short-term investment advice please

edlondon

Hi all,

I have been given £5,000. I need to part with this money in September 2012.

However I was wondering what would be the best way to invest this money over the next four months to receive the best return.

It needs to be risk-free. Would I be best just leaving it in my savings account?

Thank you.

TheSenSibleOne

Unfortunatly theres not alot you can do, leaving it in your savings account is the best option Im afraid

edlondon

fair enough- thanks

kidmugsy

You could avoid taxation on the interest by using a Cash ISA, but the sums involved are so modest that you might prefer to avoid the fuss.

JoVal

kidmugsy wrote: »

You could avoid taxation on the interest by using a Cash ISA, but the sums involved are so modest that you might prefer to avoid the fuss.

It's just as easy to open a cash ISA as to open any savings account. And at the moment, you can earn more on an easy access cash ISA than on a normal taxable easy access savings account.

AA and Cheshire are currently offering 3.50% on their ISAs, whereas Nationwide and Coventry have accounts paying 3.17% AER and 3.15% AER respectively.

JoVal

JoVal wrote: »

It's just as easy to open a cash ISA as to open any savings account. And at the moment, you can earn more on an easy access cash ISA than on a normal taxable easy access savings account.

AA and Cheshire are currently offering 3.50% on their ISAs, whereas Nationwide and Coventry have accounts paying 3.17% AER and 3.15% AER respectively.

Sorry I meant to add to the end of that sentance that the Nationwide and Coventry accounts are taxable accounts - not ISAs.

And watch out for the restricted access - shouldn't be a problem for you if you are simply leaving the cash alone until you need to withdraw it all.

TheSenSibleOne

JoVal wrote: »

Sorry I meant to add to the end of that sentance that the Nationwide and Coventry accounts are taxable accounts - not ISAs.

And watch out for the restricted access - shouldn't be a problem for you if you are simply leaving the cash alone until you need to withdraw it all.

If he is going to withdraw the full amount in september, a cash ISA isn't the best idea due to not being able to put the money back. If the OP wanted to open a cash ISA, He would only be able to pay in £640

Furthermore the tax isn't going to make too much of a diffrence in four months, so i agree with kidmugsy about the hassle