How to invest £80k

lm1981

My wife recently came into some money £80k.
We had planned to put into premium bonds - £50k here and £30k me or put into a fixed rate interest account. Are there any other options that could boost that figure. It’s likely we would use it after our fixed rate to clear half the mortgage 

Sg28

How long until your fixed rate expires?

lm1981

Fixed rate is 1.6% currently and expires in 3 years 

K_S

@lm1981 Personally I’d consider a mix and match of the following, depending on your marginal rate of tax, exactly how long to the end of your fix and how much ISA allowance you have 

- 2/3 year fixed-rate savings that pays interest annually (top accounts currently pay around 6%)

- 2/3 year fixed-rate cash ISA, top accounts pay around 5.5% currently

There are avenues which may potentially return more than the above, but they’ll all come with risk attached to it, variable returns and/or loss of capital. Given that you are likely to use it to reduce your mortgage in 3 years time, I would be reluctant to consider anything that comes with the risk of capital loss.

Sg28

lm1981 said:

Fixed rate is 1.6% currently and expires in 3 years 

In that case just pick the best fixed rate account you can, it might be worth using ISAs and splitting between your wife and yourself to reduce tax, dependent on circumstances.

Premium bonds are unlikely to pay more than the top savings accounts.

Albermarle

lm1981 said:

My wife recently came into some money £80k.
We had planned to put into premium bonds - £50k here and £30k me or put into a fixed rate interest account. Are there any other options that could boost that figure. It’s likely we would use it after our fixed rate to clear half the mortgage 

Depending on your pension situation, age, salary etc it may be worth considering topping them up as part of the plan.