Maximising Lump sum

MissDC

Hi,
Have decided that after over 10 years, I'm going to sell my London flat. As you can imagine, I've made a lot of equity, and this will allow me to be debt free, and go on a none penny pinching trip around the world, which is my plan. Have weighed up the pros and cons, and even if I do return to London after my trip, I wouldn't want to move back to my flat, so it has to go.
When all is said and done, I have quite a high amount of debt and a mortgage, which I will clear, but I can easily leave about £90k for living costs/ another deposit, when and if I decide to return to the UK.
Have heard so many stories of people who have spent all their money and been left in pretty compromising financial positions as a result. Any ideas what to do with the £90k for safe keeping while I'm away? I don't want to 'lock it away', but I don't want easy access to it either. Having it appreciate would be ideal too, if possible.
Thank you

kidmugsy

Get as much as you can into high interest current accounts - Tesco, Santander, Lloyds group, TSB, Nationwide. Use standing orders so that everything works automatically while you are away - don't take unnecessary security risks of a lot of internet banking while abroad.

After that, how about ns&i? Premium bonds, say: though many people dislike the very idea, I'd think they might be a decent place to leave £40k that you don't want to access until you are back.

bigfreddiel

Ignore these multiple bank accts, direct debit schemes, just buy an all world etf's tracker eg VWRL and a long term gilt etf's VGOV say 80:20ratio, leave it to grow reinvest division, your return will beat everyone including experts
fj

Archi_Bald

bigfreddiel wrote: »

Ignore these multiple bank accts, direct debit schemes, just buy an all world etf's tracker eg VWRL and a long term gilt etf's VGOV say 80:20ratio, leave it to grow reinvest division, your return will beat everyone including experts
fj

This is good advice if the OP plans to travel for 7-10 years. Anything shorter, the multiple bank accounts and PBs are a fabulous idea.

MissDC

Thanks all, very new to all this (never has such a big lump sum before) ....I reckon I will travel for a year, maximum, so would need access to the money when I get back.

In terms of direct debits etc, I won't have any as I will clear debts and mortgage with the remaining equity. Thanks for the good advice about avoiding internet banking though

Archi_Bald

MissDC wrote: »

In terms of direct debits etc, I won't have any as I will clear debts and mortgage with the remaining equity.

You do not need "proper" DDs. Just open a Tesco Internet Saver or a Tesco Instant Access Savings account, or both. They will allow you to regularly pull in money (as little at 1p) from your own current accounts , at any frequency you can imagine. The pull-ins will be executed as DDs.

So don't discard deals that require regular DDs.

Suppose I should change my signature to... Tesco. Every little helps.....God I hate that slogan so badly, but I suppose there's a point to it because the DDs to the Tesco savings accounts are a real beauty..

MissDC

Archi_Bald wrote: »

You do not need "proper" DDs. Just open a Tesco Internet Saver or a Tesco Instant Access Savings account, or both. They will allow you to regularly pull in money (as little at 1p) from your own current accounts , at any frequency you can imagine. The pull-ins will be executed as DDs.

So don't discard deals that require regular DDs.

Suppose I should change my signature to... Tesco. Every little helps.....God I hate that slogan so badly, but I suppose there's a point to it because the DDs to the Tesco savings accounts are a real beauty..

..... I see, told you that I was new to this! Will I mention you so that you can get your commission when I apply?

gadgetmind

MissDC wrote: »

I reckon I will travel for a year, maximum, so would need access to the money when I get back.

Deposit accounts, which will struggle to keep up with inflation, are therefore your only option.

Archi_Bald

MissDC wrote: »

Will I mention you so that you can get your commission when I apply?

You can mention me but they wouldn't know me from Adam

gadgetmind wrote: »

Deposit accounts, which will struggle to keep up with inflation, are therefore your only option.

Err? Current accounts as kidmugsy mentioned are perfectly ok for some of the money.

The OP might even be eligible for gross interest - OP, google R85 to find out whether you are.

gadgetmind

Archi_Bald wrote: »

Err? Current accounts as kidmugsy mentioned are perfectly ok for some of the money.

Maybe, but even with SOs in place, it's a right lot of hassle for someone who wants to flit and forget.

Vortigern

MissDC should not rule out ISAs to accommodate £15000

You can't subscribe new cash to ISAs while not resident in the UK for tax purposes, but you can continue to hold one.