Where to put 50k for 6-12 months?

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Shortly coming in to 50k but will need to gradually draw on it after after 6 months if hubby doesn't find a job.

Any suggestions what/ where to put it to get maximum growth, be it saving acct interest or something else?

ISAs are already maxed out, and I'd rather not split it up into too many different accounts/ schemes as that can be a bit of a hassle to manage.

All thoughts welcome! Thanks!
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  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    get maximum growth

    I'd rather not split it up into too many different accounts

    All thoughts welcome!
    You're not going to get the former without doing the latter!

    But what's your own research thrown up so far? Which savings accounts have you already looked into? Are you prepared to risk some capital?
  • Adamjeffs
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    With that amount and short time scales I would open three 123 accounts with Santander at 1.5% plus cash back on bills if you set dds up on them best you're going to get . You also don't mention whether you or your hub are basic or higher rare tax payers which can make a difference . It's not that much hassle once you have accounts set up to split the money I have 3 tsb accounts and 3 nationwide accounts in mine and girlfriends names all with the max in. I just set up standing orders to go in and out from my main Santander account then sweep the interest back into my Santander account once a month. Takes 5 mins. Your could do peer to peer but as the other poster said capital is at risk and if you may have to draw I wouldn't bother
  • enthusiasticsaver
    enthusiasticsaver Posts: 15,682 Ambassador
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    edited 29 October 2016 at 1:45PM
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    If you don't want to split it look at N S and I income bonds. They only pay 1% so not maximum growth but it will all be in one place, is safe and easily accessible.

    For maximum growth you could do Bank of Scotland accounts, Lloyds, Santander 123, Tesco for accounts in sole names and joint but you need to do the transfers each month to satisfy funding requirements and set up dds on BOS accounts and Santander/Lloyds. It is a bit of a faff but once set up there is no issue.

    Santander 123 - I would just do one as there is a £5 fee each month which you can easily recoup with cashback on council tax, utilities bills. The rate is now just 1.5% on up to £20k.

    Tesco current accounts pay 3% and you do not need to set up direct debits or fund it every month. I have two so I guess you could do 6. 2 each and 2 joint. Not sure about that but if you are able to that is £18000 earning 3%

    You could do 3 BOS accounts earning 3% on up to £15k so that is the whole 50k earning 1.5 - 3%.
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  • YorkshireBoy
    YorkshireBoy Posts: 31,541 Forumite
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    For maximum growth you could do Bank of Scotland accounts, Lloyds, Santander 123, Tesco
    No 5% AER Nationwide accounts? (£7.5K initially and then £1K per month going forward).
    Tesco current accounts...I have two so I guess you could do 6. 2 each and 2 joint. Not sure about that
    Max two with your name on them...so, with Tesco, getting a joint account would be a bad move!
  • Chrissywissy100
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    Thanks everyone. More accounts with lower limits seems to be the best way.

    I had read about the Santander 123, and Tesco but wasn't sure if I was missing something else. Nationwide and BOS I had missed.

    We are both higher rate tax earnings. I'm not sure I understand what this changes? Is it the tax on the interest you are thinking of?
  • badger09
    badger09 Posts: 11,247 Forumite
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    Thanks everyone. More accounts with lower limits seems to be the best way.

    I had read about the Santander 123, and Tesco but wasn't sure if I was missing something else. Nationwide and BOS I had missed.

    We are both higher rate tax earnings. I'm not sure I understand what this changes? Is it the tax on the interest you are thinking of?

    Yes, you will both need to keep track of the interest earned.

    Basic rate taxpayers can earn up to £1k interest a year, tax free. Higher rate taxpayers can only earn up to £500. If either of you earns more than £500 interest, you'll have to pay tax on the excess.
  • Adamjeffs
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    Yep so effectively you'll get 1000 between you. Although depending whether it's affordable and how far over hrt you could make extra pension payments to reduce you to a lower rate tax payer
  • DiggerUK
    DiggerUK Posts: 4,992 Forumite
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    Interest rates on savings are between nothing, and next to nothing. At the moment inflation can mean a negative real return with many a/c's.

    Max out Premium Bonds, instant access online once invested..._
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    I'd put a lump sum in premium bonds as well.
  • mt99
    mt99 Posts: 472 Forumite
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    If it were me I'd put the lot into NS&I income bonds at 1%

    Yes you will be able to get a bit more elsewhere by splitting it etc, but not much more, and anyway it's taxable at 40%. No point in the extra hassle.
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