6 month investment

SteveG23

Hello all!
I am in the process of selling my property as we have a baby arriving next month. We will be moving in with the mother-in-law (yikes!) who will want a nominal amount for rent. I estimate I will have around £130,000 to invest and will be able to add £1000 per month. As we will probably be buying again in around 6 months, I wondered what would be the best investment? I was looking at an online bank account offering 6.41% that paid interest monthly which would pay around £700 a month in interest. Does this sound a good deal or am I missing something glaringly obvious?
Thanks,
Steve

Ian_W

Strictly speaking it isn't an investment [6 months is far too short a period for stock market related investments] but a savings account as you rightly identify in your post.
The rate sounds good but you should check Martin's article on the main site to ensure it's the best buy/s.

Does this sound a good deal or am I missing something glaringly obvious?

A couple of things you may or may not have missed.
1. FSCS protection only applies to the first £35K [x2 for a joint account] of your deposit, with one of the bigger High St banks that shouldn't be too much of a concern but if the rate is being offered by one of the smaller ones I'd consider two accounts with different banks.
2. Tax. Have you used your cash ISA allowances this year, is one of you a non-taxpayer with the baby due soon? You'll normally pay 20% tax on the interest so any way you can eliminate or reduce that will help you gain more dosh.

BoL at the MIL's - did it myself once in the dim and distant, rather you than me!!