Best place for 130k house money?

fivepound

I'm selling my house and the equity will be around 130K. Because there are no other houses at the market at the mo, I'm thinking of a short term rent so not to lose our buyer. These means I need to put the equity somewhere where I can get the best monthly interest and get it out in a reasonable time frame i.e 30 days. Any ideas? maybe ICE SAVE?:

I also have a 9 yr old son as well if I can use his allowence?

confused:

Madiba_2

Yep, IceSave, ICICI, anywhere really.

I, personally, would split the money up a bit, to minimise losses in the event of any Bank going pop.

Its extremely unlikely to happen, but it wont cost you anything to do it...

I max out at £35k per bank.

si1503

I wouldn't bother with the foreign banks. Stick to a UK bank, much safer. Bham midshires did have one of the best paying accounts, currently 5.45% gross I believe.

pbw

if i was in your position with 130k, these are the steps i would take...

3k in a bradford and bingley ISA paying monthly interest at 5.18% net
100k in A&L Direct Saver paying monthly interest at 4.40% net
27k in bradford and bingley eSavings account monthly interest at 4.18%

this would result in monthly income of...

£12.95 from B&B ISA
£366.66 from A&L DirectSaver
£94.05 from B&B eSavings account

giving a total of £473.66 income per month

as suggested above, i also don't feel comfortable with the foreign establlishments

Cannon_Fodder

I'd put the £3000 in NS&I for 5.80%. Its not monthly, but its an extra quid per month...and in April put another £3000 in it.

chesky369

Actually, pbw, you've totally ignored the tax which is automatically deducted from interest, so your monthly figure would go way down to £378. However, if you put it all in ICEsave, you'd get a monthly income of £494 after taking tax off.

pbw

chesky369 wrote:

Actually, pbw, you've totally ignored the tax which is automatically deducted from interest, so your monthly figure would go way down to £378. However, if you put it all in ICEsave, you'd get a monthly income of £494 after taking tax off.

i haven't ignored the taxing off interest at all. the rate of 4.4% for A&L direct saver is after 20% tax and so is the 4.18% from B&B

the interest from icesave is given on a yearly basis, whereas my suggestions give interest per month and are after 20% tax deductions.

fivepound

Thx for all the suggestions, As I am a 40% tax payer (many are these days thx to Gordon) I suppose it's better to put the savings in my wifes name as she has a part time job only and would pay 20%.

p.s how do the savings company know to take off 20% or 40%?

raider

pbw wrote:

the interest from icesave is given on a yearly basis, whereas my suggestions give interest per month............

And Monthly: http://www.icesave.co.uk/online-savings.html

StevieJ

They deduct 20% and you settle up the balance at a later date.