Locking away £500,000 for a year

[AB]

Tax bill of £500,000 there or thereabouts which will need paying January 2026.

Currently in Chase Savings account earning just under 4% but given it can't be spent and it's not needed for 12+ months I'm looking for the best place to put it.

I don't want it at risk.

Ideas?

[Arrivalist]

National savings bond? Total amount safe.

[alscar]

If covered under the temporary high balance scheme ( if ) then up to £1m is fully protected for up to 6 months.
Otherwise you will need to either split the amount into various accounts ( each up to £85k ) or as stated already simply NS&I where the total is safe albeit at presumably a slightly lower interest rate.

[PoorCarCollector]

T26 Gilt

[AB]

Arrivalist said:

National savings bond? Total amount safe.

Not really bothered about the safety in terms of the banks collapsing, I just don't want the value to go down.

Looks like it's 2 year minimum for this anyway at 4.25%?

I'm happy with it where it is if there's nothing better.

[bitchstewie]

PoorCarCollector said:

T26 Gilt

I'd be looking at this.

[WayOutWest]

bhstewie said:

PoorCarCollector said:

T26 Gilt

I'd be looking at this.

This is not a bad idea.

Treasury 0.125% 30/01/2026 (T26) Gilt

Over 4% Yield To Maturity and tax free as the super low coupon means it nearly all comes as capital gains, and gilts are exempt from CGT.
I have used this approach to park money from a house sale for 6 months. it doesn't get any safer than that, and it's not as if we're about to turn into a banana republic governed by a crazy socialist government or anything.

Be warned though, some general investment account providers have a limit when you want to make withdrawals. One I can think of has a £99,999 limit so you'd need to make 6 withdrawals and allow time for all the faff and process they have to do to make sure you're not being scammed. For each and every withdrawal, when you are about to complete on a house purchase. Ask me how I know

[Boringvolvodriver]

Put the maximum allowed into yours and your wife’s name Premium Bonds - you might get a big win!

[Alickadoo]

S&P 500.

[bitchstewie]

He needs it in a year.

That's a massively irresponsible suggestion.

[AB]

Boringvolvodriver said:

Put the maximum allowed into yours and your wife’s name Premium Bonds - you might get a big win!

Already maxed out on them and still waiting!

[C69]

You could consider a 15-month fixed-rate bond.

There aren't too many about, but Cynergy Bank and OakNorth Bank are currently offering 4.75% and 4.60% respectively.

Cynergy will accept up to £1m, not sure about OakNorth.

[Boringvolvodriver]

AB said:

Already maxed out on them and still waiting!

Fair enough

[essayer]

rest in premium bonds or something idk

[AB]

C69 said:

You could consider a 15-month fixed-rate bond.

There aren't too many about, but Cynergy Bank and OakNorth Bank are currently offering 4.75% and 4.60% respectively.

Cynergy will accept up to £1m, not sure about OakNorth.

Thanks, will have a look

[AB]

essayer said:

rest in premium bonds or something idk

As tempting as that is!

[mikef]

AB said:

Tax bill of £500,000 there or thereabouts which will need paying January 2026.

How the heck do you manage to run up that tax bill ?

[AB]

mikef said:

How the heck do you manage to run up that tax bill ?

MVL on one of the businesses. Stupid thing is I'm owed more than that back in S455 tax at the end of next year but it'd be too sensible to do something sensible like offsetting it.

[mikef]

Well done!

[stuthemongoose]

AB said:

essayer said:

rest in premium bonds or something idk

As tempting as that is!

I’m with essayer. How’s the tax man gonna catch you in that!?
(Tn26 - will return about 3.62% after tax, for a 40/45% rate tax payer it’s equivalent to just over 6% so better than any other normal saving account. Only thing lower risk and better would be if your wife has any unused income allowance then a 4.6% bond or invesco 5.2% would both work if in her name!