£180000 short term interest

tgon

Never lose your house buyer! Okay, so if my purchase dosent happen then I've £180,000 balance left to see if the interest will pay for short term rental until the right house comes along. How can I see if this option is viable? Thanks in advance.

joerugby

The best deposit account rate you are likely to find (Cov BS and Britannia) will give you about 1.5% gross which will pay £180/mth net of basic rate tax on £180,000 or less if you are a higher rate taxpayer

That might be enough to rent a room

jd87

Some decent accounts offer 3% interest, but usually with a maximum balance (eg. Santander 123 account max is £20000). If you could find enough accounts to spread your money across (I doubt you can) then 3% annual would be something like £400 a month. Can you rent somewhere for that? Depends where you live.

Archi_Bald

As a sole depositor, you wouldn't want to put £180K into a single financial institution because you could easily lose £95,000 of it overnight.

You need to either spread the cash across more than one financial institution, or put the lot into an NS & I Direct Saver at 1.1% gross which is safe for the full £2m it allows as max balance.