Ideas for very short term (3 months) investments?

rorrim wrote: »

My first thought was premium bonds though I know Martin himself is sceptical of them, given the time frame I think they seem my best bet?

newbinvestor wrote: »

Why does Martin Lewis not like Premium Bonds? I'm personally a big fan.

Look at Premium Bonds with a clinical financial eye and they're only a good bet as a serious place to put savings if you're lucky, or you're a higher- or top-rate taxpayer who has used up their personal savings allowance, cash ISA allocation, and top bank savings accounts.

Even though many rates have dropped, the top bank savings accounts will all still smash the pants off Premium Bonds, unless you've extremely good luck. And even the top cash ISAs and normal savings are usually likely to pay higher returns, even though their interest rates are actually lower than the Premium Bonds rate, it's a lucky person who'll actually break even with that rate on Premium Bonds.

Premium Bonds are all about your mentality. They do protect your cash, so even if the returns don't look a good bet, it's fine to put a non-significant portion of your money in them, provided you're aware it's more for fun than returns. Before deciding, use the calculator to look at the real odds. If you're willing to take the gamble after that, then it's fine.

Many people often think: "I'm likely to get about 1.4% and there's a small chance of winning a million". But the main point is that this isn't correct. You're actually likely to get quite a lot less than 1.4%, and there's a negligible chance of winning a million. If you know and you're OK with this, then investing in Premium Bonds isn't a bad plan.