Where Is The Best Place For A Short Term Investment

It's so unusual for me to have any money in my bank account, let alone the amount I have in there now, I'm really at a loss as to what to do with it.

As the sale of Snowdrop Cottage went through on Tuesday and after I have paid off all my debts I am left with quite a nice little nest egg which will be invested into the house that Clive and I buy together, if his ever sells!

I don't want to leave the money sitting in my current account as its too tempting for me to dip into and its not earning any interest in there.

Does anyone know of the best/safest place to invest at the moment? I have to bear in mind that I might need to give as little as a months notice to withdraw if things suddenly hot up on the housing front. I did wonder about premium bonds but, as I said, I've never been known for my wealth so this is all new to me.

Thanks in anticipation

I am - (hopefully ) going to be in a similar situation soon.

I am going to purchase premium bonds....I have been advised this by several people....I do not know whether this is the best thing to do. I believe there is a limit of £35,000, but I have a friend who has done this (she has 35,000) and she gets between £50 and £300 each month. Its a gamble I guess as there will be no interest, but its safe (as far as I am aware).

Thanks for that, I did think it would be safer like that and the chance to win something whilst I own them...I shall have to look into it further

Try this site its really helpful as advertised by Martin Lewis who gives financial advice on GMTV....

http://www.moneysavingexpert.com/

Hope it helps

Thanks Laura, I'll have a look now

my folks invested the max and did get a few nice surprises some months

INcome bonds is the safest by far, and they pay you a monthly interest, which of course, USED to be good, about 6/7%, whereas now, it's rubbish at 1% or something like that, I don't even bother to look now! If you can afford to tie it up for one or two or even more years, then of course, you're interest rate will be a lot, lot better, BUT, you might need it and you'll lose out big time with penalties. Never, ever leave a large sum in your current account - too risky! Get it out of there quick, even if you just shove it into a reward reserve or deposit account it'll be so much safer.

Thanks for all the advice..I've put a large amount into a deposit account with my banks until I can decide what to do with it and am also going to buy quite a few premium bonds too

Egg are doing an online savings account at 3.25% (2% bonus for a year):

http://new.egg.com/visitor/0,,3_11060--View_819,00.html

Thanks LS, I shall have a look at that