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40k for v. short time, where to put it?
Fay
Posts: 1,034 Forumite
We have just sold our house-complete next friday, and we will be left with nearly 40k. The house we want isn't ready yet, and the solicitor said that we need to have the money back they don't hold it. So what should we do with it?
we have no idea how long we will have it for...1 month minumum, forerver maximum! We already have an instant access savings account with HSBC, but I'm guessing this might not be the best place to put that much money?
any advice would be very gratefully received
we have no idea how long we will have it for...1 month minumum, forerver maximum! We already have an instant access savings account with HSBC, but I'm guessing this might not be the best place to put that much money?
any advice would be very gratefully received
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Comments
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£25K A&L online saver 5.35%
£15K Bradford & Bingley eSavings account 5.25%0 -
Yes, only real advantage in using HSBC savings is that you can move between accounts 'instantly' if you have on-line banking. Only half-decent interest rate is the online saver which is 4.70% but there is a catch - you don't get any interest for an entire month if you draw out any cash (so ok if you'll definitely need it on the 1st of whatever month..).
Have a look here http://www.moneyfacts.co.uk/menus/main/selections_savings.htm and check out 'no notice' and internet accounts. May be best to go for an account with a bonus for a few months - these are usually the highest rates and you can always move it on if it's a long wait for the house (hope not!)
Alternatively, if you have handy Building Society branches start here http://www.building-societies-uk.co.uk/ to see if they have a web site for checking branch/passbook interest rates.
Only other thing worth mentioning is that you can only move up to £10k per day from a HSBC current account via online banking (although there can be ways round this, depends on the target account), so think about where you want to pay the cheque in.0 -
Grumbler, is £25k the maximum you can hold in A&L online account. I thought it was the max you could transfer in a transaction.0
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Online Saver :Cagey wrote:Grumbler, is £25k the maximum you can hold in A&L online account. I thought it was the max you could transfer in a transaction.
'Maximum balance: £25,000 per account'0 -
Thanks for the info guys. But if I put the money into 2 accounts it would mean that I would need to pay 2 lots of transfer when I have to send it back to the solicitor wouldn't it!
I'll have a look into the A&L one though
Edit: how much interest could I expect to earn if the money were only in the account for say a month? Would it be worth me setting an account up for that period?0 -
£40,000 * 5.35% is £2,140 per annum before tax so one month should be one twelfth of that - approx £178.Fiscal drag, that's my problem. Too many people dragging on my fiscals.0
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Hi, Fay,
It could be worth asking your bank/building society whether they offer a money market account. This is a fixed term, fixed rate account but the term can be as short as seven days, and it can be rolled over automatically ( and for anyone with more than £50000 to invest the interest is paid/rolled over gross...). The rates I have been offered in the past have been competetive, rather than outstanding, but given that your first priority is ease of access, this might be worth considering.
HTH
Cheerfulcat0 -
If you know the deadline well in advance you can spread transfers overe a few days and pay nothing.Fay wrote:... if I put the money into 2 accounts it would mean that I would need to pay 2 lots of transfer when I have to send it back to the solicitor wouldn't it!
You can also consider something new: ICICI Bank HiSAVE 5.40% AER0 -
Thanks guys, lots to think about.
We have now put an offer in on a different property which has been accepted, so fingers crossed if everything goes ok our solicitor said we could be looking at as little as 3 weeks 0
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