What to do with 150k short term?

[Willber]

Ive got the proceeds of a house sale (150k) currently sat in an easy access account earning 0.5 %

Conscious of spreading it across a few places to fit within the 85k FCSC protection.

Should I stick some in an instant access account paying higher rate (sainsburys), max out premium bonds and the rest somewhere else (ISA)?

I will need access to the funds for a house deposit possibly in the next 6 months but would like instant / easy access.

Its all new to me so would like something straight forward and low risk!

Cheers

[911sse]

Six months at 3.2% with Atom.

[Bluesgirl]

Moneysavingexpert.com will tell you the Best Buy ISAs and instant access savings accounts. Put the maximum (£20,000) into a cash ISA and the rest into instant access, then if you still don't need it in April, put another £20k from the instant access account into the ISA.

[Drew106]

£50k premium bonds
£85k Sainsbury's 2.75% easy access or similar
£15k in the next best easy access saver

That's what I would do in the situation.

[nick s]

I've just done the same (but with a bit more cash) and stuck it in the Santander easy access 2.75%.

I was under the impression that if it's a joint account the FCSC protection doubles to £170k?

[Willber]

Thanks for the quick replies!

Stupid question - if interest is paid annually and I withdraw the money prior to one year anniversary of opening account what happens then? Do I have to wait for the interest to be paid? Unsure whether a monthly paid interest account would be better?!

[alscar]

Protection is indeed x2 for a Joint account ie a total of £170k but obvs just watch out in case any Banks etc are in fact part of the same organisation in which case that £170k is still the maximum.
If annual interest and account closed early ( assuming permissible which as easy access it will be ) then interest simply paid pro rata ie 10/12ths or whatever.

[Willber]

Will the interest be paid upon close of account then? If not going to hold for a year, would monthly interest payment be better?

[alscar]

Interest earned would be paid upon closure.
Monthly interest can be at a lower interest rate so you need to do your sums.
I suspect not a lot in it though.

[Rob_125]

Fcsc protection limit is 1 million, for 6 months upon large deposits. For certain circumstances including property transactions.
Which may or may not make your decisions easier.

[The Chevalier de Recci]

Rob_125 said:

Fcsc protection limit is 1 million, for 6 months upon large deposits. For certain circumstances including property transactions.
Which may or may not make your decisions easier.

This.

Was in the same position last year and put the whole lot into a notice account via Raisin. Bought another house 6 months later.

I double checked with FCSC direct re the limits and it is definitely £1m for 6 months.

[mark seeker]

Rob_125 said:

Fcsc protection limit is 1 million, for 6 months upon large deposits. For certain circumstances including property transactions.
Which may or may not make your decisions easier.

My parents are in a this situation whilst moving houses so the money will be in their account for a couple of months before the house they are moving into completes, in the event of the bank going bust, what evidence would need to be supported about where the money came from (I'm assuming proof from solicitor / Land Registry?)

[jimwilli]

I wouldn't bother with premium bonds. You could get high 2% easy access savings. The 'premium' for being in with the chance if winning a million is starting to look expensive. You probably be better off going for a couple of high interest accounts and buy some lottery tickets with the surplus! Sainsburys have a 3 access account paying 2.75%

[Rob_125]

jimwilli said:

I wouldn't bother with premium bonds. You could get high 2% easy access savings. The 'premium' for being in with the chance if winning a million is starting to look expensive. You probably be better off going for a couple of high interest accounts and buy some lottery tickets with the surplus! Sainsburys have a 3 access account paying 2.75%

Depends if you're going to pay 40% tax on the interest though, in which case PB may appeal.

[jimwilli]

Good point. Although tbf at present you're prob still better off paying the tax. Surely nsi will up the rate soon

[twohoursfromlondon]

Stuck a few quid in here myself, albeit it may not offer the flexibility you possibly require.

https://uk.virginmoney.com/savings/products/1_year...

[lizardbrain]

Sounds like it's safe, but I would consider HL active savings account, let's you split funds between various banks from the same interface.

I think there are other services that offer similar too.