What to do short term >50k

patp

Hi,

We've inherited a lump sum and need to put it somewhere where it will generate interest in the short term while we decide whether to invest in a bigger house. It's >50k so to get FSCS protection needs to be in 2 accounts. It looks like the AA account at 3% is best, could me and my partner open separate accounts and thus get the full protection?

Many thanks

avalanche_3

How about some of the money in the Newcastle BS 3 year Bond at 4%
the money can be withdrawn without loss of interest at 90 days notice giving you the option of withdrawel for a house purchase or to move to a higher interest rate if the rates increase.

This account can be opened and run online or by phone, you don't have to be near a Branch which are only in the North East.

avalanche_3

Sorry I forgot to say you can get the protection by opening seperate accounts.

Or put some of the money in the AA and some in the Newcastle.

patp

Thanks, I hadn't thought of notice accounts. Three months is pretty acceptable, I can't see us needing to spend it that quickly, but can you withdraw without notice if you surrender the interest?

patp

avalanche wrote: »

Sorry I forgot to say you can get the protection by opening seperate accounts.

Or put some of the money in the AA and some in the Newcastle.

So two accounts in the same bank/BS in the same name would get protection?

D1zzy

patp wrote: »

So two accounts in the same bank/BS in the same name would get protection?

Protection is 50K per person, 100K for an acc in joint names
&
There is no loss of interest when you withdraw from Newcastle BS - you just have to give 3 months notice

patp

I see, so the 90 days is non-negotiable.

G_M

patp wrote: »

I see, so the 90 days is non-negotiable.

Yes.

So two accounts in the same bank/BS in the same name would get protection?

No. But you said "we've inherited...."
So 2 accounts, one in each name would get £50K protection each.
And 1 account in joint names, would get £100K protection.