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    • Peter D H
    • By Peter D H 5th Jul 18, 5:03 PM
    • 1Posts
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    Peter D H
    40K short term investment
    • #1
    • 5th Jul 18, 5:03 PM
    40K short term investment 5th Jul 18 at 5:03 PM
    I have an endowment policy that I'm cashing in (40K) and am looking at options for investing for 6 months until it'll be used for building work on my property.

    Any advice would be appreciated
Page 1
    • badger09
    • By badger09 5th Jul 18, 5:31 PM
    • 6,397 Posts
    • 5,803 Thanks
    badger09
    • #2
    • 5th Jul 18, 5:31 PM
    • #2
    • 5th Jul 18, 5:31 PM
    I have an endowment policy that I'm cashing in (40K) and am looking at options for investing for 6 months until it'll be used for building work on my property.

    Any advice would be appreciated
    Originally posted by Peter D H
    I think you mean saving, rather than investing?

    For 6 months, you're probably looking at a simple savings account.

    Start here

    https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/
    • Terry Towelling
    • By Terry Towelling 6th Jul 18, 4:52 PM
    • 707 Posts
    • 564 Thanks
    Terry Towelling
    • #3
    • 6th Jul 18, 4:52 PM
    • #3
    • 6th Jul 18, 4:52 PM
    I have an endowment policy that I'm cashing in (40K) and am looking at options for investing for 6 months until it'll be used for building work on my property.

    Any advice would be appreciated
    Originally posted by Peter D H
    Are you cashing it in this far in advance because you believe the market value seems high and you don't want to risk losing out if it falls nearer the time to spend it? If so, then I guess you probably have used the word 'invest' as a generic term and you really want somewhere safe to save it that will also give a return.

    For a short period, I wonder whether a notice account might be best. Paragon do a 120-day notice account paying 1.66% pa. I think Charter Savings does a similar rate with only 95 days required but I haven't checked this recently.

    Some might suggest Premium Bonds - you lose a month at the start and there is no guarantee you will win but estimates suggest an 'expected' return of around 1.2% overall. Is 6 months long enough? Probably not - unless you're very lucky but the returns are tax-free.

    Much depends on how much faff you want. There are some high-interest current accounts paying 5% and some easy-access savers paying around 1.3%. Fill up the current accounts, put some in a notice account and the rest in an easy access account and then recycle the easy-access savings account into numerous regular savers at anywhere between 250 and 500 per month for rates of between 2.25% and 5%. It is a real faff to set up and you'd need to be sure the regular savers were easy access and allowed closure/withdrawals early.

    Personally I'd keep it simple, go for the notice account and remember to serve notice at the right time.
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