Saving Following House Sale

Retired_and_smiling

I'm in the pleasant situation of nearing the completion of my house sale and will have something in the region of £400,000 to put aside for the winter months before I want to look for another house to buy next Spring. I'm going to house sit in the meantime. (Sorry you guys, who are at the other end of the financial string and are struggling.)
With Martin (MSE) advising putting no more than £35K in individual banking "families", I don't think there are 12 out there into which I can spread the money (12 x 35 K = 420 K).
What do you think is the best and safest way to keep the money, earn good interest and make it available in less than a year? :think:

merlinthehappypig

Both Northern Rock and NS&I are 100% guaranteed so the worry about spreading it around isn't an issue. NS&I tend to offer poor rates, but NR are usually quite competitive. You might get slightly more interest by spreading it around, but, having been in a similar position for the last 18 months, I can tell you that having a dozen or so accounts isn't much fun. Rates keep changing all the time so you feel bound to keep moving the cash around to get the best deal.

NR brought out a fixed rate 1 year account in January at 6.9% and we put most of it in there. A lot less stressful than spreading it around and just as safe. I don't think they offer anything quite as good now, but you won't lose out by much compared with others.

We've found them very good to deal with as well. The internet access is very good - the best of all the main banks, in our experience. When we had to close the 1 year (non-internet) account early to buy the house, they processed the closure and transfered the balance to our other account within hours of receiving the letter.

No connection with NR or any axe to grind, just pleased with the service, coupled with the Govt guarantee.

Retired_and_smiling

Thanks, Merlinthehappypig for your thoughts. Given me lots to think about. Even tonight's news about NR's problems may add credence to their "strength". Just waiting (and hoping)for the house sale to go through.

Retired and smiling :beer: