Best for easy access to funds

Isitdoable

I have around £40,000 sat in a bank account at the moment.  I don't need it this second, but possible will need access to some of it with little notice, it is all earmarked for future use but not for the next three months.  My gut instinct is that it sitting in a current account is making me absolutely nothing - should I/can I be doing something better with it?

grumiofoundation

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

Best for easy access NSandI 1.16%, Marcus 1.05% 

Premium bonds are an alternative but over only 3 months maybe not the best option* (since you don't earn "interest" from day 1, it takes a month for them to actually be entered)

*edit: see eskbanker comment below - depends on exactly when will invest/remove 

george4064

I second grumiofoundation's suggestions, 3 months is not a very long period so you're not going to gain much interest anyway (only a 1/4 of the year).

Albermarle

https://moneyfacts.co.uk/savings-accounts/easy-access-savings-accounts/

Isitdoable

I'm presuming any short term 'investment' would be very high risk?

grumiofoundation

Isitdoable said:

I'm presuming any short term 'investment' would be very high risk?

Yes 

ColdIron

Yes, for 3 months definitely stick to cash

Isitdoable

Thank you all

eskbanker

grumiofoundation said:

Premium bonds are an alternative but over only 3 months probably not the best option (since it take a month for them to actually be entered)

I don't think that month is particularly significant myself if you buy PBs this week, in that they'd be eligible to win prizes on 1 July, whereas if you stick money in an easy-access savings account this week it will have earned a month's worth of interest a few days earlier at most, so the two alternatives are much of a muchness right now.

Granted, it can be a significant issue if buying or selling PBs at sub-optimal times though, and in general it makes sense to hold PBs for a longer time than a few months, but for reasons of gravitating towards the average return....

Isitdoable

eskbanker said:

grumiofoundation said:

Premium bonds are an alternative but over only 3 months probably not the best option (since it take a month for them to actually be entered)

I don't think that month is particularly significant myself if you buy PBs this week, in that they'd be eligible to win prizes on 1 July, whereas if you stick money in an easy-access savings account this week it will have earned a month's worth of interest a few days earlier at most, so the two alternatives are much of a muchness right now.

Granted, it can be a significant issue if buying or selling PBs at sub-optimal times though, and in general it makes sense to hold PBs for a longer time than a few months, but for reasons of gravitating towards the average return....

I'm guessing with the minimal amount it would earn anyway in an account, maybe the premium bonds would be an idea, given there is a (albeit very small) chance of winning something?!

Albermarle

With £40K in premium bonds you should get about 18 prizes a year. So if you had PBs for 6 months , you would 'lose' a month as explained above. So you should get around  8 prizes . These are most likely to be £25, with a chance of £100 and a pretty small chance of anything bigger ( an almost infinitesimally small chance of winning a Million ). An effective interest rate around 1 %