Where to safely invest £600k

Millymolly55

Hi, I have just sold my house and need to invest the money for a few years. Can anyone help me as to where to safely invest it please and where I might get a better return for the next few years.

Many Thanks

Sam_J12

Millymolly55 wrote: »

Hi, I have just sold my house and need to invest the money for a few years. Can anyone help me as to where to safely invest it please and where I might get a better return for the next few years.

Many Thanks

The safest place is probably National Savings and Investments ( http://www.nsandi.com/ ) where the government will guarantee your money. You can get up to 1.25% there.

Better returns can be had by using various current, savings and regular savers across the major banks. The best accounts have a limit in the low thousands though. Fixed term savings are worth considering - you can get around 1.8% on a 1 year fixed term and 3% on a 5 year fixed term. Remember that only £75,000 per institution would be guaranteed by the government in the event of an institution going bust.

Finally, you could consider investing some of the money in stocks and shares, although over a period of only a few years there is a significant risk you will lose capital - but also a good chance you will get a good return.

bigfreddiel

If you save the lot with Nsandi in an investment bond the interest will pay you about £600/month, so open an ISA max it out now with £15k in a Lifestrategy 80 fund, if married get your partner to do the same, and drip feed the interest into it from April. March 2017 top both up so you've invested the max in each ISA. Simple to set up and as good as anything else more complicated, which no doubt will follow soon.

Good luck fj

El_Torro

If you want to save (rather than invest) this money then as mentioned NS&I is your best bet for the majority of it. 1.25% isn't much but at least it's above inflation (for now), even if you're paying 40% tax.