2 x 200k to invest for 12-15 months

[Rouleur]

My OH and I will at some point soon have £200k each (or £400k combined) going spare for a period of 12-15 months before we will want to put it into property. We are both mortgage free and won't need to touch the money for at least a year.

What would be the best way to make the money earn for us in the mean time? I don't mind a little bit of risk but I know nothing really about investments so something simple and easy to manage would be ideal for now.

Thanks

[Claudia Skies]

Your question falls dead centre in the category that is only supposed to be answered by a "qualified adviser" who has done a full review of your circumstances.

All I would add,

• It looks a very short timescale for stock market risk.
• Internet access bank accounts seem to offer relatively decent rates of interest at the moment.

Details of some accounts and rates here. You can choose to search fixed term, instant access etc,
http://moneyfacts.co.uk/savings/best-savings-rates...

[z4RRSchris]

if you need the full amount of cash in 12 months i would just choose a 12 month bond

i wouldnt want to put any kind of risk on it if i needed the cash later on.

[anonymous-user]

For that timescale, just stick it in a selection of the best 1 year fixed rate accounts you can find.

[ellroy]

+ 1 to Inky, remember the £85k per person FSCS protection level if you're looking at ultimate security.

[Ginge R]

Consider plonking it in the bank - if you need it all in two years is it more important to make a bit, or not lose a bit? That advice could be refined, but if you have 400k, then a bit of time spent with an adviser would time well spent

[Rouleur]

Thanks for the replies. My OH is going to speak to an IFA but as you all say it looks as though a standard account will be the way to go, which isn't very exciting in terms of the return available..!

[Claudia Skies]

All I would add is that the suggestions in this thread look pretty sound alreday. If you do speak to an IFA,

• Make sure any fees for his/her advice are modest and clearly understood right up front.
• If he/she suggest anything that's not in this thread - come back and let us know!

[anonymous-user]

Personally, I think talking to an IFA about investing for 12 months is pointless. Short term investing at this stage of the economic cycle and with an election coming up sounds like a recipe for pain.

Put it in the bank and you can be safe in the knowledge that when the house you really wants comes onto the market you can jump straight on it.

[EddieSteadyGo]

And don't forget to declare the interest on your tax return.

I had some money in between house sales and so I opened a 'high interest' savings e.g. circa 2% apr.

A year or so later HMRC wrote to me asking about whether I had missed anything important off my tax return hinting about another incomes streams and undeclared bank accounts. At that point the penny dropped and I realised my mistake, and made the necessary update to the tax return.

Small point I know, but thought it was worth mentioning