£20,000, 3 years, where?

[RevealingIfYouMightBeStalked]

Where would you put £20k to earn the highest interest, low- medium risk, no-touch for three years? Any ideas?

Thanks.

If you’re saving for a house deposit, then some in a LISA.

If for other purposes, I’d probably stick it gradually into a couple of lower risk funds under the ISA umbrella. Or maybe get fixed term corporate bonds. If you’re very risk averse, you could try premium bonds - it’s ‘wins’ and not interest so there’s no tax on it. However, the wins average out to being slightly below inflation. But at least the capital isn’t at risk.

Offset against a mortgage.

90 day or longer Notice account.
You may not do better than inflation so in real terms the value goes down but you also have low risk.

3 years is not really long enough to put the money at risk. If you want to take risk then you could do something like a Vanguard Lifestrategy 60% equities fund within an ISA wrapper. You are though at risk of loss as the markets could turn and even a 40% bond/other assets could not sufficiently balance out the loss of the equities.

What is the money for in 3 years time? If for a first home and you are under 40, then LISA is worth looking at for £4k if it each year, as the bonus you get is a good return on the investment.

Vanguard even have a 20% Lifestrategy product too. That's very low risk.

Thanks, no, I'm way past 40 and needing a mortgage!

It's just some cash sitting in an account doing nothing. We were going to use it to do some stuff around the house, but we gave up as no tradesmen ever quoted! 🙄 We do have cash invested in Old Mutual through a financial advisor, wonder if we should just bing it there?

Plan is to retire in 3 years, 10 months (youngest leaves uni, I'll be 60). Maybe a motor-home? Since the Spanish villa has become too risky!

Vanguard life strategy products are good for spreading risk imo. There still is a risk though so depends on your approach to that.

Might be worth getting some advice to see if there’s anything tax efficient you can do in regards to investing in a pension then withdrawing tax free?!?

Ask your financial adviser about a deposit-based Structured Product such as the ones from Investec.

You could see what you get through the financial advisor. And compare fees as they vary widely. The Vanguard products have very low fees.

Depending on your circumstances, you could also put the money into your pension as its tax efficient. Or keep in a current account. We use the Santander 123 and it pays 3% interest on balances up to 20k. We use that as our easy access emergency pot and 3% is ok really.

Yes, already have Santander 123!

@joJoSM2 hate to tell you but the Santander 123 account now only pays 1.5% interest and has done for a while. I have one of these accounts too. Disappointing returns anywhere at the moment!

Same position as you! - I’ve bought some premium bonds and put a lbit with Ratesetter. Have a read of MSE though on Peer to Peer as it might not be for you.

I still fancy the Spanish villa in a few years time!

a bit!!

You might want to read up on Peer-to-Peer as it might not be for you!!

Apologies full of cold and currently hard of thinking!!

@srilankadreaming I haven’t even noticed! That’s a bit rubbish. It’s good to have a bit of easily accessible money.