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Where to put £39K for short time

(8 Posts)
mrscardigan Thu 20-Feb-14 10:25:55

We have £39,000 to save for maybe 6 months from a house sale. What would be the best vehicle to put it in? Bank, building society etc.
It's currently sitting in our current account.

BetterWithCheese Thu 20-Feb-14 10:34:47

We were in similar position last year but with a bit less, around £30k. It was March so we opened the highest paying instant access ISAs one each and deposited the full amount allowable then when it was new tax year (April 4th?) we moved the full amount again. I think that covered almost £22k between us. We left the rest but I considered opening a Santander 123 account. You get 3% on balances up to £20000 BUT you need to fund with £500/mth and use the account for two direct debits. I'm sure there are easier ways but most savings accounts pay less than 3% ATM

Braganza Thu 20-Feb-14 20:47:12

Depends on your circumstances really - it's a trade off between returns and capital security for anything but a bog standard easy access account. To be honest for six months it really isn't worth anything but the best easy access deposit rate you can find, unless you want to gamble it in stocks and shares.

duchesse Thu 20-Feb-14 20:52:29

You could "gamble" it in premium bonds. The odds have got dramatically worse but since interest is so low at the moment you wouldn't be risking much and it would at least be very safe.

Braganza Fri 21-Feb-14 08:15:31

Premium bonds are a great idea! You would 'risk' the interest you forego, which would probably be about 0.75%. Premium bonds pay out 1.3%, but as this isn't evenly distributed you'll probably get nothing, but it's got to be worth a punt.

mrscardigan Fri 21-Feb-14 16:52:34

Thank you all.

I'd never thought of premium bonds. Will have to read up on them as not sure exactly what they are!

We'll be using the money to buy another house sometime later this year, so obviously want it to be somewhere safe. But as nobody is paying much interest premium bonds could be a good suggestion.

monkeysox Mon 24-Feb-14 14:15:48

You are allowed two 123 current accounts btw

weeder Mon 03-Mar-14 16:43:30

Premium bonds - you'll loose some interest but may win a lot. Some years we have had over 2% in winnings. Think it takes about a month to get your cash 'out'.

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