Sale of house money???

Julesmarket

We are in the position of having sold our house but can't find anywhere to buy at the moment so are thinking of renting for a while?? Has anyone done this and can you lt me know the pitfalls re the money? Did you spread it over several accounts? (£50,000 protection) The interest rates are so low at the moment I am not sure after tax if there will be anything left to pay the rent? I'm in a muddle!!!:eek:
Thanks for any advice!

G_M

the savings and investments forum discusses where to keep money.

tyllwyd

I agree that the savings board is a good place to start.

One thing to be careful of - make sure you keep all the paperwork for any accounts that you open, and if you close an account make sure you have paper copies of all your statements for that account before you close it, because once it is closed it might be very difficult to get statements again, and you might need them as proof of where the money came from when it comes to buying in the future (because of money laundering regs).

pmlindyloo

Hi

We have just done this!

We sold in August and now are in rented property.

We have done the following with our money:

1. Opened ISAs up to the limit.
2. Put £49000 in instant access accounts (this allows for interest - pitiful as this is) Used Martin's article about savings to choose the accounts)
3. Opened LLoyds Vantage accounts (see Savings forum for information on this)

We may move after 6 months so did not want to tie our money up for any longer. If you intend renting for longer you will get a better rate used fixed terms for saving.

We also worked out how much interest we would get and deducted the tax to work out the sum we would eventually get to pay the rent. Of course you don't get this until you remove the money so you need to budget for the rent.

A few words of warning. It is taking forever to open the savings accounts. For some ISAs and savings accounts you need to provide ID with current address. Of course after moving you only have paperwork relating to your old address. Plus, you may also need original copies of ID and you run out of these when opening multiple accounts! We also didn't realise we could only transfer £10000 per day from our particular bank without incurring a charge!

The whole process is taking forever. I never realised opening savings accounts and ISAs was such a long process. Oh and I nearly forgot. Opening online accounts involves their sending you endless passwords etc in the post which then adds to the time it takes. We are still in the process of this and in the meantime the house money isn't earning any interest at all!

Do post on the savings and investments board as previously advised. They're a helpful lot there. Also read up all of Martin's articles. You may find something we've missed!

Good luck!