£130k to invest while renting

pineapple

Hi folks
Selling my house and renting for at least a year. If I buy again it will be somewhere cheap - overseas or Ireland maybe. Meanwhile around £130k to invest.
I'm a pensioner and basic rate tax payer with a smallish monthly income of around £1,100. Not sure I'm an attractive prospect for some of the better paying current accounts! I would need at least 100k to be easily accessible. Other savings could be tied up in 3-5 yr bonds. Any recommendations? Ta.

xylophone

I'm a pensioner and basic rate tax payer with a smallish monthly income of around £1,100.

Does this include savings income?
https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/293747/Fact_sheet_template_-_10__tax_9.pdf
might be worth a look.

There doesn't seem to be any reason why you shouldn't be eligible for the interest paying current accounts?

Otherwise, for an easy life you could put it all in NS and I Income Bonds - monthly paid gross so check out your tax position.

agrinnall

Pensioner bonds coming later this month paying 2.8% on 1 year and 4% on 3 year, you can have both but the maximum you can invest is £20K (£10K in each) and you should get in early as demand may well be high. You can sign up for email notification when the details are announced.

http://www.nsandi.com/65plus

This isn't accessible (well, it is, but you lose 90 days interest and have to take out the whole amount). Once you've exhausted other accessible options you may want to consider the NS&I Direct Saver which pays 1.1% and protects up to £2 million.

http://www.nsandi.com/direct-isa