£300,000 how best to increase in a year but be safe

cc120

£300,000 hopefully to increase in a year to help buy home.

What are the options please?

AnotherJoe

Spread it across several of the newer higher interest accounts that pay 1.5% or so.

No more than £85k in each
Fill up LISA and HTB ISA.

cc120

AnotherJoe wrote: »

Spread it across several of the newer higher interest accounts that pay 1.5% or so.

No more than £85k in each
Fill up LISA and HTB ISA.

Thank you AnotherJoe, how much would this make?

DiggerUK

£50,000 is the maximum for premium bonds, and it's guaranteed you will get that back.
The chances of getting no wins is real, but if you do win the only question is how much, £25 or a million..._

cc120

DiggerUK wrote: »

£50,000 is the maximum for premium bonds, and it's guaranteed you will get that back.
The chances of getting no wins is real, but if you do win the only question is how much, £25 or a million..._

Guaranteed to get it back, do you mean by selling them?

AnotherJoe

Its guaranteed you will get it back (by selling) at a value probably of around £49k compared to what it was originally. Plus any prizes you may win. On average £500.

quirkydeptless

In a similar situation, I had my money in 4 easy access accounts earning around 1.5% interest, enough under 85K in each to allow interest to accrue and stay in the FSCS limit. The Marcus and Virgin Money accounts that I used are still available. The latter's limit of 2 withdrawals a year was not an issue for the purpose I was using it for.

Premium Bonds is an option for £50K, but note when you buy them, they will not be in the draw for a month, longer if you don't buy right near the end of a month, so that's in effect a loss of >1 months winnings in your year. Good for it not being taxable though, especially if you are a high rate payer.

Note, in terms of rates on offer here, they are less than inflation.

If you are only looking to buy in 1 years time, rather than within a year, you could also go for a 9 month or 12 month fixed rate, and possibly keep ahead of inflation by a nose.

Keep an eye on this...


https://www.moneysavingexpert.com/savings/savings-accounts-best-interest

cc120

AnotherJoe wrote: »

Its guaranteed you will get it back (by selling) at a value probably of around £49k compared to what it was originally. Plus any prizes you may win. On average £500.

Thank you AnotherJoe.

cc120

quirkydeptless wrote: »

In a similar situation, I had my money in 4 easy access accounts earning around 1.5% interest, enough under 85K in each to allow interest to accrue and stay in the FSCS limit. The Marcus and Virgin Money accounts that I used are still available. The latter's limit of 2 withdrawals a year was not an issue for the purpose I was using it for.

Premium Bonds is an option for £50K, but note when you buy them, they will not be in the draw for a month, longer if you don't buy right near the end of a month, so that's in effect a loss of >1 months winnings in your year. Good for it not being taxable though, especially if you are a high rate payer.

Note, in terms of rates on offer here, they are less than inflation.

If you are only looking to buy in 1 years time, rather than within a year, you could also go for a 9 month or 12 month fixed rate, and possibly keep ahead of inflation by a nose.

Keep an eye on this...


https://www.moneysavingexpert.com/savings/savings-accounts-best-interest

Thank you very much quirkydeptless. How much did you 'make' in a year?

redpete

cc120 wrote: »

Thank you AnotherJoe, how much would this make?

Assume an average interest rate of 1.4%; for £300k this would give approx £4200 interest before tax over the year.

quirkydeptless

cc120 wrote: »

Thank you very much quirkydeptless. How much did you 'make' in a year?

See redpete's post, something like that.