Money sitting in the bank, but buying a house...
Discussion
So I am in a bit of an odd financial position at the moment, with money in the bank that I don't know what to do (if anything) with.
I sold my house a couple of years back, went travelling / working abroad etc and the house money has just been sitting in a savings account and premium bonds since the sale, and has not really been doing anything.
I am going to be working away again this winter but next year I will hopefully be buying another house. The thing is I don't know whats best to do with this money in the meantime. Obviously I have been lucky in not investing it before this virus scenario but I would really like it to be working a bit harder for me.
Getting 1% on a 6 figure sum seems like such a waste, but on the other hand its safe just sitting there. There must be a middle ground, but I don't know if it is worth doing anything as it will be getting used in a years time.
Thoughts would be appreciated
I sold my house a couple of years back, went travelling / working abroad etc and the house money has just been sitting in a savings account and premium bonds since the sale, and has not really been doing anything.
I am going to be working away again this winter but next year I will hopefully be buying another house. The thing is I don't know whats best to do with this money in the meantime. Obviously I have been lucky in not investing it before this virus scenario but I would really like it to be working a bit harder for me.
Getting 1% on a 6 figure sum seems like such a waste, but on the other hand its safe just sitting there. There must be a middle ground, but I don't know if it is worth doing anything as it will be getting used in a years time.
Thoughts would be appreciated
If its a 6 figure sum it may not be safe. Max per person per account covered by the compensation scheme is £85K.
https://www.fscs.org.uk/what-we-cover/?gclid=CjwKC...
https://www.fscs.org.uk/what-we-cover/?gclid=CjwKC...
jsf said:
If its a 6 figure sum it may not be safe. Max per person per account covered by the compensation scheme is £85K.
https://www.fscs.org.uk/what-we-cover/?gclid=CjwKC...
80k in the savings account and the rest in premium bonds https://www.fscs.org.uk/what-we-cover/?gclid=CjwKC...
If you're going to use the money next year (or may need it earlier) I'd suggest maxing out on Premium Bonds if you haven't taken out the full allowance and leave the rest in an easy access savings account. Marcus by Goldman Sachs is paying 1.2% (currently 1.3 but it is dropping in May) or a Direct Saver with NS&I paying 1.00%.
I know that's more or less what you're doing now and I'd leave it at that.
There isn't really much available for savers these days.
I know that's more or less what you're doing now and I'd leave it at that.
There isn't really much available for savers these days.
You don't mention the amount you have, but if it's above £250k worth looking at Flagstone :-
https://www.flagstoneim.com/
They have some higher interest rate / term options and it's easy to spread around accounts to take advantage of the £85k protection.
I'd be tempted to look at shares / funds as well, with at least some of the funds, with prices as they are at the moment, but obviously increased risk. Using your ISA allowance if not already done so (see IM pinned thread)
https://www.flagstoneim.com/
They have some higher interest rate / term options and it's easy to spread around accounts to take advantage of the £85k protection.
I'd be tempted to look at shares / funds as well, with at least some of the funds, with prices as they are at the moment, but obviously increased risk. Using your ISA allowance if not already done so (see IM pinned thread)
Edited by WillB on Monday 20th April 19:11
You are probably best to stay as you are to be honest. but to answer your question about a middle ground there are wide range of defensive funds available.
These invest in assets such as gilts and bonds or shares in companies that have defensive properties, or sometimes a mixture of both.
With your timeframe however, as I and other have said, staying where you are in premium bonds and cash is very sensible.
These invest in assets such as gilts and bonds or shares in companies that have defensive properties, or sometimes a mixture of both.
With your timeframe however, as I and other have said, staying where you are in premium bonds and cash is very sensible.
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