I have just sold my house and am renting for a bit as not sure where or what I am going to do next, anybody got any ideas what to with the money I have a least one year where I will not need it £180,000 any help would be great Thanks

Hello

A word of advice - don't take specific advice!

Form your own opinion and make your decision based on a good range of views, information, opinion etc

The most crucial question you should ask yourself is what is your attitude to risk

If the answer is no risk than cash isa (only 3k mind) + sainsburys internet saver look a good bet

if you fancy investing some of the monies in low risk trusts, oeics, shares, funds etc than look at past performance and the integrity of the company / fund provider in which you are trusting to give you a return

remember shares etc are long-term investments so a 1-year timescale might be restrictive

good luck anyhow, pp

edit - typo

You shouldnt p*ss about with equities unless you have definately decided you can leave it alone for 5 years plus. Otherwise I would just stick it all in high interest savings accounts and Cash ISAs.

If you are willing to leave it for 5 years, dont stick more than 50% into equities and keep the other 50% as a cash buffer as rainy day money.

And dont stick more than 33k in any account - if they go belly up you only get a proportion of it back unless its under 33k (i think) and then you get the lot back.

NS&I best ISA around at the moment

Pearshape

I just sold my house too. The relief is amazing

I am still trying to decide to do with all the money. However, don't let it sit in your current account.

Personally, I opened a Sainsbury's Internet Saver account. After the 1st August their rate will be 6.25% or 5% net.

£180,000 @ 5% = £9000 a year or £750 a month or £173 a week or £24.65 per day. So if the money is in your current account you are losing nearly £25 quid a day.

I'm also opening a NS&I ISA. And looking at NS&I index linked certificates (very safe - government backed).

Good luck and enjoy the weight off your shoulders...

Do I really need to worry about this??? How many banks go bust?????

I've got a similar amount which I use to generate income for renting as I'm unable to work through illness at the moment.

Had a chat with my IFA yesterday and he [surprisingly] agreed that in terms of short term, LOW/ZERO RISK investments, high rate savings accounts were as good an option as any at the moment.

Mine is split between ISA's and high rate savings as I'm a basic rate tax payer. I'm moving some into Tesco's Instant Access savings right now as from 15th August they'll be paying 6.75% gross (interest paid annually) on balances between £50-100k. This rate includes a 0.25% rise on 15th August and a 1% bonus paid after 6 months, at which point you can shift your cash somewhere better if necessary. Personally, I split my money between a number of competitive accounts.

NOTE: The above gross rate is 6.60% if you take your interest monthly and you need to open an account BEFORE 14th August.

They thought that Barrings would never go.........................................

Its just a pain in the butt tryin to keep under 33K. It makes life very complicated . What happens in say 5 years time when you breach the 33K limit on several accounts at once ?

Barings was an investment bank not a savings bank and anyway I think it just got taken over. The last bank to go bust was BCCI in about 1985 and regulations have been tightened since then.

If you're nervous about certain banks, I would stick with household names personally and try to stay away from overseas based institutions (e.g. ICESAVE, ICICI). Tempting rates but perhaps not best to put all your eggs in one basket?

Some of the major supermarkets are coming up with good rates (e.g. Sainsburys, Tescos) and are backed by big names like HBOS.

There are enough good rates around not to have to put all of your cash in one account thus minimising any potential loss. You could opt for a fixed rate bond over 1-5 years e.g. AIB FRB @ 6.7% or a GIB if you want a monthly income and capital protection. Many of these give good FSA regulated guarantees on your investment but of course if rates continue to rise, your cash won't see the benefit if these increases.

If you're not prepared to risk a savings account or two then you could chance a burglar nabbing it 'interest free' from under your bed. Hopefully, this won't happen until it's been eroded significantly by inflation.

Sooner risk sticking it in a few HR accounts myself...