Best returns on £125k short-term

NinaB_3

I hope someone can help.

I have sold my house and will complete next month. The house I was due to purchase fell through so I will be moving into rented accommodation in the short term.

After I complete on my property I will have £125k equity to invest/ save. I need to know the best place to invest this money for a minimum of 6 months but it could be up to a year before I find a new property (just to confuse matters I am changing jobs so may have to relocate anywhere in the UK). I will then want to use the money towards my next property, so will need to access it at approx. 1 months notice.

I currently have an ING account paying 5% (monthly), an A&L account paying 5.35% (annual) (but this is limited to a max of £25k) a regular saver with the Halifax at 7% (annual) and I have just opened an internet account with the AA paying 5.31% (annual).

Is there a better way of investing this money other than these accounts? I do not want to risk losing my original capital and it is only for a short period, but any advice would be gratefully received.

Many thanks
NinaB

cheerfulcat

Hi, NinaB

There is no investment suitable for such a short period - best to keep it in deposit accounts. You could put £30k into Premium Bonds if you fancied a flutter :-)

HTH

Cheerfulcat

grumbler

Bradford & Bingley eSavings account 5.25%

NinaB_3

Premium bonds - now there's an idea, and who knows I might just be lucky! Thanks Cheerfulcat and Grumbler.
KR's
NinaB

muddyfox470

If you are only going to put the money in for a few months premium bonds would be a waste of time, as once you have invested your £30000 they don't get put in until the next draw, and you won't be earning interest on it.

I would lump it all in one savings account, i.e. the AA account, so long as you can tranfer it all across, and hopefully you will earn interest for the one or 2 months! Remember though that interest won't be paid until the time specified, i.e. it could be in september or whenever AA do their things. Why not try and contact AA and see if you can tranfer the whole £125k in one go?

Hope that helps

Ian