Best place to invest £200K ?

sanju

Just sold my second house and would like to put my £200K away for a year at a time and was wondering where is the best place to do this.

Thanks

wombat42_2

sanju wrote: »

Just sold my second house and would like to put my £200K away for a year at a time and was wondering where is the best place to do this.

Thanks

Does that mean you can only definately avoid touching it for 12 months ? Avoid the stock market unless you can avoiding touching it for 5 years plus.

Otherwise stick it in Cash ISA, and hi interest savings acounts (ICESAVE, sainsburies ICICI).

If you actually mean 12 month then there are few hot 12 month cash bonds around offering about 7% gross.

isofa

It's a lot of cash, might be worth getting some proper advice from an IFA.

For complete risk free, fixed rate bonds, current about around the 7% gross mark (as wombat42 says) would be the best option, but you can't touch the money for 1 year (or whatever the period is for the chosen bond).

For instant access again wombat42s options are the best available at the moment, no penalties access the money whenever you want.

Rafter

An advisor may rub his hands at all the commission to be earned on selling you investment products but if you are happy to take a lower risk then building society and bank accounts are currently paying well above inflation, even after tax.

With that much though you should think about splitting it into 6 lumps of £33k. Isofa is not correct that bank and building societies are totally risk free although any UK based savings account does offer you protection for the first £35k of deposits in each account.

Suggest you do the following:

Max possible in tax free ISA or National savings accounts.

Pop some in high yield 1 year bonds currently paying 7% gross

Pop the rest into top instant access savings accounts paying around 6.3%

Good move selling your second home - don't think house prices will rise as fast as savings accounts next year.

R.