Where should I put my money for a year

Cozymezza_2

Hi, can anyone help me please.

I have come into some money and thought about paying a chunk off my mortgage. However I am tied in till next year and would incur penalties.

Where's best to put £40,000 to make interest until I am out of contract with my mortgage.

All advice would be greatly appreciated.

lisyloo

However I am tied in till next year and would incur penalties.

What's the mortgage rate?
What are the penalties?

Don't write it off, do the maths.

Where's best to put £40,000 to make interest

You can put £5640 into a cash ISA and pay no income tax on the interest.
After that you will pay income tax at 20% or 40%.
You need to find the best paying cash accounts, both variable and 1 year fixed, but don't forget to subtract the tax.
Then compare with mortgage rate minus penalties.