How to invest 50k short term

[phester]

I have been foolish while saving lots of money over the last few years. I have a growing bank balance and never really addressed it by moving the money out into a savings account. Now I have 50k+ in the account doing nothing. But I will be buying a house in the next few months. contracts need to be issued etc. I will also have the ssia maturing in April or so. BOI have offered me a bonus savings rate of 3.25 variable with a 15day to access money. But looking around I seem to see figures of 6% mentioned. espically with the continue saving SSIA money thing. My ssia is with the credit union. I expect that I will need to use 40K when I buy the house

Any advice on how to save short time

 

[ClubMan]

But I will be buying a house in the next few months.

In that case you will presumably be using the money to reduce your borrowing requirements or cover/defray other costs? In which case you should just stick it in the highest yielding demand deposit account on offer. Probably Northern Rock Demand Online but check the to double check.

 

[Satanta]

BOI have offered me a bonus savings rate of 3.25 variable with a 15day to access money.

How kind of them!?!?!

FYI, it's a very poor offer (if you're open to the option of setting up an additional bank account with a different bank).

The 6% offers you hear of are for special regular saver accounts. You have to save a minimium amount every month and have additional rules such as the number of withdrawals you can make etc.
Should you have opened one of these when you began the saving habit it would have been the perfect option.

Given you need the money in a short time (< a year), you're probably better sticking with the deposit option as suggested by CM. You'll get +4% and with no catches, such as 15 day access. So you can dip in and out as often as you need. Check out the link above for additional details on the offers available (or which NR are currently the highest rate).

 

[phester]

I talked to a BOI person who said that they would offer me a 3.25% Bonus 15 day account. I think that this would be a good option until the SSIA matures then lump the ssia into their continue you ssia savers scheme

3months lump at 4%
with the remainder continuous regular saving amount of 1000pm earming 6.25 for up to 18 months.

I would have to do the transaction manually as saver to saver transaction are not allowed.
The money is on demand from the latter when ever I like

What do you think?

 

[Satanta]

What do you think?

It doesn't really matter what we think, it's up to you to pick the option which suits you best.

Sometimes it's understandable, or even the best solution, to go for the easier option (BOI.. or any other bank already being dealt with) than going a slightly higher interest rate which may not be worth all the hassle (NR, RB or other options).

Personally, I think it'd be worth opening the NR account to have for future use anyway, so I'd go that route and put the money at a higher rate... but if you've no intention of using a NR account in the future (if buying a house you may well have no wish for a savings account in the short term ) then the option you're considering is fine. Not the best return you can get, but the value for money side of it (work involved in opening new accounts etc.) is probably pretty good.