£20k - where to put it?!

jjlothin

I've today received the £20k I withdrew from a 95-day notice account. I'm able to lock this away for up to a year, but given the current predicted upsurge in interest rates, I was wondering whether it would be best to go for:

• another 95-day notice account (eg, Close Brothers, currently paying 1.05%)
• a one-year fixed term (eg, Smart Save, currently paying 1.4%)
• ... or, just for the interim, in the hope that the direction forward will become clearer, simply move to my 0.6% paying Marcus account?

I do realise it's all a gamble, but any advice/recommendations would be much appreciated!

Albermarle

I think as there may be some increase in interest rates next year ( nor sure it will be an upsurge though) I would avoid fixing for more than one year ( personal opinion only ) . On the other hand if you do not need easy access , probably best to avoid the lower rate .

MX5huggy

Premium Bonds? 

wjr4

Do you need the money? What other savings/investments/pensions do you have? 

jjlothin

wjr4 said:

Do you need the money? What other savings/investments/pensions do you have? 

I don't need the money at the moment ... And certainly I could stash it away for a year, though any longer might be dodgy...

sevenhills

jjlothin said:

I don't need the money at the moment ... And certainly I could stash it away for a year, though any longer might be dodgy...

Spend it now? You are losing £400+ per year to inflation.

london21

You can put the savings you do not need in the short to medium term in low cost tracker funds.  

jjlothin

sevenhills said:

jjlothin said:

I don't need the money at the moment ... And certainly I could stash it away for a year, though any longer might be dodgy...

Spend it now? You are losing £400+ per year to inflation.

Not really an option! It's kind of for a 'moving house' fund, which isn't likely to happen in the immediate future!

jjlothin

london21 said:

You can put the savings you do not need in the short to medium term in low cost tracker funds.  

Thanks for the suggestion but I don't think I'm knowledgeable enough for that!

london21

jjlothin said:

london21 said:

You can put the savings you do not need in the short to medium term in low cost tracker funds.  

Thanks for the suggestion but I don't think I'm knowledgeable enough for that!

Bond or leave in a savings account. The interest rates are not great at present, years ago opened the Santander 123 account and paid 3% now like 0.3%.