Return on 55k - how much?

[GarryA]

I have a mortgage 125k @ 5% with 55k offset against it so I'm only playing interest on £70k, I have thought I might be able to do something better with the money? Like put the 55k somewhere say for 3 yrs then use it to pay a bigger chunk off the mortgage.

Thing is it is super safe offset as I am never going to lose my £55k so anything else would need to be fairly robust and sensible.

Anything? Or is it better leaving it where it is?

[sidicks]

Well, for comparison the yield on a 5-year government bond is 2.2%, so you're going to struggle to find anything approaching 5% without taking some risk....

Sidicks

[ringram]

Plus in effect that's 5% tax free. So if you are a higher rate tax payer its 8% ish equiv. Good luck finding that sort of return risk free elsewhere!