100k to Invest for 3 Months

chelskigirl123

Hi,

My partner and I have just sold our flat and now have 3 months to find another place. Inthe mean time we will have 100k in the bank and therefore need to put it into an account that will work for us.

We are house hunting so may well need to access it for the sale but also we would like a safe investment which will return some interest. All suggestions would be greatly received.

Also, how does the interest work on these accounts and how much in pounds would we be likely to get. I'm afraid I don't really understand interest rates very well.

Thanks for your help!!

C

ReportInvestor

Hi Chelskigirl,

You don't understand interest rates and yet presumably you took out a mortgage?

Landsbanki's IceSave pays 5.2% pa and gives you instant access. For greater safety you could split the £100K into three accounts so that you are covered by the Financial Services Compensation scheme [just over 90% compensation on your first £35K] in the unlikely event of a bank crash.

Two of these accounts could be with Landsbanki - 1 for you and one for your partner.

The third account could be with Saffron BS - its e-Saver pays 5.15%.

If you needed the cash after three months & closed your accounts you would get £100K x 0.052 (the interest) divided by 4 (it's only a quarter of a year) = around £1,300.

Unfortunately the taxman would take 20% if you are basic rate taxpayers so you would be left with £1,040 net interest.