Proceeds of house sale - instant access no tax

[Hammersia]

I will shortly have 200k cash from selling my house, main residence so no CGT. I'm trying a new area so will rent for a bit, maybe 6 months, before buying, so I'd like to get a decent interest rate, minimise my tax liability (I won't need income from the interest), and keep it instant access so I'm ready to use it all for a deposit.

Is that just an instant access ISA? Should I split it between two banks for deposit protection?

I know there are some older threads about this when interest rates were minimal, but the interest rate landscape has changed a lot this year.

[smokey mow]

I’m definitely not an expert but in your position I’d be putting it in something like this

https://www.santander.co.uk/personal/savings-and-i...

[Jockman]

The other threads have been updated with accurate info.

In summary Santander 5.2% or Tandem 5%.

[Hammersia]

Jockman said:

The other threads have been updated with accurate info.

In summary Santander 5.2% or Tandem 5%.

Ah I see the other thread now - but -

Should I forget about maxing out ISAs etc. first?

[Jockman]

Hammersia said:

Ah I see the other thread now - but -

Should I forget about maxing out ISAs etc. first?

I’ve never had an ISA but from what I can see the rates are starting to become attractive especially to higher rate tax payers.

It would certainly make sense for you and your wife? to max out on the best ISA instant access rates first so long as the terms and conditions suit you eg limited to 3 withdrawals pa etc.

[supersport]

There seem to be some decent cash ISA rates at the moment, but of course £20K isn't really touching the sides of your pot, so you are going to pay tax.

There's also the NS&I 6.2 bond but it's tied up for a year.

[MaxFromage]

Have a read about gilts:

https://www.hl.co.uk/news/articles/what-you-need-t...

If you want no tax, then you'll need to forgo the 'instant access'. Though you can sell fairly quickly, but you are always open to some variation and the markets.

TN24 would do you until the end of Jan:

https://www.yieldgimp.com/gilt-yields

[Bobtherallyfan]

From FFSC website;

“FSCS protects temporary high balances in your bank account, building society account or credit union account of up to £1million for 6 months. The protection begins from the date the temporary high balance is credited to an individual depositor's account, or to a client's account on an individual's behalf” That gives you some peace of mind for 6 months.

[WayOutWest]

MaxFromage said:

Have a read about gilts:

https://www.hl.co.uk/news/articles/what-you-need-t...

If you want no tax, then you'll need to forgo the 'instant access'. Though you can sell fairly quickly, but you are always open to some variation and the markets.

TN24 would do you until the end of Jan:

https://www.yieldgimp.com/gilt-yields

Just to say we've done exactly what MaxFromage suggested above, using TN24 to hold house sale proceeds. Now 1 month in from buying and the capital gain is increasing in line with expectation.

[Hammersia]

OK sounds like a plan, ISA, premium bonds, possibly gilts.

And an Elise I think someone said.