Depends on your risk profile I suppose plus what your current debts are ( including mortgage ) , would you need access to the cash in the near term etc.
For it to go into a savings account rather than paying extra off your mortgage then you'd need to be able to get a better rate on those savings Vs the IR you're paying on your mortgage. ( Not forgetting to add tax to it, ie: if Mort rate is 3% , savings rate needs to be around 3.7% to be even , or 5% for a higher rate taxpayer.
As for property , well you need to be yielding a minimum of 7% ( 10% would be better , you'll struggle to find it though unless you know someone in the business ) after allowing for voids , fees etc etc , not easy given the BoE is currently putting the prop in property by printing money ( but thats a topic for another time).
Current return on premium bonds is 1.5% , but then you could be unlucky and win less . My mum bought 30k worth 1.5 yrs ago and has barely scraped 1.5% , she gave me £10k to invest for her in a shares ISA , I said I'd beat her PB's which so far I have , up 11% over the same period , not great , but passable , I don't spend enough time researching at the moment 🙂. But like I said it's down to risk profile .
Of course you capital is safe with PBs as it's backed by the treasury .
Don't want to know what the sum and assuming you are pretty averse to risk , how about.
1. Safety stash of 3 x monthly out goings in an easy accessible account for emergencies.
2. Use your cash ISA allowance.
3. PBs
4. Anything spare leave in the best saving account you can and drip feed it off your mortgage.
DYOR as they say 🙂
Diggy
