Short term low risk

[RizzoTheRat]

Having sold some land recently we'd planned use the money to move house, however it looks like I'm going to be working away most of the year so might need to put house moving plans on hold for 6 months to a year.

Currently have money sat in a couple of banks earning 1% interest, which isn't ideal but I'd originally thought it would only be for a couple of months. I'm reluctant to put it in to a fixed rate bond as we'll probably be in a position to move in under a year, but I don't really want to take much/any risk on it. What are my options?

[RizzoTheRat]

Mortgage interest rate isn't that dissimilar to what I'm getting from the bank on savings at the moment, so if I can get a slightly better return on the savings it's not really worth paying off the mortgage as I'd want to re-borrow that money at a slightly higher rate (plan would be borrow a bit more than current mortgage as well as use the savings when moving).

I did wonder about these microloan organisations, but presumably you really need to leave your money in there for a while and it'll take a while to get it back out?

Premium bonds might be a sensible idea, average return is apparently 1.25% though which isn't a lot

Edited by RizzoTheRat on Wednesday 22 February 10:49

[RizzoTheRat]

First £1k a year interest is tax free now isn't it?