Investing £50k for a year

fartsocks

I have some money from a house sale that I will need again in a year or so, what's a good, safe, way to invest it? I can't risk losing much, if any, so my normal go to of index funds are probably not suitable. Seems like I might be stuck with 1% bank interest.

Stubod

...1 year really is too short to consider investing.....try premium bonds instead...

fartsocks

Stubod said:

...1 year really is too short to consider investing.....try premium bonds instead...

Ah yeah, worth a shot, thanks.

El_Torro

For many years Premium Bonds were bad value. They're certainly not bad value today, though as banks are slowly creeping their interest rates back up it's unclear whether NS&I will do the same with Premium Bonds.

If you know that you won't be accessing the money for at least a year then a 1 year fixed rate might be a good idea. Currently you can get 1.4% interest, which is probably significantly more than you'll win on Premium Bonds.

If you don't know exactly when you'll be buying a property then a 1 year fixed (or even a notice account, which might also beat Premium Bonds) might not be suitable for you. 



So yeah, long story short, go with Premium Bonds. It's not a bad option as things stand today. Though if / when the time comes that savings accounts are a better choice again expect there to be a lag between that happening and people no longer recommending Premium Bonds as the go to choice.