Where to save £10,000 lump sum?

[Floorplan101]

Have received £10,000.00 as part of sale proceeds, which I do wish to use to do work to my new house, but not for around a year.

Instead of being sat in a low interest account, is there any accounts worth opening for a year, popping in the money in and letting it grow? It's myself and DH so the option is to save in one lump, or split the money into separate accounts if necessary.

Are Premium Bonds worth looking at? ISA's?

Am fairly uneducated when it comes to savings/interest rates so please explain in idiot terms : )

for one year? i’d dump in premium bonds

Premium bonds for sure.

I don't have much in mine (under 1k) and won £400 so far

I already have a premium bonds account which I will need to unlock. Is Premium Bonds the same as investing though? ie is your money at risk ?

Take a look at cash ISAs. There may still be some with decent rates about - if you can afford to leave it for a year or more.

Savings account. We've had 4xs as much on premium bonds and the return had been less than what we'd get in a standard savings account

over 12 months?

If tax on savings isn't an issue then I'd put it in a bond for a year, you should get over 5%. If you pay a lot of tax then in an ISA.

Premium Bonds is like doing the lottery but you initial investment is safe - you are playing the lottery with the potential interest. You are much more likely to win regularly if you have Full Holdings of £50k but there is always the chance of just winning with £25.

If you know you won't need access to it for the full 12 months I'd lock it away in a bond, Principality often have quite good interest rates but look at Money Saving Expert first to find the best currently.

Premium Bonds is like doing the lottery

not. at. all

why?

you stand to lose…. nothing. zilch. nada.

@plumberdrain did you even bother to read my second sentence? Not even the second sentence, just the second line. Where I said the initial investment was safe but you play the lottery with your potentia interest????

ISA if you have tax implications on the interest made. If not you may an high interest savings acct with a better %

Premium Bomds a bit like a raffle. You buy a number of tickets (£25 bonds). Every month there's a draw. There are some big prizes (£10,000s) and many small ones (£25) and some in between. The more bonds you have, the more likely you are to win.

Unlike a raffle you can cash in your tickets whenever you want. Your investment is safe in that respect, but you may also never win anything. By tying your money up in PBs you are not giving it the opportunity to earn interest elsewhere, bit you have a (slim) chance of a big win.

Yup. Less than £400 over a year on £40,000

We don't have very good luck obviously

I'd look at this

www.moneysavingexpert.com/savings/savings-accounts-best-interest/

I’d put it in a money box isa for 12 months. Have a look at Martin Lewis website

With premium bonds you're more likely to earn next to bugger all than to hit it big. For the short term that you want to save there's not that much in putting it in an ISA wrapper as you probably won't hit the taxable interest threshold anyway.

You can use one of the savings aggregators (e.g. HL active savings) where they have a decent range of fixed term cash savings accounts (i.e. not an investment so no market risk). Depending on your certainty over the timing of when you need the cash there are 9 month and 12 month periods and you'll get just north of 4% p/a with FSCS protection if the bank goes pear shaped. They are pretty easy to set up and administer and when you need the money it can be transferred back to where it came, plus the interest provided you kept it there for the necessary time period.

I've recently taken 20k out of premium bonds because they were the biggest waste of time. I won every month but I would have made more interest in a savings account.

I opened one with Monzo at 5.4% interest and a second with Santander with 5.2% interest.

but what the figures?

I got that wrong. The Monzo account is 5.8% interest and the Santander is 5.08%.

Have a look at money saving expert https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#fixedsavings

Don't really get the MN love for premium bonds, they're a good option as part of a much bigger balanced portfolio as they're super low-risk but the average returns aren't great, yes you can get lucky and get a small windfall, but equally you can get unlucky and get next to nothing. Thing is saving has really never been easier, at the moment a range of simple instant access savings accounts are paying as much as ISAs or longer term fixed rates savers - 5%. So on your £10k in a year you should get £500 return.

Look up Martin Lewis, he has constantly updated comparison, at the moment your best bet is Metro Bank but there are lots of options at around the 5% mark

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#easyaccess

Cash ISA. Leeds BS is 5.05% at the moment tax free with unlimited withdrawals.

Premium bonds are safe but it's pot luck whether you will receive any returns.

Premium bonds!

Ok Martin Lewis website says:- (does this look like a good rate)?

Santander-owned Cahoot

5.12%

(matures after 12 months)

Monthly or annually

£1/ £500,000

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