£400k to invest for 6 months???

M3TTB

Afternoon all,
I'm just after a bit of advice really and some sound financial know how. I've just had an offer accepted on a house and we will be hopefully moving in at the end of the year. Due to the fact it is currently let until the end of November this won't happen any sooner.

All of this means that the deposit I have for the house circa £400k is currently sitting in a standard savings account earning not very much. So I can afford to move or invest this until I complete at the end of November. My question is where is best to move it to get the maximum I can? I opened an ing saving account as I thought this had the best rate but did not realise that only the first £100k gets the 3% rate and the rest is just 0.9%? Seems a bit of a con really.

Anyway, advice or opinion is appreciated and welcomed.:T

All the best,

Matt:)

donkingkong

http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#easy

noodle

Assuming you do not want to take any capital risk, the easy option is just to slice it into safe chunks (i.e. within the government savings guarantee of c£85k) and go for the best 5/6 savings account rates you can find. Any non-retail options will involve a degree of risk (albeit potentially very small, assuming you opt for a fixed interest/deposit option) so, given the overall relatively short period of 'investment' it may not be worthwhile for the extra that you will make. Furthermore, as you have no inflation risk (the price of what you're buying is already fixed) whatever you make is cash in your pocket.

Your return is going to be low... but you're not doing anything other than saying 'you can use this money for a very short period of time, and you're not allowed to put it at any risk whatsoever'. You're getting a bit of money for nothing, so maybe 2 percent (which would still mean £4k gross) isn't bad? You might think that 0.9% ifrom ING for £100k+ s 'a bit of a con'.. but banks don't want to attract that level of money on such an insecure basis (i.e. it can be withdrawn at any time) because it's not much good to them. It's not what such accounts are designed for.