Short Term Investing

MelG69

I have just sold my house and have about £140,000 to invest. Not sure of the current housing market so I want to wait for about 6(?) months to see what happens in the UK, before I buy another property. I have £35K in NS&I Income Bonds, £30K in Premium Bonds, and not sure what to do with the rest. Not too keen on high-risk investments - any recommendations for the best (and safe) return on short-term investing? Thanks.

dunstonh

You cant invest with that timescale unless you are seriously high risk. Stick with savings.

£30K in Premium Bonds

So you do like a gamble and dont mind wasting some money.

drpachu

well,I am sticking to savings-35k in 3 diff including kaupthing.i also wondered about premium bonds,but even before it is into draw,it takes a month sitting there without interest which hurts me.

Aegis

drpachu wrote: »

well,I am sticking to savings-35k in 3 diff including kaupthing.i also wondered about premium bonds,but even before it is into draw,it takes a month sitting there without interest which hurts me.

Plus the odds are absolutely awful.

ailuro2

:spam:

why do they do it?:rolleyes: Surely no-one here is stupid enough to fall for it.

earlgrey_3

Aegis wrote: »

Plus the odds are absolutely awful.

Compared with what?

The lottery, the pools, horse-racing, roulette...? Could you show me the arithmetic for that for someone paying tax at 40% for example? Or were you referring to Kaupthing?

Aegis

earlgrey wrote: »

Compared with what?

The lottery, the pools, horse-racing, roulette...? Could you show me the arithmetic for that for someone paying tax at 40% for example? Or were you referring to Kaupthing?

http://forums.moneysavingexpert.com/showpost.html?p=5973520&postcount=62

I've been having difficulty tracking down the post where I showed the workings for those figures. The figures are for basic rate taxpayers, but even accounting for higher rate the probability of winning big is still higher if you bet your interest from a decent savings account on the Lottery.

Darth_Trader

I made 6.25% tax free on my PBs last financial year, which compared reasonably with a lot of savings accounts. (Actually made in a single win on the first eligible draw.)

Perhaps I'll update here again next April with my percentage gain.

Though, I agree, the real question to address is risk-to-reward. PBs give no guarantees, whereas a savings account offering 6.25% gives you specifically that guarantee.