Due to potential house sale we may have a large sum of money to put away safely for a year.
Is there anything better than ns&I?
Savings accounts with 5 different firms to make use of the £120k per firm FSCS guarantee?
Investing in defence multi-nationals? BAE/Rheinmetal/etc should make you a fair bit if you have the stomach for it.
*IANAFA
Black or Red?
Inflation likely to spike soon as the effects of Iran start to filter through, so I would consider deposits, but try and avoid fixed rates.
Use your ISA limits of £20K/year each (I assume you are asking for a couple), either cash or shares/fund depending on risk appetite. Other than that, fixed term savings bonds with a limit of £120K per company or NS&I depending on rates.
Monorail
Monorail
Nah, It's more of a Shelbyville idea...
Define “better” and your tolerance to financial risk. If you just want it back with a government-backed gilt based rate of return, that will just about match inflation, ND&I sounds fine.
Personally, i’d be investing some of it in stocks and shares, and where possible use your ISA allowance.
IANAFA either. Last time I was in this position, we just left it in the bank for eight months.
Flagstone is an easy platform to spread a pot of savings across multiple banks without opening loads of accounts
(They take a small cut of course)
£50k (each, if it’s relevant) in premium bonds, £20k (each) in ISA of your choice right away and then more in 12 months if you still have it.
spread the rest around a few different banks IMO, so be FSCS covered.
Marcus is ok for short term easy access (3.75% I think)
some could go somewhere higher risk, with that amount I’d put about a third in stocks. Depends when you want it back
If you're going to need it in a year or fractionally over, then looking at the NS&I rates they're not far off what you could get elsewhere. It'd be simpler than splitting it all over the shop for sure. Put what you can in ISAs, then you'll pay tax on any other interest obvs, but thats pretty much unavoidable
I’ll look after it for you….
Iirc fsc will cover temp high balances up to 1.4 million for 6 months, terms apply. Which may ease the pressure to do something straight away.
For a year, then I'd not be looking at S&S, far too short a timeframe. Trump only has to fart and you've lost thousands.
Also remember that the £120k rule applies to banking groups. So check your potential building society's aren't in the same group as you only get 120 per group
OP is this your primary & only residence you are selling?
If so then 1000 times this:
For a year, then I'd not be looking at S&S, far too short a timeframe. Trump only has to fart and you've lost thousands.
It's an inherited house , so we are not living in it.
It's an inherited house , so we are not living in it.
Ah well. In that case I guess you can invest away to your hearts' content. If it was the money from a temporary displacement from my own only house then there's zero chance I'd be investing it in stock market at present
<Edit to add that even if it was an additional house I still wouldn't nvest it in stock market at present>
£40k in two cash ISAs. £115k in each of four savings accounts. Increase my pension contributions by a chunk to bring my income down to ~£35k so that I only lose half the amount of interest to tax that I would in the higher rate tax bracket
Keep an eye on MoneySavingExpert.com or whatever Martin Lewis’s thing is. He often gets better deals come up on bank accounts.
We are already maxed out on isas and premium bonds.
The problems are that a) it’s a lot of money and b) it’s a relatively short time frame.
A) is a problem as inflation will eat away at it, b) makes it harder to solve because your ability to earn a risk premium safely is significantly limited.
Tax is also going to significantly eat into any interest you make on it.
Sorry, not really a reply. Why do you need it in a year and not now?
Due to potential house sale we may have a large sum of money to put away safely for a year.
Is there anything better than ns&I?
Isn't the traditional response coke and hookers?
Personally I'd blow some of it on a spangly Epic 9
Keep the house, do it up and rent it out. You'll earn free money every month and it'll be worth twice as much as any investment when you come to sell it.
I am not a FSA, do not take my financial advice.
Renting is an option I suppose but start up costs are potentially high.
When selling , any increase in value will be subject to CGT I think.. not an ifa obviously
Keep the house, do it up and rent it out. You'll earn free money every month and it'll be worth twice as much as any investment when you come to sell it.
I am not a FSA, do not take my financial advice.
Have you seen the cost of building materials?
If the house isn't brand new and up to all the requirements of a rental i doubt you will be up in a year.
This might be an option if you're nervous of keeping track of various savings accounts. But for sure first max out your ISA allowance, then Premium Bonds then the rest here.
