Best place to put £40k for 2-3 years? Low risk only, please

R_P_W

well for 2-3 years you shouldn't really 'invest' it as its too high risk and you would be risking your capital.

Savings account or premium bonds it looks like then?

badger09

Wywth wrote: »

Thanks, I'll see what a search produces.

The ones I remember were not very obscure in their T&Cs (unless you perhaps got into the nitty gritty of trying to end the policy before the agreed termination date) - the example above was typical, although the cap would have been higher reflecting the typical growth rate expected at the time and perhaps you only got say 70% of growth percentage rather than 100%.
As for charges, well there weren't any specific ones I remember if you let the policy mature until the agreed date.

Edit: just did a look on MoneySuperMarket.com and they all seem to be 5 or 6 year terms now

This is the latest from Which? but do a search on Structured Deposits and you'll find more - none of them complimentary

http://conversation.which.co.uk/money/structured-deposits-stock-market-linked-savings-investment-risk-catch/

Wywth

R_P_W wrote: »

well for 2-3 years you shouldn't really 'invest' it as its too high risk and you would be risking your capital.

Savings account or premium bonds it looks like then?

Premium bonds have already been suggested - see above

A savings/deposit account would be fine
Any suggestions of one that would beat the existing one I have please?

Wywth

badger09 wrote: »

This is the latest from Which? but do a search on Structured Deposits and you'll find more - none of them complimentary

http://conversation.which.co.uk/money/structured-deposits-stock-market-linked-savings-investment-risk-catch/

Thank you, but that also indicates they are currently typically 6 year term products.

As I said, I will need access to the entire amount in 2.5 years so I can't see how such a product would be suitable for me.
I can certainly understand why such products get a bad press if they are inappropriately pushed.

Wywth

Thrugelmir wrote: »

So at no cost you expect your capital to be guaranteed.

Even if the market were to fall.

Not an attractive product to market for an asset manager. .

Oh, I think they are!
You obviously fail to understand how they work so steer well clear.
It's people buying them that don't understand that results in the bad press.
But I'd rather this thread not get into an arguement over the advantages or disadvantages of any particular type of product, but rather get back to the reason for this thread.

Do you have any suggestions on how I could get an improved return on this lump sum as per my request in the OP, please?

innovate

It's dead easy to put £40K across Lloyds and BoS Vantage and a 123, and get 3% AER on all of them. You could do it even with as much as £50K. You just have to want to do it, rather than find reasons why not to.

Have to add though the interest rates are variable on all of these accounts.

Wywth

innovate wrote: »

It's dead easy to put £40K across Lloyds and BoS Vantage and a 123, and get 3% AER on all of them. You could do it even with as much as £50K. You just have to want to do it, rather than find reasons why not to.

Have to add though the interest rates are variable on all of these accounts.

Thank you, but you will see those ideas have already been proposed and my thoughts about it set out in post#8

Thrugelmir

Wywth wrote: »

You obviously fail to understand how they work so steer well clear.

I've worked in finance for enough years to know that nothing is for free. To believe otherwise shows a complete lack of financial understanding. As the "guarantee" would incur a cost in its own right.