What to do with house sale cash while waiting for dream home?

MaxBruno

Hi all,
Think the title says it all really.
We have sold our home and are moving into rented, til we find the perfect place. Should £250,000 just sit in a bank account earning virtually nothing - as we might need to get quick access to it??

I hope you guys can come up with a better suggestion!!!

Thanks
Max

mynameisdave

Nationwide offer an instant access E-Savings plus account that pays 2% gross and has a limit of something like £3,000,000

I'm sure there are probably better instant access accounts that pay more that you coul dumo the £250K in. Obviously 1, 2, and 3 year bonds would pay more but then you can't get at it quickly if you need to.

westlondonbuyer

I'm very risk averse so may well be over-reacting, but I'm a big believer in not putting all your eggs in one basket. I'm also conscious of the need to have the money fairly readily accessible in case we find the house of our dreams. I have our sale proceeds in multiple bank accounts, plus National Savings and Premium Bonds. I've other investments, but chose to keep the 'house' pot separately. It probably isn't a great financial strategy, but I can sleep at night.

whitesatin

We will be in the same position this week, getting the cash into the bank direct and it will be cleared funds as we are paying extra for an electronic transfer. Immediately I will be transferring it into several instant savings accounts plus premium bonds until such time as we need it.

des_cartes

whitesatin wrote: »

We will be in the same position this week, getting the cash into the bank direct and it will be cleared funds as we are paying extra for an electronic transfer. Immediately I will be transferring it into several instant savings accounts plus premium bonds until such time as we need it.

Well done to you and the op for getting out of the housing market. Remember even getting low interest on your proceeds from sale means you are improving your chances of getting your dream home as prices are now falling.

G_M

Go over to the Savings forum - lots of guys there discussing savings and investments options!

fraser

i got a bit twitchy having it in one place as a lump sum, so split it up over various british banks

or you can put it all into National Savings as it is backed up by govt

the key thing is fast access this does not make it easy to earn market leading interest rates

sinbad182

des_cartes wrote: »

Well done to you and the op for getting out of the housing market. Remember even getting low interest on your proceeds from sale means you are improving your chances of getting your dream home as prices are now falling.

Say that enough and it might actually happen!

iB1

Put it on a dead cert horse!

paddedjohn

ive got a shoe box under my bed if you want me to mind it! i wont charge you a minders fee and if should be quite safe (fingers crossed)

littlephoenix

do you guys have CD accounts? not sure how it works where you live !!!