Safe temporary home for proceeds of sale of house

jjlandlord

For the next 6 months it's probably safer to keep 400k in a saving account at a major UK bank that to buy gold bullion with it.
Because the price of gold varies daily, that's a fact. However a major UK bank has only a tiny weeny fraction of a percentage chance of going under.
OP said they only want to keep the money for a few months, not long term.

It is a risk, however small and some people dont like to take risks.

True, but it is irrational because I bet you that in any given year we have a greater chance of dying in a car accident than witnessing our bank going under.
People seem to worry about the 85k limit all the time but never think twice before crossing their front door...

This means that it cannot be 'wiped' out by a computer crash, terrorism

I'm sure you realise that while your gold in Switzerland is indeed a physical asset, the record that it is yours is in the computer...

More to the point, this government backed 'guarantee' wont be worth the paper its printed on if more than a few thousand people at once call on it.

That's why major banks are not let to collapse but are bailed out/nationalised...
The government increased the guarantee from 50k to 85k to re-assure people, knowing full well that it is mostly theoretical.

googler

Bumping a random, recent thread to bounce the football spam off the first page

Beneficiary

Many thanks to everyone who has taken the trouble to offer advice.

We have not yet made our decision (or sold the house).

However in case anyone in a similar position reads this, the FSCS compensation is £85K perinstitution per trust and also £85K per institution per person. Ie the FSCS will notpay out more than £85K per institution per trust or per person.

NS&I offer what it claims is a safe home for funds up to £1,000,000. The interest rate isn’t great, but there is no £85K limit.

fairinvestment dot co dot uk lists organisations which provide trustee savings accounts.