where to keep my money for a year or so?

mags_garden

Dear everyone, I am shortly due to receive £40K as a result of a house sale. I intend to spend the money on home improvements over a period of a year or two. So I need access to the funds...but not immediately. I wonder what ideas people have for where I should deposit the £40K whilst I make arrangements for home improvements?

Many thanks in advance.

Carrot007

Try putting it in the fridge, easier access than the freezer ;-)

Albermarle

The only realistic option is an easy access savings account .https://www.moneysavingexpert.com/savings/

AnotherJoe

No help at all but reading this at a glance I thought it said "where should I keep my monkey for a year"
There are plenty of one year term accounts you can use around. 1.5 % or so.

Moneyhelp4u

Hi
Do you have any other savings earning you interest or just these funds?
Are you a UK tax payer?
I’m asking in case of tax (in which case you might need an ISA version of a savings account)

In basic terms an easy access account or notice account will give you best flexibility to get your funds.
Easy access accounts can have withdrawal restrictions or limits, some limit you to one per year, others have none at all. For example the top rate for easy access account available now is from Coventry BS at 1.46 has a maximum of 3 withdrawals per year. Break this and you lose 50 days of interest.
Easy access account rates are also usually variable interest rates, making them more volatile, and can be changed at any time by the bank or building society.
Notice accounts this year have held their rates and been eternally more stable than easy access, but as their name states you need to give a set number of days notice to get your funds. The best rate for a notice account is from Gatehouse Bank at 1.82% expected profit (Islamic Bank).
Hope that helps.

phoenix1837

Premium bonds, with that amount of money you should pull in at least £25 winnings every month with the occasional larger amount and you'll end up with better interest than most easy access savings accounts

ffacoffipawb

AnotherJoe wrote: »

No help at all but reading this at a glance I thought it said "where should I keep my monkey for a year"
There are plenty of one year term accounts you can use around. 1.5 % or so.

He has 80 monkeys to find a home for.

Albermarle

Premium bonds, with that amount of money you should pull in at least £25 winnings every month with the occasional larger amount and you'll end up with better interest than most easy access savings accounts

The official rate of interest on premium bonds assuming average luck is 1.4%, which is the same as the better paying easy access accounts .
However this figure is skewed by the two Million Pound prizes each month . So effectively the interest rate is around 1.2 % + an infinitesimal chance of winning one Million .

Brilley

+ another for Premium bonds, particularly as you can almost afford the max amount (£50k)..safe and easy access...

george4064

Albermarle wrote: »

The only realistic option is an easy access savings account .https://www.moneysavingexpert.com/savings/

To elaborate on this, OP might want to consider fixed term deposit accounts that fit in with their cash requirements in the future. Typically you will get a better interest rate for a fixed term deposit than instant access accounts, another option is notice savings accounts.