£360k over 6 months (help) 😊

lhsecons

If you are both higher rate taxpayers then it makes even more sense to shelter the £40000 in a cash isa as you will start paying tax on any interest above £1000 joint.(£500 each).
This makes your earlier suggestion of premium bonds the cash ISA and the rest in NS@I bonds the best no risk way of storing the money.

Albermarle

if there is any wise, low risk short term investments

Just maybe for future reference - the accounts recommended above are all Savings accounts . This means they are safe , at least up to the compensation limits , but pay a relatively low return . These are best for any short to medium term timelines.

Investments means taking risk of loss, in return for potential improved returns. Some investments are more risky than others but all give a potential for loss, especially in the short term . However in the longer term ( >10 years) there is a high chance that they will  produce a better return than savings ( but this is not guaranteed) .

Good to be clear in your mind of the difference.

kinger101

Laurence____ said:

Hi and thanks again for the advice - Both myself and my wife are in higher rate tax bracket and we have no other interest income.  Therefore would it make sense to open an ISA to get some tax relief on the £40k or keep it simple and just put the whole balance (after premium bonds) in a monthly bond and accept the additional tax?

HR means sheltered is better.  If you can find in ISA paying at least 1%, you'll be about £80-100 better off overall by sheltering the £40K.

eskbanker

Laurence____ said:

I should then use my maximum ISA allowance to put it into a cash account which pays interest monthly....

Laurence____ said:

....a monthly bond....

Just in case of any confusion, don't be under the impression that you need to restrict your search to something paying interest monthly - accounts that only pay annually will still pay pro rata interest on early closure.