What to do with a large deposit for a few months

stateschoolteacher

Hi,

I'm just about to complete the sale of my house and will be left with approx £300K from the sale. I'm going to buy another house but won't complete for another 3 months and I would love some advice on how to make the most of my temporary riches.

Cheers

AJ

lollymary

We were in the same situation and put our money in the Santander branch saver account, went to get it when we found a property and they wouldn't give it to us.!!!took four hours of wrangling to get our own money back. Be warned.

Marco12452

Depends on how quick you will need it. Assuming you will be actively looking for a new home and require it within a year, you will not be able to take any of the extended higher rate options. Also assuming you will have enough notice from having an offer accepted it would be worth getting that little bit extra interest arned from perhaps chosing a notice account. Moneysupermarket.com has a leading rate of 3.05% for this type of account and requires 30 days notice for withdrawal. This should give time to give the notice between making you offer and exchanging contracts. The account is managed online though, so you would need a donor account, this would likely be a current account from any bank.
This still doesn't meet RPI though, so you would lose money in real terms, but it is a best bet as there is likely no short term option to give you a better rate.

http://www.moneysupermarket.com/savings/notice-accounts/