Where to put £80k whilst we look for another house

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We are about to exchange contracts on our house sale. As we live in rented accommodation we are able to take our time over finding the right property. What would be the best account to put the £80k from our sale? We would need to be able to withdraw it when we find another house. Although there is no urgency to purchase just yet, after 12 years in military accom I am desperate to be back in our own house.

I also have just over £20k in a Santander cash ISA on terrible interest but am unsure whether it is worth moving it if we would then incur a penalty if or when we need it for a house purchase.

Would be very grateful for advice please.

Thank you in advance.

ChopperST

If you are looking for the funds to be liquid and not tie them up for a peroid of time you are looking at instant access savings.

Why not transfer (not withdraw) your 20k in your ISA to a 2011/12 ISA with instant access and earn around 3% AER (Halifax + current account would be 3.2% AER) and look at putting the remaining balance into an instant access savings account with no penalties on withdrawals.

Obviously if you are willing to tie the funds up for a period of time your returns would be greater. It just depends when you want to move.