Where to put cash from house sale

[anonymous-user]

We complete on the sale of our house next week and the purchase of the next one is some way off. In any case, we're keeping a fair chunk of cash back for building work on the new property so I'm unsure where best to put it.

About £50,000 will come in next week from the sale. We've never had this sort of money so really don't have a clue where to put it. About £20,000 of it will be going toward a deposit on the next house while we're in rented. I expect to need that in 2-6 months. The remaining £30,000 will be spent over the next year, maybe longer, as part of the building work.

Both need to be relatively easy access I assume and based on that it seems a high interest interest current account may be the best place. Any advice or tips?

[ziggy328]

Premium Bonds? You never know....

[tight fart]

State lottery?

Premium bonds. Secure, a bit of fun, slim chance of big win, money back when you want it.

[dingg]

santander 123 current account

[arnie12]

I am in a very similar situation so would be very interested to hear any other options!

[The Leaper]

Wife and I were in this situation in 1991. We had sold our house and had to wait 10 weeks for the brand new house we bought to be finished and handed over. We exchanged contracts at the beginning of the 10 weeks and had a 6 figure sum to consider to find a home. A Ferrari was a short consideration! We quickly decided to negotiate a short term deposit with a bank at an attractive rate with instant access, this at a time when interest rates were far better than now.

I feel in the subject situation there's two things that over ride everything else: security and quick access.

If I was in the same situation now I'd be tempted to go into premium bonds due to the minimal risk and reasonably quick access. I would not be in the markets at this time due to current volatility.

R.

[anonymous-user]

Premium bonds is a great idea, thank you. I can split it between at Santander 123 and bonds.

[anonymous-user]

Premium bonds is a great idea, thank you. I can split it between at Santander 123 and bonds.

[w1ntermut3]

Premium bonds are just "surprise interest".

You can squirrel away 50k in bank accounts pretty easily and get about a net 3.9% return if you're willing to have a bit of a play?

[33q]

Ok. Tell me how I can 3.9% pretty easily.

[w1ntermut3]

33q said:

Ok. Tell me how I can 3.9% pretty easily.

I'm not being exact for your situation, but I get around that

20k in a 123
2.5 in a nationwide
4 in a club lloyds
3 in tesco
3 in another tesco
2 in tsb
2 in another tsb
5 in BOS
= 41.5
drip feed ~1500/month into nationwide regular, tsb regular, club lloyds regular, etc

and as soon as april passes you will no longer pay tax on first chunk of savings interest so that jumps the net rate amortised over the year up a bit

if you open joint accounts you can double up on all of those

[33q]

No way that makes an average 3.9 %.

I'm into all of those....single .... Joint ... Etc

The regular savings max £250 or £300 per month......and you have to start again each year


Ok I have not spreadsheeted it out but in month 12. I will do tomorrow just to see if I can do better

[ghamer]

w1ntermut3 said:

I'm not being exact for your situation, but I get around that

20k in a 123
2.5 in a nationwide
4 in a club lloyds
3 in tesco
3 in another tesco
2 in tsb
2 in another tsb
5 in BOS
= 41.5
drip feed ~1500/month into nationwide regular, tsb regular, club lloyds regular, etc

and as soon as april passes you will no longer pay tax on first chunk of savings interest so that jumps the net rate amortised over the year up a bit

if you open joint accounts you can double up on all of those

FFS just stick it in your bank until you need it.

[w1ntermut3]

33q said:

No way that makes an average 3.9 %.

I'm into all of those....single .... Joint ... Etc

The regular savings max £250 or £300 per month......and you have to start again each year


Ok I have not spreadsheeted it out but in month 12. I will do tomorrow just to see if I can do better

If you're into joints you can do 13 at 5, 10 at 4, 1500/month at about 5, and 20 at 3. Then even if we include only one month of 'monthly accounts' at 5, that averages to 3.876.

The more money that goes into monthly as time goes on improves this. I quoted 3.9 without joints as I have benefit of a few other bits.

[33q]

Ok. I see where you are coming from on your numbers. With a larger investment pot the numbers start to drop off though.

I need to research further but it appears Nationwide only give their benefits switchers.

I tried Marks and Spencers this week and their regular saver is only for switchers

I applied for First Direct this week. On the phone as new applications were down on the web. I await their decision. Mrs 33q applied on line yesterday and was rejected. They say they will let her know why.

Club Lloyds may be worth a punt or 3 but they do insist on DDs

It appears the banks are tightening up .... Not surprisingly as quite a few of are using them not in the way they intended.

[w1ntermut3]

33q said:

Ok. I see where you are coming from on your numbers. With a larger investment pot the numbers start to drop off though.

I need to research further but it appears Nationwide only give their benefits switchers.

I tried Marks and Spencers this week and their regular saver is only for switchers

I applied for First Direct this week. On the phone as new applications were down on the web. I await their decision. Mrs 33q applied on line yesterday and was rejected. They say they will let her know why.

Club Lloyds may be worth a punt or 3 but they do insist on DDs

It appears the banks are tightening up .... Not surprisingly as quite a few of are using them not in the way they intended.

I was always with NW, but the 5 on 2.5 plus 5 on 500 monthly was pretty good so as not to switch.

First direct is a waste of time - the hundo is good but the monthly saver is limited.

You solve the direct debits by setting both your eBay and PayPal (separate) to DD those accounts. You can set up as many pp and eBay DD as you want.

You solve the min payin using standing orders.

If you have closer to 60 then yes, the rate will drop a bit, but you'll soon see the leftover disappear into monthly savers (500 nwide, 400 CL, 250 tsb, e.t.c) and you can always put the remaining circa 10k into a balance of investment products, your sipp, p2p, buy an e46 m3 etc etc

[33q]

Good news...just been accepted for NW Flex Direct and will then go for the £500 per month Flexclusive. Many thanks for input.

Will get that doubled up shortly when Mrs 33Q completes her Sunday catch up phone calls!

An excellent tip on using ebay and PP for the DDs. I had not thought of those. I was thinking of charities and the lottery.

[33q]

Perhaps I'm missing something but how can you set up multiple DDs on Ebay and PP?

Do you mean setting up multiple Ebay and or PP accounts?

[w1ntermut3]

33q said:

Perhaps I'm missing something but how can you set up multiple DDs on Ebay and PP?

Do you mean setting up multiple Ebay and or PP accounts?

No

You can have as many paypal "funding sources" as you want; they are just a direct debit with no regular payments. You have to verify the account (they make a tiny deposit with a code, you get it from internet banking and put it back into paypal).

For eBay, you set your seller account fees to be direct debited to that account - then, just pay them off in full by card before the DD happens.

[33q]

Ok. I managed to set up a'manual' DD in the manner you suggested. I will test it using an existing account

I was hoping to be able to automate it in some way but it that does not seem possible

It is a small diary task to do it manually but opens up Club Lloyds to me....so a plus

Many thanks again for your input