What is best way to use savings

joru

Hello,

I'm selling my house and renting for a year as we are relocating and don't wont to buy before living in the area we are moving too.

We will have 30,000 in the bank and I wondered if anyone could give me ideas on how to invest this money for a 2-3 year period.

I guess I can invest some in an ISA but not really sure what other options I have.

Thanks in advance.

Cheers Joe.

opinions4u

2-3 years suggests cash deposits, rather than investements where the value can potentially fall.

I'd head for a site like www.moneyfacts.co.uk to look at things like:

- ISAs (e.g. The AA at 3.35%), including fixed rate ISAs. One per person per tax year. That means a couple could have close to £22k saved tax free by 6th April 2012.
- Easy access accounts (e.g. Tesco, Halifax Web Saver etc).
- Fixed term accounts (terms of 2 years or less).

Consider mixing funds between the 3.

kidmugsy

You could also have a look at the T&Cs of the new Index-Linked Savings Certificates from NS&I when they appear. Past issues have had penalties for cashing-in early, but they've been pretty light once you've held the certificates for a full year.