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I think you've answered your own question there. Given current state of affairs and the need to draw down income, Premium Bonds are pretty much the best risk-free option right now. Other option is Marcus by Goldman Sachs paying 0.4% AER. Don't know of anything else out there that fits the bill.
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It also has to be nigh on risk free
No risk, no reward - right?
Make mortgage overpayments then pull them back as you go along?
Could buy a bunch of Rolex then sell them again....
Sounds like the time period is pretty short anyway so inflation will only have a bit of a nibble.
ElGonzo
Howard
@Greenbank
Any suggestions for what to do if you were to get ~7 of months of pay in advance? (It's well below the £85k FSCS protection limit.)
I need to be able to draw it down to cover the months where there's no income, so anything like an ISA is out of the question as this isn't a long term investment and it won't be in there long enough to qualify for many of the interest payments.
It also has to be nigh on risk free. Not even "stick it in these generic stocks which are perfectly safe" as something like, I dunno, a pandemic could see sizeable chunks of that wiped out with no warning.
Haven't got much further than premium bonds as I can buy a load (I'm aware of the limits) and then sell chunks off in time to give me the monthly income. That would at least be better than cash sitting in a current account earning not much interest.