Best one pot solution

kidmugsy

SG27 wrote: »

Definitely NS&I. No need to split the money into £85k chunks. Instant access direct saver pays 0.95%. Not a great rate but better than the near 0 you are getting now.

Not a great rate and less than he'll get from £50k in premium bonds, where he can expect about 1.2% - 1.25% in regularish small prizes, plus the tiny chance of a big prize. And all tax-free.

atush

NSI, 50K PBs and the rest into a savings acct or bond depending on earliest date you need the money.

I would however, consider upping your pension contribs while you can.

Richtea42

Thanks.
Going with NSandI and 50K in Premium bonds.
Thanks everyone.

Richard

FatherAbraham

Richtea42 wrote: »

Thanks for all that sound advice.

And sorry for the lack of a piece of vital information.

I want to keep the flexibility to buy a house in a year or so. Although I may well stay put. If I don't end up using the money to buy a place I'd like to think I was doing something more constructive with it.

Getting my full set of premium bonds is probably a good place to start.

Thanks Richard

In that case, you should consider investing it into a fund which holds assets related to the real-estate market which interests you.

Cash deposits have a poor correlation with house prices.

savings4life

Unless you need the funds in the short term (for a house purchase, for example), I'd say your main goal should be beating inflation (currently at 2.5%). If you don't beat inflation, you are essentially losing money.

I'd get as much as I could into stocks and shares (if you are risk averse, you can put the majority of it into bonds as part of that). If you're new to it, I'd start with one of the Roboadvisors, but you could even go direct to someone like Fidelity and put it in there (fees would be much lower if you did that).

ColdIron

savings4life wrote: »

Unless you need the funds in the short term (for a house purchase, for example), I'd say your main goal should be beating inflation (currently at 2.5%). If you don't beat inflation, you are essentially losing money.

I'd get as much as I could into stocks and shares (if you are risk averse, you can put the majority of it into bonds as part of that).

You think bonds will beat inflation?