What do I do with the money?

CLINTSSISTER

I have been left 20K in a friends will, now I could, by using all my savings, pay off my mortgage, but have had a quote and with the early payment charges will be better of leaving it until Jan 2008. So what do I do with the money in the mean time? Want the best return for the few months I have to go. Any advise?

ajaxgeezer

If you want to make sure you don't lose it then there is a fixed rate 1 year bond with the West Bromwich Building Society which pays 6.21% gross until April 2008.

Alternatively, if you want to get to it in January then ICICI bank has a 5.65% gross savings account which allows instant access.

As well as either of these the tax man can't get at the returns on 3k of it if you put it in a mini cash ISA (NS&I are offering 5.8% on theirs and is linked to RPI)

Links for all three of these products are available on this excellent site.

Enjoy,
Martin

BrunoM

You really want this to be in the Savings & Investments forum; where I am sure you will be told to stick as much as your allowance allows into a cash ISA(twice, if you haven't yet used this year's allowance, as new tax year from April), then the rest into one of the Best Buy savings accounts that are around, drip-feeding into a Regular Saver account if you care enough

Take a look at the forum though, and read some of the existing threads with similar questions on; the key is you have a middle-size amount for a comparatively short period, and whether you might have an urgent need to withdraw it in the interim.

ohmsoft

Sorry others got there before me - serves me right watching tv while posting - will leave as posted tho

Would consider using your ISA allowances if you havent already and will let the investment peeps comment on what to do with the rest (I'm thinking NS&I investments? - but don't have all the rates etc to hand and whether they would be any good for less than a year).

With the above in mind may be worth posting this in "investments"? - from a mortgage point of view may be worth asking if they will waive the repayment charge as your in the last year.......not likely but always worth a crack