Safe investment for extension funds

[mattyc69]

Gents,

I have no idea when it comes to finance and investments so bear with me.

Second big house extension set to go ahead next July, been planning it for a while long before our friend COVID came around.

Mortgage deal was up last month and some of deals around were too good to turn down so I bit the bullet and borrowed the additional £110,000 I need to do the work.

Now what i am after is somewhere safe to put this were it has a chance of actually doing something other than sitting in my current account!

Any help would be much appreciated.

[bitchstewie]

Doesn't exist.

Premium Bonds or NS&I or just find a good savings rate.

With those timescales you want a savings product where you can guarantee that £110K will be there next July.

It's too short timescales for any investment product unless you really are comfortable with the idea that you might only have £90K or whatever there when you need it.

[The Dictator]

Agree with the previous poster and I am a CF30 qualified financial advisor. I will never recommend an investment of funds where the client knows they will be needing it within the next 5 years.

[mattyc69]

Thanks guys appreciate it, I'll sign up for a premium bonds account and get the Mrs to get one aswell. We will plant it in there and see what happens.

[rfisher]

A free £412.50 if left in a building society account paying 0.5% PA for the next 8 months.

I have several BS accounts paying 0.5% with a few £100 in specifically for this purpose.

However, if you don't have any already open, I doubt that you'll be able to open a new account paying that superlative amount.

When I first opened my shiny new Egg account in 2000ish, I was getting 6% interest.

All fields I tells yer.

[rfisher]

Actually 1.1% variable with 120 days notice is available.

You'll need 2 accounts to cover £110,000 should they go bust.

Free £907.50.

Just don't forget to give 120 days notice to withdraw and check that you can take the lot out in one go.

Job jobbied.