Redundancy Help

AutumnDays22

Hello, 
we are a married couple with two teen daughters. I am currently a nursing student and my husband has just been made redundant with a pay out of £50k. 

He is lucky to have found another job with a good wage and so we won’t need to rely on this lump sum and want to save it. 

We have a 5 year plan durin which time I will be through uni,  the kids will be over there 18 and we will be at the end of the current mortgage term. We’d then like to sell up and move to a cottage where the lump sum will come in handy. 

Where is best to save this lump sum? We are considering leaving 10k assessable as a buffer but happy to lock away the other 40k if it will make us more money to do so? 

Any advice please? 

Thanks 

tacpot12

5 years is probably too short a time to consider investing it. So saving it in ISAs or a high interest regular savings account (if you have maxed out your ISA allowances already for this year) is probably the way to go. Both of you can save £20K in ISA in the current tax years, so that takes care of £40K. 

Keeping £10K outside of ISAs is potentially a good idea anyway, and you can't put more than £40K into an ISA this year. The key is not to spend the money just because you have it. Sometimes put the money into a fixed interest or notice account can provide the incentive not to withdraw it on a whim.  

Albermarle

With savings accounts you can lock the money away for a fixed term at a fixed rate, or have it as easy access with a variable rate.
Fixing the rate for a number of years is a sort of gamble that may or may not pay off.
To hedge your bets you can split it up and have some as easy access, some fixed for 2 years, some for 4 years etc .
Personally I think 5 years is a long time to lock money away unless you are absolutely sure you will not need it.

Beddie

To add to the good suggestions above, you could also pay off some of the mortgage, depending if the rate is lower or higher than savings are offering.

You can find the best rates on https://moneyfactscompare.co.uk/savings-accounts/ for easy access, fixed, ISAs etc.

6022tivo

Premium Bonds. 

Bit of Fun, you don't lose, easy access and chance of being Millionaires. 

george4064

6022tivo said:

Premium Bonds. 

Bit of Fun, you don't lose, easy access and chance of being Millionaires. 

This. Or maybe half in easy access earning a guaranteed rate, and half in PBs.