2-3 years is a problem. Time and risk go together and in that timeframe you could easily take a hit investing in real assets. If safe return of funds is paramount then there is nothing clever to be done. ... Premium Bonds is the only dice to roll!
Agreed. Slightly tricky as you need the money at a specified time that isn’t too far away.
What’s your mortgage rate and situation like? You could always pay it down with the money and then remortgage again in 3 years. The interest saved is likely to be more than the nett interest you’d get in a savings account. But then it also depends when you need to remortgage and how long for.
A slightly higher risk approach that I’ve taken before is putting money into funds. As I needed a particular sum, I’d pay out of the ones that were most up. However, you’re running a little risk of things being down when you need the money. IMO it’s not that massive a risk though if you stick to relatively ‘safe’ investments.
It depends upon how much return you like and how much effort you like to put it.
If you don't like to make any effort, go for government bonds or fixed deposits.
Else, you can invest in ideas. You can probably buy an internet company in UK that is relatively small but potential to grow. The chances of you getting the money back in less than 5 years is very high. Once you get it back, the money that comes after that would be high too. You'd be a millionare in less than 10 yrs time if you do it right.
Else, build an ecommerce platform and sell products online. Invest in it. If you invest more you might sell more too. Am sure you can get the money back soon.
Else buy bitcoins and keep the money as cryptocurrency. As the value increases and reaches a peak you can sell it. But on the downside, the bitcoin value is fledgling. So, there is a risk involved.
Bitcoin???? No!!!! Every advice is to steer clear.
You may find fixed term bonds for 2 or 3 years where you cannot access the money before the end date but that may be ok for you. I would look at Money Saving Expert for the best rates. Often a fixed term bond of 2 years will offer a higher rate if you stay in for an extra term so consider that.
Don’t do buy to let. Way too much hassle and what happens if you cannot realise the asset? Most saving experts say 10 years is a reasonable period so, as you don’t have this, your options are limited. We have many long term investments but none are suitable for short term due to possible volatility.
If you can't take risk and need the money in 2-3 years, I think you would tend to be advised to keep it in savings accounts, maxing out cash ISA investments and spreading over several accounts as you only have protection to £85k per account I think. Possibly fixed interest over the time period that you can leave the money for.