Where should I put lump sum

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I’m due to receive a lump sum from the sale of my property soon of around £40k. I won’t be buying a new property for 1-3 years. I already have an emergency fund so I would like to put this money somewhere that I can’t touch it.

Can anyone recommend where I should put it? I can’t bear the thought of investing and potentially losing money so I’d like something nice and safe. Is premium bonds the best way, or would I real terms ‘lose’ money if I wasn’t to win?

Thank you everyone for your advice.

I already have around £10k in savings in a credit union account, last year the dividend was better than what my ISA was offering. Unfortunately they are not accepting lump sum payments at present.

I wonder if a good option could be to split the money between premium bonds and an ISA/fixed rate savings account.

With a maximum £50k holding of premium bonds you will likely win at least £25 every month, so £40k would be similar. You can't lose the capital and it is instant access.

Failing that open an AJ Bell account and fix at a high interest rate for a fixed term e. g. 12m, 18m, 2 years etc.

The cash savings hub is what I mean: www.youinvest.co.uk/cash-savings#list

I’d put in premium bonds initially whilst you look at other options.

Update, I will be getting £56k on Friday (more than I anticipated!). I will be putting £20k in a 1 year fixed rate ISA with Virgin with a rate of 2.27% (haven’t used any of my ISA allowance this year).

I will put the remaining funds in premium bonds until I find a further 1 year fixed rate savings account. Unless anyone has any better suggestions?

I’ve never had such a big chunk of money before so would appreciate some guidance. Unfortunately because I don’t wish to invest (due to needing access to the funds in 2-3 years), financial advisors aren’t interested!

National Savings instant access Direct Saver is now paying 1.2%.
In my experience Premium Bonds usually pay out at least £25 every month if you have the maximum £50k holding.

I’d also look at chase

www.moneysavingexpert.com/news/2022/03/jp-morgan-s-chase-launches-new-saver-account-with-1-5----here-s-/

Thanks, will have a look at both options