How would you invest a £75k inheritance?

[GimmeGin]

We don't have any ISA's or anything set up at the moment.
Our mortgage is paid off.
We have a BTL property that has approx £100k mortgage fixed at 2.64% until July. Would like to pay as much as this off in July, as assume the interest will more than double.
Where can we invest £75k for best returns until July?

A high interest savings account

Thanks @aramox1

I assumed that we would need to invest for minimum 12 months. Has anyone seen high interest, but can cash in after six months without penalty?

Have a look at Tandem and Zopa. Or Premium Bonds if you fancy the chance of a big win (but take a look at the other threads in here first).

https://www.metrobankonline.co.uk/savings/products/instant-access-savings/

You'd have to pay tax on the interest as well, of course.

Metro has the best rate at the moment.

Put 20k each in an easy access cash Isa, then the rest in a normal savings account until April then max out Isa allowance again. You should get about 1500 in interest between now and then.

If the highest rate savings accounts want a 12 month fix, I'd probably look at cash ISA's OR chance my luck and stick 50k into one PB account and open a second for the remaining 25K (assuming you there's two of you).

I wouldn’t risk pbs over a short time, if you have bad luck you’ll be hundreds down and you won’t be in the draw until February. They’re a medium term investment in my mind unless you’re out of tax free options.

I'd go for ISAs - 20k in both your and your partners now, and same again in April, untaxed, 5.5% growth a year.

Check out this website for the best rates;

www.thesavings.guru

Unless they are higher rate tax payers, op and her partner will each have £1000 savings allowance before they have to pay any tax.

I would buy a Gilt - you can buy the 1% April 2024 Gilt at roughly 5% yield. Most of the return is tax free as only the low coupon is taxed and you buy the bond at a discount and get a capital gain at maturity. You need a brokerage account.