Proceeds Of House Sale

Lil_Piggy

I am just about to complete on the sale of a property that was left to me by a family member.
The proceeds will be in the region of £120,000.

I plan to then put my own property up for sale, and ultimately combine the 2 proceeds to buy a new property.

I am looking to save the £120,000 for a period of approximately 12 months, in which I will then be looking to use it for a property purchase.

Can anyone give me any advice on where to save this. I will of course consult a financial advisor over the next week or so.

ColdIron

What are your objectives other than (presumably) easy access?
Safety and simplicity, maximising returns etc?

For £120K over a year I would suggest that consulting a financial advisor is not necessary

xylophone

I will of course consult a financial advisor over the next week or so.

You are saving rather than investing so why would you wish to do this?

If you want to keep the money in one place and without risk, you might consider NS&I.

You could use a combination of the income bonds and the cash isa.http://www.nsandi.com/savings

Or you could spread the money around interest paying current accounts, ISA, other savings accounts etc.

ManofLeisure_2

Lil_Piggy wrote: »

I am just about to complete on the sale of a property that was left to me by a family member.
The proceeds will be in the region of £120,000.

I plan to then put my own property up for sale, and ultimately combine the 2 proceeds to buy a new property.

I am looking to save the £120,000 for a period of approximately 12 months, in which I will then be looking to use it for a property purchase.

Can anyone give me any advice on where to save this. I will of course consult a financial advisor over the next week or so.

A family member was in a similar situation fairly recently and decided to invest a sum of money (max amount) into Premium Bonds. A few months later she won a sum of money that exceeded her investment. Lucky maybe - but might be worth a punt .

About_Time_2

Hello, apologies for the hi-jack but I am in a similar situation. I currently have £150,000 sitting in my current account and do not need to access these funds for at least 12 months.

I intend to save the funds for this period of time and am at a bit of a loss as to what my best options are. My current provider, halifax has offered a 6 month for 1.2% or a 12 month for 1.4%. It was put to me that these are solid accounts but they do not sound that hot to me.

Aside from my current account I have maxed out my ISA with halifax.

Any help is greatly appreciated.

eskbanker

About_Time wrote: »

My current provider, halifax has offered a 6 month for 1.2% or a 12 month for 1.4%. It was put to me that these are solid accounts but they do not sound that hot to me.

What is your benchmark for what would be considered hot?!

Given the similarity between your situation and OP's the recommendation given in post #3 above applies equally to you - keeping more than £85K in any institution (other than NS&I) goes beyond the FSCS guarantee so is an avoidable risk, i.e. it would be advisable not to keep it all with Halifax.

Archi_Bald

No bank is "solid" above £85K per person. NS&I is the only place where you don't need to watch the £85K limit.

About_Time_2

Thanks for the reply.

Ok, this is all new to me, especially the FSCS guarantee. Everyday is a learning day.

I've had a look into NS&I and am not convinced I am making the most of my 150k savings. Again this is only for a 6-12month period.

I have a £10k ISA with Halifax, so I believe I can put another 5k there in a month.

I am only allowed one £40k premium bond @ 1.30% with NS&I.

At this stage I am left with £100k, would it be best to put this in the NS&I direct saver? Being honest this some would only be saved for a period of 6 months before I withdraw it.

Again any help is greatly appreciated.

Archi_Bald

PBs do not guarantee 1.3%. It's just an average. Some people get more, some less. It's just a lottery but you get your capital back (minus inflationary losses, of course).

NS&I Direct Saver or what they call it is by a long way the easiest for your circumstances. You won't get lots of interest, but you won't get that anywhere else these days, either. With the exception of some of the interest paying current accounts, but you'd be lucky to find homes for £40K, and it's a lot of work for just a few months, with not a lot of real £££ to show for.

About_Time_2

Thanks for the info, few things to take on board and consider the hassel.