.

I havent used any isa allowenece this year, pretty ofay with cash isas but have no clue about shares isas, that's a big grown up world and whilst I'm pretty financially savy I don't really understand the terminology of shares.

Can anyone please shed some light on where I might find reliable and simple info so I can make an informed decesion what best to do with our money.
Thansk
Jo. x

Cautious_Investor_3

Hi

Given your timescale I would suggest that deposit accounts would be the most appropriate solution for you. Most IFAs would consider a 3 - 4 investment period as too short to consider equity ISAs, especially if you are not an experienced investor.

If you are looking for some suggestions re deposit accounts you could as an IFA, do it yourself using a site such as Moneyfacts or Investment Sense offer a free cash manegement service, where they will send you a report of the best deposit accounts given your criteria, the link below will take you there:

http://www.!!!!!!.uk/free-services/cash-management/

I hope this helps.

The Cautious Investor

Loughton_Monkey

A lot depends on how sure you are that you don't want to get your hands on it for a few years.

If you are really sure, then 2 or 3 year bonds might be worth considering. Can get maybe up to 4% if you're lucky. Best 'on demand' rates currently will be as dismal as 2.8% or 2.75% taxable. Use your £5,100 cash ISA allowance(s) (each?) for some of it for marginal extra returns.

Split it up over institutions (or investors), to avoid more than £50K per person in each bank. Also, if using bonds, calculate the rolled up interest at maturity and ensure that the interest won't knock you into a higher tax bracket for that tax year. If doubtful on this, go for a monthly interest option to spread the interest over a period.

vectistim

What's the rate like on premium bonds at the moment?

Loughton_Monkey

vectistim wrote: »

What's the rate like on premium bonds at the moment?

The official rate is 1½% tax free. That literally means that the amount paid out in prizes amounts to exactly 1½% of the amount invested each month.

To some extent, though, this is a bit misleading (although accurate technically). You take the view that all prizes £5,000 and above are in the 'Cat's chance in Hell' category, then the actual rate on more mundane sums is 1.41%

Of course should you be lucky enough to win just one of these bigger prizes, then your own rate will be astronomically high. On mimimum holding of £10, and you win £1 million, that's astronomic. Maybe they should advertise "APR up to 10,000,000%".