Short term for £45k

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Hi all

I have around £45k sitting in a Fund and Share account right now, not invested, its just a cash holding. I need this money in potentially 6, but definitely no more than 8 months time, for a house extension. What is my best place to put it to get the best returns over that period, that will allow me access to it? I understand my rates are going to be generally terrible for that short a length of time, however I would still like to put it somewhere where at least it's going to return me something rather than nothing.

Thanks

Comments

  • Technoholic
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    I should add, I don't want to risk the capital, and I have no ISA allowance left this year.
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    When people say "I have" they often mean "we have" (and we only find this out later).

    So before the replies start to come, perhaps you could confirm whether you're an "I" or a "we"?...as the returns will be significantly better if you're a "we".

    That said, to get you off to a start, you need to look at current accounts paying 3-5% AER.

    Start here...

    www.bankaccountsavings.co.uk

    (But bear in mind that site doesn't mention the £2.5K/£7.5K you could get in Nationwide paying 5% AER.
  • Technoholic
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    Hi,

    You're absolutely right, we're a "we" not an "i", it didn't occur to me to write "we" as the money is in a sole Hargreaves Lansdowne account.

    So yes, if there are options that are better that way, that would be good to hear.

    Also I have just opened a nationwide 5% flexclusive account as I bank with them, but I don't understand you 2.5/7.5 reference?
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    So yes, if there are options that are better that way, that would be good to hear.
    The site link above gives you all you need to know really.
    Also I have just opened a nationwide 5% flexclusive account as I bank with them, but I don't understand you 2.5/7.5 reference?
    FlexDirect current account. One each plus a joint, giving 3 x £2.5K at 5% AER, so £7.5K. If you were an "I" you'd only get one account, so £2.5K.
  • colsten
    colsten Posts: 17,597 Forumite
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    Investing money that you need in the next 6-8 months is sheer madness. Unless you don't care about losing the odd 5 - 50% of it. Whether it's one or two of you doesn't really matter, it's madness all the way. Stick to cash savings.
  • Technoholic
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    colsten wrote: »
    Investing money that you need in the next 6-8 months is sheer madness. Unless you don't care about losing the odd 5 - 50% of it. Whether it's one or two of you doesn't really matter, it's madness all the way. Stick to cash savings.

    As i said in my second post, I don't want to risk the capital. My first post read like i wanted to invest it, I don't. I just meant that it is currently doing nothing at all, so i at least want to put it somewhere where it's doing something, as in a cash savings account or similar. I was just looking for advice on the best way to do that
  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    If you don't fancy the thought of multiple current accounts, you're looking at circa 1.5% AER in a savings account. This compares with the circa 3.9% AER you'd get on the same £45K by using current accounts (all figures gross).

    You'll have to decide if it's worth it for such a short timescale.
  • xylophone
    xylophone Posts: 44,618 Forumite
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    As i said in my second post, I don't want to risk the capital. My first post
    read like i wanted to invest it, I don't. I just meant that it is currently doing nothing at all, so i at least want to put it somewhere where it's doing something, as in a cash savings account or similar. I was just looking for advice on the best way to do that

    You mean that it is sitting in cash in HL?

    For utter simplicity and low interest you could use a savings account.

    Otherwise you can go down the high interest current accounts route.

    A couple of Santander 123 in sole names would give you a reasonable return, even after the £5 fee.

    You could each open a Tesco current account into which you would sweep the monthly interest.

    Presumably between you you have the required DDs (if not a couple of Tesco savings accounts each would solve the problem) and you would cycle money in and out from your non Santander account.
  • Technoholic
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    Yes it's sitting in cash in HL.

    I don't mind splitting the money across a few current accounts, however i don't really want to split it across 8-9 accounts like that website above advised me to do, even if the returns are slightly higher. I will look into the santander accounts and see what that will give me.
  • weenie15
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    Buy premium bonds with it?

    You might get nothing but then again, you might get something.

    In any case, you'll still have your £45k in 6-8 months.
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