£500 - 3 Months - What todo?

Shindig

So I have 500 pounds spare, and dont need it for around 3-4 months.
I was thinking about buying some Premium Bonds with it, but wanted to check here to see if that is the best plan.

If anyone else has a better idea then please share it.
Thanks for reading.

globalds

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Primrose

If you buy premium bonds, they don't even go into the draw until the month after you've purchased them so you'll be missing one month's opportunity to win anything at all. Wherever you put it you won't get much interest. Even if you open a high interest saving account and you're a taxpayer, you'll only earn about £1.60 per month on your £500 so the options for making much profit are very small unfortunately.

[Deleted User]

I'm agreed with Primrose. Premium bonds are not a good idea, read this artclce:

http://www.moneysavingexpert.com/savings/premium-bonds

As Primrose says, putting the money in the best savings account at 6.5% AER (http://www.moneysavingexpert.com/savings/savings-accounts-best-interest) will only earn you £6.38 over 3 months in interest.

There's no point in putting the money in an ISA as you'll use up that amount of your allowance for the year, but assuming you don't think you'll want to use it later in the year then after 3 months, an ISA paying 6.25% would return £7.93...

Still not great.

Other choice is fixed rate savings account but they're typically minimum of 6 months.