180k to invest for 6 months, but where?

Lynn107

Oh I see, thank you, in my situation though I really need a guaranteed return.

Lynn107

Thank you. I'd be worried about saving with an unfamiliar bank especially as I'll need the money to buy my home.

Keep_pedalling

Lynn107 wrote: »

Thank you. I'd be worried about saving with an unfamiliar bank especially as I'll need the money to buy my home.

Put the bulk of it in NS&I income bond. It might take quite a bit longer than 6 months to find and complete on a new house, and NS&I gives you full protection for as long as you need to keep the money there. Although the interest rate is only 1%, unlike current accounts it is paid on the whole amount.

ValiantSon

Lynn107 wrote: »

But I'll need it in 6 months to buy a house. I don't understand how premium bonds work or the return...

You buy the bonds through NS&I. There is no guaranteed return, but you might win prizes. When you want the money again, you cash in the bonds.

You'd almost certainly be better off putting your money in the best paying savings accounts, unless you feel particularly patriotic and wish to let the government use your money for the slim chance of winning prizes.

ValiantSon

PeacefulWaters wrote: »

You get no interest. But prizes instead. Typical return £50 a month on £50,000. Might get nothing. Might win £1m. Tax free.

Don't be afraid to research them.

No it isn't. With average luck, someone with £50,000 (the maximum) in premium bonds could expect to win £250. Of course, the average requires that half of all people in this situation won't win that much! Meanwhile, £50,000 in a savings account paying 1.3% interest will earn £325.

aroominyork

PeacefulWaters wrote: »

It's a bank. Not one I've heard of.

http://www.bankandclients.com

Correct. There was a hyperlink (albeit a faint one) in my original post. They used to be called Church House Trust (at one time I think owned by Virgin Money) and re-branded a year or two ago. They have very good rates (and in the past were even better) and offer very personalised service - eg sweet old ladies on the phone. I have used them for a while and found them very efficient.

Superscrooge

ValiantSon wrote: »

No it isn't. With average luck, someone with £50,000 (the maximum) in premium bonds could expect to win £250. Of course, the average requires that half of all people in this situation won't win that much! Meanwhile, £50,000 in a savings account paying 1.3% interest will earn £325.

The premium bond calculator predicts £50,000 in premium bonds could expect to win around £50 a month / £500 a year
https://www.moneysavingexpert.com/savings/premium-bonds-calculator/#result

£50,000 in a savings account paying 1.3% would earn £650 by my calculations?

ValiantSon

Superscrooge wrote: »

The premium bond calculator predicts £50,000 in premium bonds could expect to win around £50 a month / £500 a year
https://www.moneysavingexpert.com/savings/premium-bonds-calculator/#result

£50,000 in a savings account paying 1.3% would earn £650 by my calculations?

When I ran the calculator, over 6 months, it came out as £250.

1.3% would be £650 for 12 months, but the OP was talking about a six month time frame, so that is the return I stated.

Superscrooge

ValiantSon - Sorry, I hadn't appreciated you were quoting 6 month returns. Your figures all make sense to me now!

Lynn107

I wanted to reply to Valiant Son but I haven't yet got to grips with this website and I'm a bit lost when it comes to posting quotes! As I am a complete novice I think I'd be more comfortable putting it into a savings account/s, the replies suggest I can expect a return of between 0.5 to 1.3%. Which bank would the 1.3% be with? Are there any negatives? Thanks.