What to do with £40k?

[Startingout2015]

Post divorce and house sale I will receive circa £40k in a week or two time.

I won't be in the position to buy again for 12-18 months.

Where should I keep it in the mean time?

I've been thinking about:

Instant access savings
Premium bonds
Peer to peer savings

I don't have debts.
I earn a good wage.
My mo they outgoings are low.

I know people who have had PBs for years and never won a thing.

You can hold £50k of premium bonds now, but the annual prize rate - the 'interest rate' in effect - is about 1.3%, so you really would be better off with £20k in the Santander 123 account mentioned upthread, £5k in a Club Lloyds account, and maybe the rest in an ISA / premium bonds split.

Ive got a thousand in premium bonds. Has anyone worked out the odds? Maybe I should buy more, but seriously from OP perspective a guaranteed rate better.

Have we bored the OP away? Ach well, I love a finance chat

had PBs for years, never won a thing....

interest paying accounts - you need to set up standing orders and direct debits. Monthly savers will all earn you about £100 over the year.

Santander 3% up to £20k
Club Lloyds 4% up to £5k. Associated monthly saver at 4%, £400 per month.
Tesco 3% up to £3k
TSB 5% up to £2k. Associated monthly saver at 5%, £250 per month
Nationwide 5% up to 2.5k. Reward saver 2% up to £1000 per month AND regular saver at 5% up to £400 per month
First direct; get a switching bonus. Monthly saver of 6% up to £300 per month
Clydesdale: 2% up to £3k
Bank of Scotland vantage 3% on between £3k and £5k.

that's the OP sorted. :-)

Just out of interest, I look after 3 family members premium bonds - bought two and a half years ago.

Person 1
£8,000 Prizes £275
Person 2
£8,000 Prizes £175
Person 3
£30,000 Prizes £800

Winnings certainly seem to reduce as the bonds get older.

With £40K you could get a buy to let and move in further down the line. Obviously your situation will be unique to you but there's a potential route in.

Alternatively you could just buy again but would require a lot of leverage and the monthly interest payments could be a pain without rental income.

I had a similiar position 3 years ago.

Filled my Cash ISA limit and kept the balance in the bank.

I think I'd have put some into P2P though if it had been more prevalent and if I'd known about it at the time - the interest on the Cash ISA / bank was absolutely pathetic.

cash interest rates are much more pathetic now!

as of April 5th everyone's first £1000 of interest is tax free. Think of that before you put money in cash ISAs.

Is it true you can have 2 Santander accounts (3 if one is a joint one?)

Ignore! Just read another thread and it's one each for couples plus the joint one doh