Short term place for £75,000?

JaneSilvertongue

Hello
We have a significant pot of money sitting in our account that will be spent in over the next 5 - 10 months on a big extension. We feel it would be better somewhere other than out current account or even our saving account, but will need access to it in dribs and drabs to pay various fees (architect / planning) at first and then later in larger amounts for builders' bills. Is there an option that would earn us any interest in the short-term? My mum has suggested premium bonds but I can't find any positive endorsements of PB on moneysavingexpert, so am not sure.
Thoughts and views please? Thank you.

amcluesent

You won't do any better than an online savings account with unlimited withdrawals.

Shatners_Bassoon

Buy 75K worth of XEL shares, sit back and watch it grow to 200K in a month or so

prosaver

JaneSilvertongue wrote: »

Hello
We have a significant pot of money sitting in our account that will be spent in over the next 5 - 10 months on a big extension. We feel it would be better somewhere other than out current account or even our saving account, but will need access to it in dribs and drabs to pay various fees (architect / planning) at first and then later in larger amounts for builders' bills. Is there an option that would earn us any interest in the short-term? My mum has suggested premium bonds but I can't find any positive endorsements of PB on moneysavingexpert, so am not sure.
Thoughts and views please? Thank you.

extension shouldnt cost that much..
i could do it for 50k at the most.. :cool:

opinions4u

I'd look at places like Post Office (2.9%, but it's Irish in disguise, so probably best to keep within £50k FSCS limit) and a range of places paying between 2.5% and 2.75% such as Egg, Tesco, ING, Lloyds eSavings etc.

www.moneyfacts.co.uk/savings will help you to do your own research.

adam91_2

Halifax can offer you an instant access savings account with 2% interest and no penalty on closure / funds withdrawal.

Contact me if you want more information.

Thanks.

Adam

lightwarrior

what is your field of expertise?

psychic_teabag

opinions4u wrote: »

I'd look at places like Post Office (2.9%, but it's Irish in disguise, so probably best to keep within £50k FSCS limit)

If money is needed in the short term, don't really want to have to wait for FSCS to make good any loss.

psychic_teabag

If you are taxpayers and haven't already done so, use your ISA allowance - only a small part of your funds, but better than nothing. Otherwise keep the money in the name of whomever pays lower tax rate.

I'm surprised no-one's mentioned the 4% available from multiple Lloyds vantage current accounts yet - see other threads for the contraints and hoop-jumping required. Between two of you, can only stash a little over half of the total at 4%, but again, better than nothing. An extra 1% on 42k for 6 months amounts to £210 before tax - you'll have to decide for yourself whether it's worth any extra hassle to get this.

psychic_teabag

Another thing that I see others mention on the forum, but I have no knowledge myself : if you have a flexible mortgage, it may be better to use the cash to offset that, since the savings on the interest may exceed the net interest you can get by putting it in a savings account.

Last para at http://www.moneysavingexpert.com/mortgages/mortgages-vs-savings#whynot (presumably)

opinions4u

adam91 wrote: »

Halifax can offer you an instant access savings account with 2% interest and no penalty on closure / funds withdrawal.

Contact me if you want more information.

Thanks.

Adam

Do you realise how unprofessional that looks?