A nice problem to have

piaad

I've just sold an inherited property for c£400k and feel very blessed. I'm looking to buy a house with it at some point 😊What would the best short term investment strategy, I don't have any ISAs and am married and a basic tax payer. I've looked at NS&I as an option and there are other ideas such as Sidekick but I'm a bit anxious too. Thank you for your time

wmb194

https://forums.moneysavingexpert.com/discussion/6677422/a-nice-problem-to-have

Savings accounts.

https://moneyfactscompare.co.uk/savings-accounts/

Edit: I see you've had a few threads along a similar theme and, due to your risk aversion, they've all suggested savings accounts and Premium Bonds.

Robin9

Do enjoy yourself a little - that holiday to foreign parts , the cruise, the replacement car.

What is your present situation- do you have some cash rainy day reserves for the broken washing machine - what private pension do you / your partner have ?

Dazed_and_C0nfused

https://forums.moneysavingexpert.com/discussion/6677422/a-nice-problem-to-have

Investment aren't generally for the short term.

Is there any reason why you aren't looking at a savings account(s).

piaad

Pension and savings are all ok, looking for a house hence the short term nature of the investment, I probably should have said savings strategy

Eco_Miser

For short term, savings accounts are really the only option.

Stick £20k in a cash ISA to reduce your tax, perhaps £50k in Premium Bonds for the same reason, and less than £120k in each of 3 easy access or notice accounts in unrelated banks or building societies. There are threads here listing and discussing the best of each class.

subjecttocontract

You could put the lot in NS&I accounts whilst you are deciding what/how/when you might want to spend it. They aren't limited to the £120K guarantee. That would probably be the easiest and most straightforward. £400K @ 4% is nearly £44 a day interest that you're loosing whilst you decide.

friolento

https://forums.moneysavingexpert.com/discussion/comment/82079699#Comment_82079699

I reckon the majority if the population doesn’t appreciate the difference between savings and investments, not least because even some Building Societies are talking about investments when they mean savings. And there are pplenty of people who refer to their personal/works pensions as savings. I don’t know whether the OP is aware of the differences but investments would be the wrong thing for them because they want to use the money in the near-ish future.

Bostonerimus1

The money is earmarked for near term spending so it belongs in a bank saving account.

aroominyork

How soon is soon? Might interest on £400k move you into the higher rate tax band, given 4.5% on £400k is £18k? If so, read up on low coupon gilts. For example, TG27 matures in July 2027 (though you can sell it sooner) and pays the equivalent of 4.3% annually if held to maturity of which only 1.25% is taxable. For TN28 maturing in January 2028 only 0.125% is taxable.

piaad

Thanks all