Hi - hope this is the best forum to pose this question.

I'll be getting a tax free £50k in a couple of months time and a £18k pension. I'm still working at the moment and probably will be for another couple of years so I want to save as much of this money as possible at the best rates. After ISA allowances where else should I put this money ? I don't mind normal risk stock market investments (trackers etc) but have lost too much in the last decade to go near anything high risk. As far as the lump sum is concerned I don't mind putting it away for 5 years or so.

Thanks

KB

No way. Premium bonds pay low interest. National Savings and Investments, will only pay 3.4% gross, 2.78% net.

Set aside an amount for emergencies in an easy access account. The rest can go into bonds - there are even some short term bonds paying 6.8% gross for 6-months term, so every 6 months you can re-evaluate your situation. With 50K tax free, you don't need to sacrifice interest from your savings for the vain hope in winning the lottery.

Thanks for the suggestions.

I'm not keen on PBs based on the low interest rates. My in-laws have the full whack invested and rarely see a bean in return!

The bonds you mention Forumfan - are these the ones you see advertised in the Building Societies ? Or should I be looking somewhere else ?

All suggestions gratefully received :)

Use this link:

http://www.moneysupermarket.com/savings/

Select Bonds and Enter the amount you wish to invest. Top of the list is the Birmingham Midshires bond.