£160k short term investment from house sale proceeds

andrewh1983

Dear all,

I wondered if I would be able to pick a few brains for some investment advice.

We sold our house recently as we needed a larger property, however were unable to get a mortgage due to, amongst other things, my wife's outstanding DMP with Stepchange.

I had numerous liabilities also, so we sold up, paid everything off and are renting for a year prior to entering the market again.

Right now I have just over £180,000 which we will need again come May 2015 to buy a new home.

The question is, what should I do with it in the mean time?

I've looked at premium bonds and ISA's, but PB seem like they aren't worth it, and ISA's are generally fixed term and we literally need to store the money for 8 or 9 months.

I've looked at NS&I income bonds which have a rate of around 1 - 1.25%, and it's perfectly safe and accessible - is this the best thing to do, or does anyone have any suggestions?

Thanks very much in advance for any assistance.

Kind regards,

Andrew.

ColdIron

For your timescale the NS&I products are probably the best bet

RickyC_IFSWP

Yes that seems fine. Just beware that the interest is paid gross so you'll need to declare this to HMRC and pay at least the basic rate tax (20%).

You could look at the various current account promotions, Cash ISAs (both you and your wife's allowances - you'll get a new ISA allowance in April 2015 when you're likely to withdraw the money anyway), and regular savers for the short-time period too.