What to do with £600,000 for a year

jem16

blinko wrote: »

my advice go and see an IFA

Unless the OP wishes to invest the money, which would be very unwise for a period of a year, then I don't see what good seeing an IFA would be.

blinko

jem16 wrote: »

Unless the OP wishes to invest the money, which would be very unwise for a period of a year, then I don't see what good seeing an IFA would be.

and what do you suggest ?

jem16

blinko wrote: »

and what do you suggest ?

Savings accounts that pay the highest interest rate or perhaps NS&I products for part of it to minimise tax. (as has already been suggested)

Not a great deal of options for one year.

blinko

jem16 wrote: »

Savings accounts that pay the highest interest rate or perhaps NS&I products for part of it to minimise tax. (as has already been suggested)

Not a great deal of options for one year.

agreed savings account is your best friend here buddy,

Ifts

chilos - As you only want to put the money away for 1 year, your choices are limited to what you can do with it, investing it is not advisable for such a short time.
Easy access saving are paying around the 3% mark at the moment. You can get a little bit more around 3.5% for tying up the money for 1 year in a fixed rate savings bond.

If you look here: http://moneyfacts.co.uk/compare/savings/fixed-rate/short-term-bonds/

You can compare short term fixed rate bonds, the top 4 are 1 year savings bonds paying between 3.5% and 3.55%.

I know you said you needed monthly income, but if you put X amount in an easy access savings account (paying over 3%) to cover your outgoings over the year and lock the rest away for a year (only if you are sure you will not need access to these funds before the year) then you could get a little more on your money by locking it away for a year.

I know its only about 0.5% difference between locking it away for a year and easy access savings, but 0.5% on £600000 for a year is £3000 before tax.

Also to be on the safe side just remember the bit about £85k FSCS protection (£170K for joint accounts) for your savings, so you will need to spread it between a few different savings institutions.