Shakespeare: £500 to be locked away for 6 months.
Hi Shakespeare,
Unfortunately, with interest rates at their current low level, returns on £500 over 6 months will be very modest.
6 month bond rates are below the level of normal savings accounts so you would be looking at about 3.3% for a savings account. This would give you about £8.25 (minus tax) for 6 months.
This is keeping the savings in cash, which is advisable for such a short term.
One alternative could be Premium Bonds. The expected return is lower still but your £500 is protected and you might even win the £1m draw.
Hope this helps...