Excess cash whilst between houses

[Neptune188]

Bear with me - i've not had to do this before.

Currently going through divorce.

Ex has agreed to buy me out of house.

I'm planning on renting for 6-12 months. Income from main employment covers planned spend on bills etc.

What do you do with circa £150-£170k that you don't expect to need for 6-12 months? Whack it in a savings account? Short Term investment (i'm out of ideas on this, need advice).

It doesn't need to double in value, just be sat somewhere safe.

[Petrus1983]

I had a similar situation to you when moving as the new place wasn't ready - there's a handy thread - I'll try and find it for you.

ETA -
Here you go -

https://www.pistonheads.com/gassing/topic.asp?h=0&...

[alscar]

£50k in Premium Bonds , £ 50k in highest rate instant access savings account you can find , remainder £50/£70k in notice period savings account.
All 100% safe.
6-12 months period way too short for " investments " per se and obviously no guarantees.

[BoRED S2upid]

alscar said:

£50k in Premium Bonds , £ 50k in highest rate instant access savings account you can find , remainder £50/£70k in notice period savings account.
All 100% safe.
6-12 months period way too short for " investments " per se and obviously no guarantees.

This.

You need to split it over several accounts and I’d definitely max out PBs for a few draws just in case! Someone has to win £1million every month.

[alscar]

BoRED S2upid said:

This.

You need to split it over several accounts and I’d definitely max out PBs for a few draws just in case! Someone has to win £1million every month.

Should have added just make sure that the instant and notice accounts are with different institutions that way each fully protected otherwise £85k max.

[Neptune188]

Thanks, everyone. Confirmed my suspicions.

I'm half tempted to use a chunk of it in the business as working capital (sole trading at the minute). Traditionally that's always exceeded 5% returns i'm likely to get anywhere else...

[frisbee]

There is an exception to the £85k limit for temporary high balances following events like house sales.

[alscar]

Indeed but only for 6 months.

[MaxFromage]

Depends on your tax rate. If you're a higher rate taxpayer (and even if you're not), gilts should be considered:

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

[Richard-D]

Some terrible suggestions in this thread. Wouldn't that amount buy a nice 458 Italia?

[mark seeker]

MaxFromage said:

Depends on your tax rate. If you're a higher rate taxpayer (and even if you're not), gilts should be considered:

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

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This would be my thoughts too if you want limited risk, look at the TN25 maturing end of January 2025 or TG25 maturing June 2025, these options fit around your time horizon and would involve you only paying a small amount of tax on the coupon (rather than just depositing in a bank). This option would be better if you are a higher rate tax payer in this respect.

Do you own due diligence though of course.

[Neptune188]

Thanks for all the advice.

Higher rate tax payer (just) thanks to a he day job and will be going back into self assessment next year due to business (currently sole trading but likely to go Ltd Co again next year).

There’s half a temptation to lump half somewhere safe for 6-12 months and use the other half as business cash.