Where to put £220k short term??

TheSavvySaver

I'll be completing on my house sale in about 4 weeks time. I'll be going into rented accommodation for about 4 - 6 months before buying another property. Where is the best place to put this amount? I have an ISA with 2011/12 allowance in, £18k premium bonds and £15k NSandI index linked bonds. Would it be best to contact an IFA? my bank? Any advice please??

Linton

For only 4-6 months you are not going to do much better than a bank savings account. ISAs and premium bonds have comparatively small maximum limits and so could only take a small % of your £220K. An IFA would only be worthwhile for investing. Investing for such a small timeframe would have a significant chance of losing money.

So I suggest you look on the comparison websites for the best deal available.

innovate

Don't put it all into one bank because you are only protected for £85K per person.

Read the savings articles on the main MSE site.

merlingrey

Speak to your own bank and ask them if they have a savings account that will pay you interest monthly, see what they have to offer first.

These days you are lucky just to get more than 1% per year on 220k ,for 6 months that is like £183 a month. Well for anything that is instant access and has no withdrawal penalties.

innovate

Doesn't matter whether they pay monthly or annually - - what matters is the AER.