Money from selling property

Jacqui_Sinclair

Hi

I am in the process of selling my flat and want to be a cash buyer when I buy again. In the meantime can I insure the money I get so that it is safe while looking. It will significantly above the £85K guaranteed

PasturesNew

Get several accounts, £85k in each.

bowlhead99

If you're just looking for peace of mind for the short term rather than maximum interest: National Savings and Investments do income bonds at 1.26% AER up to a million, interest paid monthly, no penalties for withdrawal. As they are government backed you don't need to worry about the industry compensation scheme and 85k limits.

If you shop around, you can beat that rate but would have to put a max of 85k into lots of different institutions if you're using UK banks and want compensation if they go bust.

Daniel54

NS&I has an unlimited guarantee from the government ( so not limited to £85k)

For a short term home,this will keep your money safe

( just seen Bowlhead has said the same -and he (amost always ) speaks words of wisdom)

Perfect2

What are the chances of people losing their money if a bank goes bust? no depositors lost their money in the last financial crisis. And that was perhaps a once in a generation event.

Are there any examples in the last 30 years of ordinary depositors losing their money as a result of a banking failure in the UK? I can't think of any yet on here people on here obsess on FSCS protection like depositors loose out as a result of banking failures all the time.

mike88

Perfect2 wrote: »

Are there any examples in the last 30 years of ordinary depositors losing their money as a result of a banking failure in the UK? I can't think of any yet on here people on here obsess on FSCS protection like depositors loose out as a result of banking failures all the time.

No. But................. The Labour government at the time, when banks were going bust, decided to payout to those savers who had in excess of the compensation limit on the grounds that very few people knew about or understood the compensation arrangements. I had well over the limit in Icesave so was one of the lucky ones. However, the Conservative opposition objected to this. I believe whichever future government is in post cannot use the same justification.

Everyone should now know about the compensation arrangements so there is now no excuse not to ensure that savings in any institution do not exceed the FSCS limits.

Of course NS&I are not restricted in the same way and is an excellent place to deposit large sums for those who don't want the hassle of opening multiple accounts.

lozzy1965

Depends how long you might be out of the market for. NS&I, though safe, are not a good return, so inflation will eat away at your money. Not an issue in the short term, but possibly longer term...