£52k-what are best risk-free return ideas?

Bones74

Hi everyone,

I have £52k in savings-until recently I have been looking at using that as a deposit on a house but have decided to hold on and see where property prices go in the near future!
I am currently with the Nationwide and have £32k in an ISA, £0 in a flexaccount where my wages of £990/month are paid into before I transfer it to the higher interest e-savings account (where the other £20k is).
I am currently renting a room in my friends house very cheaply but have to leave shortly and am looking rent my own place-as a result my monthly savings will be lower but would still be in the region of £200-250.

Any ideas on what I should do with this lump sum (bearing in mind I will be looking at the housing market again in 6-12 months)?

Primrose

One Year Bonds offer a good rate but you can't cash them in before that time so may not be suitable for you if you suddenly found the ideal house in 6 months time. Bearing in mind you're essentially looking for short time good deals and you seem to be happy with internet banking, ICESAVE is probably one of your best bets, currently offering 6.2%. But as you're obviously a taxpayer, don't cash in your ISA if you find a better deal than Nationwide as you'll lose the tax-free benefits. Make sure you complete a transfer form. I don't know if Nationwide change a penalty for transferring ISA's out so check this first.

isofa

I agree with Primrose, as you might need the money quickly, ICESave would be my choice too, good rate, good long term performer (so far) and instant access.
If you can afford to tie it up for 12 months, the BMWSavings 1 year bond at 6.7% gross appears the best rate at the moment.
Be careful not to loose your ISA tax free zone, transferring to a better ISA may help if you shop around, but never close the ISA (let the transfer happen between the companies you choose) or you'll loose the tax free status on that total, and won't be able to reclaim it.