deposit account?

kaytlee

Hi I'm a newbie to the site and I've looked through some of the other postings and found good advice but would like to ask for advice on what to do in our situation. We are in the process of selling our house and intend to live in Spain with a view to moving permanently. We will be renting a property for at least 12 months and will have approx £100,000 to put into a bank account for that time. We have been to a couple of banks today and they were quite dismissive because we do not want to invest our money, but want to make our money work for us the best way we can. Any advice about what bank account would be the best will be very gratefully recieved.

Ian_W

As you're going be out of the UK and therefore not tax payers for 12 months I don't think you can use ISAs but you should contact your tax office and see if you can get the interest paid free of tax whilst you're abroad. I think you need to fill in a form R85 - if I remember correctly.
As the FSCS only covers about £35K in a particular bank/bs you may want to split it between 3. A&L DirectSaver is paying 5.8% with an easily worked around catch, HSBC online saver is 5.75% and ICESAVE is 5.7% - check best buys in Martin's saving article using the side menu.
As the BoE RATE may well change this week you may be best seeing how these react if it does before making any firm decisions. All the above accounts allow internet access [as do many others] so if rates are dropped whilst you're in Spain you can shuffle your money around electronically to try to keep on the leading rates.
HTH and do enjoy Spain.

kaytlee

Thanks Ian :beer: It is really difficult trying to decide our best options. It will be the first time we have had some money behind us and we need to make the right decision for it to make some money for us. If we are in Spain for 6 months I think we will pay tax in the UK, it is after 6 months that we will be classed as residents in Spain I may have to stop the house sale cos it's confusing working out how to sort the money:rotfl: Thanks again Ian for taking the time to reply