Where to put short term equity from house sale

Deuxbiers

Just about to complete on the sale of our house and will have a large sum from the equity to deposit somewhere whilst we wait to complete on the purchase of a new house. We have about 2 months to sit on the cash and obviously want to maximise on the potential interest.

All the current accounts and savings accounts have restrictions on either the amount of the initial deposit or the maximum amount the best interest rate will pay on. Either way nothing we've looked at so far is suitable for depositing a large sum of money for a couple of months.

Has anyone else ever had this problem and where is the best place to stick a large sum of cash for a short time.

Thanks in advance for any advice.

Scudlink

I was in exactly the same situation approx 2 years ago.

Whilst waiting for our new build home to be completed I shoved the sale proceeds from our old property into my Nationwide e-saver account for 2 months. It's an instant access account which must be linked via the Nationwide current account. I believe you can deposit up to 3million into this account. It generated just under a grand interest after tax. I think it cost me something like £35 for the solicitor to CHAPS the money into my Nationwide account and another £25 to CHAPS the funds back again before completion on our new home.

My solicitor tried to tempt me to keep the funds in their client account paying me a paltry 2% interest so I politly pointed out that I'll be getting a better rate elsewhere

lynzpower

Ive got mine in Isas and waiting for my Icesave to open. ( 5.75 on both)

if they are online accounts you can shuffle money about online easily.

Generali

You could buy (index linked?) gilts that mature around the date that you'll need the money. It's lower risk than a cash deposit in a bank and you'll get a similar rate of interest. If you choose bonds that are close to maturity then the value of them won't be much affected by any interest rate changes.

Deuxbiers

Thanks everyone for the advice. We'll probably go with Scudlinks option of sticking it in the Nationwide and reap some interest.

Cheers