Where to put £130k

Lady_Tara

Hi, new to this board as we've never got any money usually!

Background: Due to our house sale completing last week but purchase falling through we have got an unexpected amount of money which is the proceeds from the sale that we need to keep safe somewhere. Due to the trauma of the purchase falling through we have decided to rent, so we shouldn't need to access this money for a year, as it will only be used as part payment for the new house when we decide to find one.

Any suggestions where is safest with a decent(!) interest rate we can put it? We are tax payers and do not have ISAs currently.

Thank you:)

mandragora_2

http://www.which.co.uk/money/savings-and-investments/reviews-ns/best-rate-cash-isas/

http://www.moneysavingexpert.com/savings/best-cash-isa

ColdIron

If you are looking for the safest place as you say, you can't beat the NS&I direct saver
http://www.nsandi.com/savings-direct-saver
The interest rate isn't the best at 1.5% but with rates falling elsewhere it may be what you are looking for

Lady_Tara

Thanks for your replies

kidmugsy

"Due to the trauma of the purchase falling through": trauma? Aren't you being a bit precious?

EdGasket

I should invest the lot in Greek and Spanish bonds <-- joke!

For best protection, spread the money over say three accounts with different banks/building societies and also put the maximum you can (£5,640 each) in an ISA each. See:

http://www.nsandi.com/you-and-your-money-savings-made-simple-important-considerations-how-safe-are-my-savings

I'm not sure if all money is guaranteed in nsandi or only the £85K as with other institutions. It is not impossible that the UK could get into trouble like Greece and Spain and then any government guarantee would go out the window. So I would always opt for spreading the money around a little.

UPDATE: it says here that your money is 100% secure:

http://www.nsandi.com/why-save-with-us

....assuming you believe the government that is.

EdGasket

kidmugsy wrote: »

"Due to the trauma of the purchase falling through": trauma? Aren't you being a bit precious?

No I've also been through it; it can be extremely stressful and put a great strain on relationships too if you and your partner disagree about how things are going/what to do.

Lady_Tara

kidmugsy wrote: »

"Due to the trauma of the purchase falling through": trauma? Aren't you being a bit precious?

Well it's been traumatic enough to me as we are homeless! Have spent 3 nights on relatives floors and 4 nights in a room at a service station on the A50, and most of our possessions are split between 3 locations. Impact on the kids is not the best either, but thanks for your kindness anyway.

xylophone

"Due to the trauma of the purchase falling through": trauma? Aren't you being a bit precious?

Moving house is a high stress event - being let down at the last minute especially if there are children to consider, must be enough to send anyone's blood pressure soaring?