life changing money

dobo

My husband had a works injury a year ago where he lost 3 toes. He has now been awarded (told) the compensation he will receive.

£110,000 - Payment 1
£75,000 - payment 2 (4 months later)

My plans are it is enough to pay off all the debts £20,000, then buy a house outright or with a small mortgage dependant on the house.

My trouble is though, I don't know what to do with the money until we find a house & pay off the debts.

I know I can not tie into any fixed term deals, as I do not want to miss out on a house whilst waiting for the term to expire.

This is physically making me ill with worry - as it is such a large amount for us, and the difference between a really good life or not.

Please help.

Farway

Given the amounts you would probably be best to split it between two non linked bank's savings accounts, because the Government compensation scheme only covers up to 50K

You obviously require instant or minimum notice access to the money, so it comes down to highest, or near highest interest rates available, if you look on Martins savings guide [top of page, banking & saving] you will be able to get the best available for your circumstances

There really is no need to make yourself ill about it, honestly it is very straight forward once you have the end goal defined

Best of luck

advent1122

dobo wrote: »

This is physically making me ill with worry - as it is such a large amount for us, and the difference between a really good life or not.

Please help.

Yeah I know. Having £185,000 in the bank would "physically making me ill with worry".

Jeese.

missile

Sorry to hear of your DHs injury. I am quite surprised you are receiving a payout after only 1 year.

Try not to get stressed out. If I were you, I would put the money in a high interest savings account. I would not worry too much about bank going broke. Don't get too hung up over a few points interest, be aware that an extra 0.1% on £110,000 is only £110 minus tax over 12 months.

Take some time over choosing the right house. It is big decision and a lot of money. You need to make the right choice.

soulsaver

Farway wrote: »

Given the amounts you would probably be best to split it between two non linked bank's savings accounts, because the Government compensation scheme only covers up to 50K

You obviously require instant or minimum notice access to the money, so it comes down to highest, or near highest interest rates available, if you look on Martins savings guide [top of page, banking & saving] you will be able to get the best available for your circumstances
Best of luck

Joint account would give cover for £100k, so 2 joint accounts in unlinked banks & you're safe as, er, money in the bank...
Go for the top paying instant access in the bank accounts list should get you c. 3.3%, and next one down on the list. No prob, sleep tight:)

ses6jwg

ING Direct pays around 3.2% and pays monthly, which is quite attractive, as you dont have to wait a full year for the interest to come through, especially as youre not sure how long youll be stashing it. Its also easy access and links to a current account.

I'd say 50k in there would probably be a good call.

Sceptic001

missile is right to urge you not to get stressed out, but I would recommend that you do not put more than £50k into any one bank, then you don't need to stress out.

Also don't worry about the odd 0.1% difference in rates, but the difference between the best instant access account (3.3%) and the worst (0.1%) is huge, so it is worth spending a few minutes deciding which to go for, and to check rates regularly (once a month, maybe). MSE or moneyfacts have lists of the best buys. Anything over 3% is good. Happy house hunting.

evenasus

advent1122 wrote: »

Yeah I know. Having £185,000 in the bank would "physically making me ill with worry".

Jeese.

Why so?

It should make you feel comfortable at least.

Lokolo

evenasus wrote: »

Why so?

It should make you feel comfortable at least.

advent was being sarcastic.

evenasus

Lokolo wrote: »

advent was being sarcastic.

What a wally I feel now.

Didn't see the 'Jeese' till just now.