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 : )

I opened a Chip account having read about it on a few Best Of lists. It's a kind of savings account that moves your money around to pick up the best rates. It also does autosaves from your bank account (which you can skip or change if you want). I've been v impressed tbh.

go on this website to calculate how much you’d get in a year with £10000 deposit based on interest figures being quoted

it’s about £500 a year on a £10000 deposit

last year on Premium bonds… i won in total £790 on £8000

https://www.bankofengland.co.uk/education/education-resources/borrowing-savings-calculator

Unless it's changed recently doesn't Martin Lewis arrange things is order of interest rate so if it's higher than the others it's the best one if your only criteria is interest rate

al rayan bank is doing 5.5% for £5k min so you’d each get £275 this is taxable but you have your personal saving allowance of 1k or 500 if you pay higher rate tax.

ISA wise, post office is doing 5% and tax free so you’d get £500

Premium bond comparison rate is 4.4% so comparable but not guaranteed.

but with the added bonus of a big win

A lot of the rates have recently changed since the NY, the best I found a week ago was a 1 year fixed with Investec at 5.3%. I also use Chip for easy access at 4.84% but this rate can vary

I have a similar amount in a one year savings bond and in premium bonds - the savings bond with Atom bank is paying me out £140 a month in interest - performing better than premium bonds

In Martin Lewis’ website money box is offering just over 5% with an additional .98?? Ish for the first 12 months.

I love my Chip account.

But I also love my PBs.

what interest rate?

do you know the odds if a 'big win'? Its an excellent way to lose money over time.

how so? through not accruing the pretty uninspiring current interest rate?

the interest rate on savings will outperform premium bonds. Savings rates are highest that they have been for 15 years.

So yes, everyday of the week I'll take the savings return over some chance of winning where the odds are so bad it borders on being ridiculous.

from my perspective, as a regular winner (and who is a risk taker) it very much has been in mr financial favour over savings

especially when the savings in question is for a mere year so bond rates etc are low

back again, thank you to everyone who responded and has given me advice - it is much appreciated!

so in the end i have decided to open a Cahoot account with 5% interest paid monthly.

silly question- can i withdraw the interest when it's paid? i have a small loan which i would like to use the interest to overpay on .
the cahoot account has free/unlimited withdraws.

I have recently opened a Savings account with Ulster bank which gives 5.2% interest.

There seem to be a lot of accounts with good interest rates around. YBS also seems to have good deals.

You can then if the terms and conditions say you can.

It's only about £40 though so not sure how much difference it would make? Can you not underspend on your current account and pay that? Then you'd have a double whammy of a nice bit of interest at the end as well as a bit paid off the loan. Or just desposit £9500 and pay the £500 straight off?