Where to put money - between homes

emmiemac

Hi,

I'm about to complete on the sale of my flat in a week, and will be left with about 60 thousand after paying off the mortgage. My husband and I are house hunting in the area where he's been relocated to, but haven't found one yet. We've rented a house for three months till we find something.

I'm looking for somewhere to put this money until we find one to buy, am thinking it will be 2-3 months before we need it.

Can anyone recommend an account, I'm not really sure what I'm doing. I've looked at the ones Martin reccommends but they don't pay interest on a month in which a withdrawal is made so ideally don't want to lose interest when we empty the account again.

I'm also a bit concerned with what I read in the savings article that if a bank goes bust you only get back 90% of the first 35 thousand, would it be worth splitting the money between 2 accounts or is the risk too small?

Any help would be great

Robert_Sterling

HSBC 5.75% on Instant Access Savings Account

Ian_W

emmiemac wrote: »

I'm also a bit concerned with what I read in the savings article that if a bank goes bust you only get back 90% of the first 35 thousand, would it be worth splitting the money between 2 accounts or is the risk too small?

You get the 100% of the 1st £2K and 90% of the next £32K if memory serves me right so if you want 100% security get opening 30 accounts with different banks or bs's - but can you remember a bank going bust? You've probably more chance of being run over by a steamroller TBH.

Not all the accounts recommended lose interest for the month you withdraw, A&L DirectSaver and the one Robert mentions both do I think but ICESAVE, ICICI and several others mentioned don't. For the interest you're going to earn in 3 months I'd look for convenience over absolute best rate if I were you.

Robert_Sterling

I can remember a bank going bust.

elektra

I remember BCCI going bust as our computer firm had some dealings with the fallout.

http://news.bbc.co.uk/1/hi/business/3383461.stm