20k to stash for at least 12 months, where to put it?

[Dr Murdoch]

Hi, i'm a complete novice when it comes to investing/saving money.

I've got circa 20-22k to put somewhere for about 12 months, I may need to use a bit of it, but the majority should remain untouched.

Is it possible to get this money working for me, or is that pie in the sky?

Any recommendations for banks/investment welcome. Although I can't afford to lose it, so maybe investing isn't ideal?

[227bhp]

The bi weekly 'What to do with money' thread rears its head yet again.
It's up to you whether you go high or low risk, one might pay out well, the other might not.
No risk, low return, easy access, vague chance of high return = Premium Bonds.

[anonymous-user]

227bhp said:

The bi weekly 'What to do with money' thread rears its head yet again.
It's up to you whether you go high or low risk, one might pay out well, the other might not.
No risk, low return, easy access, vague chance of high return = Premium Bonds.

That about sums it up!

[Dr Murdoch]

Apologies for 'another' thread, I didn't want to hijack someone else's, as I assume we all have different issues to deal with.

So maybe just stick in a bank account set up specifically for the purpose of keeping this cash?

Just look on moneysupermarket ect for best interest rates/access?

I did say I was a novice!

[anonymous-user]

Dr Murdoch said:

Apologies for 'another' thread, I didn't want to hijack someone else's, as I assume we all have different issues to deal with.

So maybe just stick in a bank account set up specifically for the purpose of keeping this cash?

Just look on moneysupermarket ect for best interest rates/access?

I did say I was a novice!

The topic does come up a lot so a quick google would help you.

Basically if you are just putting it away for 12 months I'm assuming you'll want it put somewhere safe. That either means the bank where you can earn a whopping 1% or Premium Bonds where you could win £1m.

You could try a 12-month fixed interest savings bond, but you typically have penalties for early exit.

Anything else, such as stocks, would be risky, especially over such a short timeframe.

[Gary29]

I'm in a very similar boat, I have roughly 20K to stuck away until next year to use as a deposit towards a house move.

The truth is 20K is really not a lot of money (in terms of making any interest off it).

Mine is in an ISA with my bank, where I was offered a whopping 1% rate as I'm a 'member'

Never thought about premium bonds, I probably would've took my chances with those to be honest, 1% amounts to nothing really.

The ISA was just convenient as it's easy to drip feed more funds into it from my banking app.

Just to add, I'm allowed 1 withdrawal from the ISA in 12 months or I lose my 'special' 1% rate!!!

[anonymous-user]

Gary29 said:

The truth is 20K is really not a lot of money (in terms of making any interest off it).

Totally agree, I have a Santander 123 account which pays 1.5% up to £20k so I keep that amount in there. Other than that you can get 1.4% (bonus of 0.4% for 12) months with Coventry Building Society.

If you are prepared to tie up your money for 12 months you can get 2.15% with Wyelands Bank.

Basically you have to decide if you are prepared to tie the money up for 12 months for the sake of a few hundred pounds interest.

[chels]

If I were you I would buy premium bonds but don`t expect to win much money I had PB`s for years and got back 1.8%-2.2% per year.

[Jimmy Recard]

Gary29 said:

I'm in a very similar boat, I have roughly 20K to stuck away until next year to use as a deposit towards a house move.

The truth is 20K is really not a lot of money (in terms of making any interest off it).

Mine is in an ISA with my bank, where I was offered a whopping 1% rate as I'm a 'member'

Never thought about premium bonds, I probably would've took my chances with those to be honest, 1% amounts to nothing really.

The ISA was just convenient as it's easy to drip feed more funds into it from my banking app.

Just to add, I'm allowed 1 withdrawal from the ISA in 12 months or I lose my 'special' 1% rate!!!

You’d probably do better in a bank account that’s not an ISA. Loads of banks will give you 1.3% with unlimited withdrawals. Still not amazing, but it gives you the freedom to have it when you want without penalties and 1.3% is better than 1%

Off the top of my head, Tesco Bank and Post Office have accounts that do this.

It also depends on your income tax bracket and whether you’re hitting your tax-free interest allowance, which obviously you don’t have to consider with an ISA

Edited by Jimmy Recard on Monday 6th August 17:50

[troika]

I’d be tempted to put half of it in the highest interest bearing account possible (which is probably not an ISA, don’t forget the regular saver accounts) and the other half accross a couple of well proven funds within an ISA wrapper. Bit of a gamble, I know.

[sidicks]

troika said:

I’d be tempted to put half of it in the highest interest bearing account possible (which is probably not an ISA, don’t forget the regular saver accounts) and the other half accross a couple of well proven funds within an ISA wrapper. Bit of a gamble, I know.

The OP said he can’t afford losses.

[troika]

sidicks said:

The OP said he can’t afford losses.

I know, what was I thinking. Best put it all in funds then! In all seriousness, it’s a tricky and frustrating dilemma, but a nice one to have. Top rate cash deposit / regular savers it is then.

[Dr Murdoch]

Thanks I do appreciate all of the responses.

The money will be used to pay for a kitchen in my new house (haven't even moved in yet) so will be looking at next year at the earliest. I just don't want to keep it in my current account

If that were to happen, there is every chance of me blowing it in true PH style, coke and hookers and not a penny left!