My daughter has just sold the house she was renting, and asked me the
question. She may want to access the whole amount in 12 months when
she and her husband to be will be looking for another house.
Everything I have is in ISAs, so I'm at a loss what to suggest.
Clear any debt incurring interest where it is possible to re-instate
the debt after 12 months at an interest rate no higher than it was
before, and without any penalties outweighing the benefits. The usual
no point paying 24% on £7800 of credit card debt and receiving 3%
interest on £7800 of savings.
Index Linked Saving Certificates around, 3% cash account, just spread
around re time for any bank collapse delay to payout. Equity products
are too short in timeline unless there is a panic 40% crash tomorrow
(although it can be worth leaving open orders far below the bid
because they DO sometimes get filled and not always reversed as the
AAPL crash demonstrated and quite a few back to 1997).
If it was 2000 I would say buy somewhat more than 200 1oz Gold
Maple's... which would now be £240,600 or so :-) If it was 2008 I
would say buy an oil fund with oil at 65$, oil normally runs at this
time of year and the assumption we go to war with Iran is not
particularly valid (neither Iran or USA want a war, neither can afford
Saving Certs aren't really designed for "short term" savings.
If she really doesn't need the money for 12 months then the current best
deal seems to be Cahoot at 3.65%
Virgin will give you 2.85% Instant access so don't lock the money away for