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  • FIRST POST
    • Max Hughes
    • By Max Hughes 5th Dec 17, 1:54 PM
    • 3Posts
    • 1Thanks
    Max Hughes
    Claim Settlement Help
    • #1
    • 5th Dec 17, 1:54 PM
    Claim Settlement Help 5th Dec 17 at 1:54 PM
    Hello everyone,

    I'm about to receive a generously large sum of money due to a personal injury claim for an accident I had last year.

    Its almost certainly enough for my wife and I to buy our first home.

    The trouble is I have never had access to such large sums of money before and I'm at a complete loss as to what to do with it until we use it. (nicer problems to have)

    Naturally I've looked at savings accounts and the various types however, we probably aim to have bought the house (hopefully) say in 6 months time. What should I do with the money until then? Sit in my current account?

    You may be able to tell iv'e never been in such a fortunate financial position and probably won't ever again. I want to get it right first time.

    Thank you all in advance.

    Max
Page 1
    • MallyGirl
    • By MallyGirl 5th Dec 17, 1:59 PM
    • 2,098 Posts
    • 6,974 Thanks
    MallyGirl
    • #2
    • 5th Dec 17, 1:59 PM
    • #2
    • 5th Dec 17, 1:59 PM
    Take a look at this link - especially point 2

    https://www.moneysavingexpert.com/savings/safe-savings
    I'm a Board Guide on the Debt-free Wannabe, Loans & Credit Cards boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Board guides are not moderators and don't read every post. If you spot an inappropriate or illegal post then please report it to forumteam@moneysavingexpert.com
    Any views are mine and not the official line of MoneySavingExpert.com.
    • Linton
    • By Linton 5th Dec 17, 2:03 PM
    • 8,636 Posts
    • 8,611 Thanks
    Linton
    • #3
    • 5th Dec 17, 2:03 PM
    • #3
    • 5th Dec 17, 2:03 PM
    How much money? The amount will affect your options.

    If it's a very large amount of money a reasonable option is NS&I Direct Saver paying 0.95% interest. This is fully guaranteed by the government and provides better interest than the high street banks.
    • Max Hughes
    • By Max Hughes 5th Dec 17, 2:15 PM
    • 3 Posts
    • 1 Thanks
    Max Hughes
    • #4
    • 5th Dec 17, 2:15 PM
    • #4
    • 5th Dec 17, 2:15 PM
    Take a look at this link - especially point 2
    Originally posted by MallyGirl
    This is helpful thank you. I was worried about the £85,000 cap.

    How much money? The amount will affect your options.

    If it's a very large amount of money a reasonable option is NS&I Direct Saver paying 0.95% interest. This is fully guaranteed by the government and provides better interest than the high street banks.
    Originally posted by Linton
    Six figures. Is it worth placing it in savings for such a short amount of time? Is interest paid monthly?
    • Aegis
    • By Aegis 5th Dec 17, 2:24 PM
    • 4,794 Posts
    • 2,917 Thanks
    Aegis
    • #5
    • 5th Dec 17, 2:24 PM
    • #5
    • 5th Dec 17, 2:24 PM
    It's definitely worth putting into savings while you make the decision, however as long as you decide to do something within six months of the payment being made to you the £85k limit is waived - your entire deposit is covered. This is under the Temporary High Balance regime:

    https://www.fscs.org.uk/what-we-cover/questions-and-answers/qas-about-temporary-high-balances/

    Set a reminder for five months' time and make sure to move the funds to NS&I at that point if you haven't already bought your house.
    I am an Independent Financial Adviser
    Anything I say on the forum is for discussion purposes only and should not be construed as personal financial advice. It is vitally important to do your own research before acting on information gathered from any users on this forum.
    • Linton
    • By Linton 5th Dec 17, 2:38 PM
    • 8,636 Posts
    • 8,611 Thanks
    Linton
    • #6
    • 5th Dec 17, 2:38 PM
    • #6
    • 5th Dec 17, 2:38 PM
    ........

    Six figures. Is it worth placing it in savings for such a short amount of time? Is interest paid monthly?
    Originally posted by Max Hughes
    £100K at 0.95% for 6 months = about £500. You would get the interest pro-rata'ed. Have a look at the link. It's not a lot of money but better than virtually nothing which is what you would get elsewhere with that amount of money without taking any risk.
    • Max Hughes
    • By Max Hughes 5th Dec 17, 2:47 PM
    • 3 Posts
    • 1 Thanks
    Max Hughes
    • #7
    • 5th Dec 17, 2:47 PM
    • #7
    • 5th Dec 17, 2:47 PM
    This is all great advice thank you.
    • Eco Miser
    • By Eco Miser 5th Dec 17, 4:11 PM
    • 3,226 Posts
    • 2,989 Thanks
    Eco Miser
    • #8
    • 5th Dec 17, 4:11 PM
    • #8
    • 5th Dec 17, 4:11 PM
    If it's a very large amount of money a reasonable option is NS&I Direct Saver paying 0.95% interest. This is fully guaranteed by the government and provides better interest than the high street banks.
    Originally posted by Linton
    Birmingham Midshires (part of Lloyds) is paying 1.45%.
    Eco Miser
    Saving money for well over half a century
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