Best 12-month option for £100k?

kempiejon

savingbunny said:

gravel_2 said:

Do you earn? How much/what tax bracket? Do you have other unwrapped savings and how much do you each expect to earn annually from your existing savings?

I'm on 40k and my husband is on 35k. We don't have any savings currently.

Then if you only get £20k each ISAd and stick the balance into a savings account there would be tax to pay on interest above £1000 per person per year. £60k looks like £3+k, so even if joint accounts or the money split there would be tax for either or both of you.
One way to avoid this tax is by sticking £50k max into PBs for one of you.
Still got £10k or so knocking about.
Check the rates that your mortgage costs you and what the help to buy might cost.
There is peace of mind reducing mortgage payments/term, depending on your current rates overpaying the mortgage might be a good place to deploy some money even before 2025. There are penalties for some mortgage overpayments to check.

gravel_2

eskbanker said:

gravel_2 said:

Above post recommends PBs. If you put in  £60k between the two of you then the median return is ~3.9% but I believe average luck would be a return of approx 3.5%.

Although there's no formal definition of the term, the 'average luck' return is generally considered to be the median return, as opposed to the mean (4.4%).

I just use this site: https://www.premiumbondsprizes.com/#60000

For 60k (the amount left over if 40k goes into ISAs). Median is listed as 3.88%, which would be £194 per month but "average month" is listed at £175. It's not my maths. I don't know if this amount is based on the composition of prizes that can be won, where minimum is £25 and then specific prizes above that, or actual average luck account for the larger prizes reducing the pot for the rest.

eskbanker

gravel_2 said:

eskbanker said:

gravel_2 said:

Above post recommends PBs. If you put in  £60k between the two of you then the median return is ~3.9% but I believe average luck would be a return of approx 3.5%.

Although there's no formal definition of the term, the 'average luck' return is generally considered to be the median return, as opposed to the mean (4.4%).

I just use this site: https://www.premiumbondsprizes.com/#60000

For 60k (the amount left over if 40k goes into ISAs). Median is listed as 3.88%, which would be £194 per month but "average month" is listed at £175. It's not my maths. I don't know if this amount is based on the composition of prizes that can be won, where minimum is £25 and then specific prizes above that, or actual average luck account for the larger prizes reducing the pot for the rest.

But you're just looking at the most likely outcome over a single month - it's more normal to consider returns on meaningful periods such as a year, where that site does clarify:

Median Annual Winnings

£2,325

Over one year, with average luck, you'd win £2,325.

Janie2008

If you move another £40000 into an isa in April there won't be much tax to pay. 

winkowinko

£40k now into a 1 year fixed rate ISA

£60k now into a 6 month top rate savings account. Personally i'd put £10k of it into a Raisin account and claim £100 bonus after 10 days.

April 2025, move £40k of the £60k from savings account into a top rate easy access ISA. Leave £20k in a top rate easy access savings account.

September/October 2025 reevaluate where the best place for your £80k and £20k should be for the remaining 2/3 months before you need it. By which point you'll have close to £105k to play with for a few months.

slinger2

You've each got a £1k tax-free interest allowance, so £20k each in a non-ISA account is a sensible option (assuming roughly 5%).

soulsaver

'I will inherit...'

You're obviously happy to share, because it'll be his when it's in an account in his name...

savingbunny

soulsaver said:

'I will inherit...'

You're obviously happy to share, because it'll be his when it's in an account in his name...

Yes, happy to split it between us and understand the risk that he could run off with it! Although not sure 20k would get him far, haha.