Short term investment of ££££

kcam

Hello, I just completed a rented house sale and have quite a bit of money sitting in a Bank Account - a one time life event so I don't know what to do with it!? I plan to use £83,000 to pay off our mortgage April 2018 once our early redemption fees finish. We also plan to have our loft done in spring which will be £35,000. Please can you give me advice where to put £83,000 and £35,000 to make a bit of money - but be safe and accessible by next spring. Any advice really gratefully received, I have only ever had about £80 in the bank most days until today!!!

Flobberchops

My first thought would be to put the lot in Premium Bonds (max £50k) and/or Income Bonds, both with NS&I, to have 100% treasury protection and due to the very short timescale involved. Even then I believe there's a month or two delay before your deposited money is entered into prize draws.

If you have a child under 18 you could take the morally dubious route of opening children's savings accounts for the interest. For example Halifax Young Saver offers 2% on the first £20k, and Barclays Children's Instant Saver pays 1.75%.

Not sure what other very short term options there are, but I'm sure others will have some interesting suggestions.

xylophone

"Short term" and "investment" are usually incompatible bedfellows.

You and your spouse might each look at a Tesco Internet Saver.

This would be a simple option @ 1.35%.

westv

If you can get £100k of it (£50k each) in premium bonds by end of business tomorrow (probably unlikely I know) you'll be in time for the January draw.

ColdIron

I thought you had to wait a calendar month, January maybe, February more likely

westv

ColdIron wrote: »

I thought you had to wait a calendar month, January more likely

You got me before I got to edit the post.

kcam

Please can you just briefly explain why premium bonds...is it that you don't get anything in interest, but might win something back, is that right? so, a safe place but might get something back? thanks for your help and time.

ColdIron

Maybe have a read of this

https://www.moneysavingexpert.com/savings/premium-bonds

jimjames

kcam wrote: »

, I have only ever had about £80 in the bank most days until today!!!

If this is truly the case then I'd strongly recommend that you open a current account or two so you can keep a portion of the money beyond next April as an emergency fund. You've probably been lucky if you have a rental property and only small amount of money available to cover any emergency or voids but that's luck. You could have been in the situation of a new boiler and no money to pay for it so having some easily accessible cash savings is a really good idea.

kcam

jimjames wrote: »

If this is truly the case then I'd strongly recommend that you open a current account or two so you can keep a portion of the money beyond next April as an emergency fund. You've probably been lucky if you have a rental property and only small amount of money available to cover any emergency or voids but that's luck. You could have been in the situation of a new boiler and no money to pay for it so having some easily accessible cash savings is a really good idea.

Just to clarify - was probably exaggerating a bit '£80 in account' but 2 young kids, work so mega childcare costs etc - not far off £80, left for us at end of month...v glad to finally have some money behind us, phew! Thanks for advice. Apprciated.

kcam

jimjames wrote: »

If this is truly the case then I'd strongly recommend that you open a current account or two so you can keep a portion of the money beyond next April as an emergency fund. You've probably been lucky if you have a rental property and only small amount of money available to cover any emergency or voids but that's luck. You could have been in the situation of a new boiler and no money to pay for it so having some easily accessible cash savings is a really good idea.

Yes, you are right, I have another £30k as well from the sale, aside from the amount I originally posted about am putting that in different places, ISA's, current account etc - it is just these two lump sums £83,000 and £35,000 we don't know what to do with, as such a short time frame - need them next April - thank you though JimJames (above!)