safe way to save equity from house sale?

blackswan_3 · 16 September 2008 at 4:13PM

All being well, we will have sold our house by the end of next month and are going to rent for a year or so and will have a few hundred k equity until we next buy.
Obviously want it to be super safe, decent interest (to help pay the rent) and available with, say a month's notice.

I plan to put 7k into cash ISAs for both of us - can you do the kids too? - after that not sure ....

Probably should put some, or maybe all, of it into NS&I - if not all then put the rest into savings accounts in British based banks upto a limit if £35k per person per bank (apply to kids as well or treated as parents?).

Or maybe I could put some into a bond, but maybe these aren't flexible enough. then again perhaps I should just put it under the mattress.

Apart from the mortgage I am normally neither a saver nor a borrower so don't know much about the saving options so any comments welcome :-)

Stavros_3 · 16 September 2008 at 4:19PM

Northern Rock E-saver paying 6% and all the amount is 100% safe. Max limit 250K per person. You have the option of monthly or yearly interest and no penaltys for taking your dosh out

blackswan_3 · 16 September 2008 at 4:34PM

thanks Stavros, that sounds a good option because it would be a pain to squirrel the money away in 10 different accounts, on the other hand I see that you can get 6.5% on some accounts, which wouldn't normally bother me but on this sum of money that could be 3k difference over 1 year ... well £1800 after tax I guess.

On which subject I am a higher rate payer, but my wife is a part-time teacher so obviously I'd need to make sure to use her full allowance for the interest earned.

Also for simplicity I guess we could use joint accounts in some degree to get £70k guarantee ... but after ensuring my wife uses her allowance.

Stavros_3 · 16 September 2008 at 4:47PM

A good strategy, to put 70k in the higher account in joint names but remember you'll be paying 30% interest on the savings. If you decide to go with N/R I would advise you to open the account in your wifes name as you'll then only be paying 20% If you can trust her not to run off :rotfl:

ian-d · 16 September 2008 at 5:36PM

Stavros wrote: »

A good strategy, to put 70k in the higher account in joint names but remember you'll be paying 30% interest on the savings. If you decide to go with N/R I would advise you to open the account in your wifes name as you'll then only be paying 20% If you can trust her not to run off :rotfl:

hehe, was going to add, how much do you trust your wife

safe way to save equity from house sale?

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