£150k but need for school fees

[BaublesBob]

Hello

Where would you look to put £150k which will be needed from 2027 to 2038 for school fees?

I'm maxed out for this year on ISAs but could keep it in a savings account and drip it into ISAs? But I worry that will be too low return

It feels too small a sum for an IFA.

If you use a savings platform (HL Active Savings or Flagstone, for instance) you can easily make a ladder. Set up fixed rate savings bonds with 1, 2, and 3 years durations, then when the first one matures put it into a 3 year bond, then continue. The platforms make it much easier to administer and also mean you can more easily move between banks to avoid the FSCS limit on deposit protection.

You will pay tax on excess interest, but at the moment you should still be able to beat inflation without putting your capital at risk. You can get rates of nearly 5% on one year and 4% on longer terms.

As other posters have said, the pre-payment ship has sailed for avoiding the VAT. We paid ours up to year 11, but unfortunately if you’re not already in the system then it’s plus 20% from here on in.