6 month investment

amandamacg

We have a deposit of £40k saved for the purchase of a new house, but as there is nothing on the market just now, we are sub-letting for 6 month period. Any idea what best investment is for this amount for this period?

Thanks,

unimaginative_user_name

Fixed rates tend to pay the best interest but not for six months. If you are sure you won't need the money for six months you could put the money in a six month notice account though you would have to tell them as soon as you put the money I that you wanted it back after six months. It might be best to go for a three month notice account just in case you find your dream home and can't access your funds.

Otherwise just go for the best rate on easy access accounts. You could even put some of the money in a cash ISA again at the best rate available if you haven't already invested in an ISA as the tax saved on the interest would give you a bit more though bear in mind that if you withdraw the money from an ISA before the end of the tax year you can't pay it in again until the next tax year.

Obviously there are other options that could give you a better return (shares for example) but I would say that was too risky for such a short term.

jimjames

Don't invest it as the timescale is too short (normally 5 year minimum is recommended) just put it in the best paying savings account making sure that your total with any one bank is under £85k.