Quick savings

ixedoc

Hi
this may seem like a bizzare question. we have just sold our house and have a decent sum of money to put away until we buy another house(not likely to happen in the next 6 months or so) hence- looking for a good way to put the money away and acheive a good interest rate- one that is paid monthly so if we decide to take the whole amount out in 6 months we wont be penalised for it. any suggestions? we thought we could get our isa quota done for the year, this ties us up for one year, but need another option too!
many thanks

HappyMJ

£20,000 can be put into a Santander 1-2-3 account. Fees apply but it's a decent interest rate. Taxable as well but if you're on basic rate tax then it isn't too bad. There are plenty of other place to stash money for short periods of time.

xylophone

If you want it all in one place, consider NS&I Income Bonds.

http://www.nsandi.com/savings-income-bonds

Eco_Miser

ixedoc wrote: »

looking for a good way to put the money away and acheive a good interest rate- one that is paid monthly so if we decide to take the whole amount out in 6 months we wont be penalised for it.

Those are two different things.
There accounts which pay monthly interest (to a different account), but do not allow the principal to be withdrawn early, and there are accounts which can be closed anytime, but only pay interest annually, or on closure if that happens first.

For completeness, there are also fixed-term accounts where you get both principal and interest at the end of the term, and not before; and instant-access accounts paying monthly interest.