short term investment and security

conned_2

I need advice on protecting the value of the cash from the sale of two houses whilst I find and purchase a London flat.
I live in a house which is almost ready for sale, and I can move in with my partner. I am about to inherit a house which I also intend to sell, using the proceeds of both sales to fund a flat in London which we can use as a city base/ short term investment/ rental income.
My problem is that the two house sales are unlikely to be happening at the same time, and I will have two lots of £200,000 to protect for a period of several months or longer whilst I complete the purchase of a London flat.
I would like to protect the value of the money and also ensure that it is safe from any bank collapse but also accessible for my flat purchase. I realise that only a proportion is protected by the bank scheme, even if I spread it around separate banks. Is there a simpler solution to my problem?

ikorodu

If you want simplicity you could put all of it in NS&I income bonds. £400k would pay £416 per month. As its NS&I all the cash would be protected by the UK Government. Alternatively you could max out the £40k premium bonds allowance and put the rest into income bonds. You never know, you might win a million!:j

Other than that for easy access I'd be looking at splitting the cash over 5 different banks, getting about 1.4% or less.

ikorodu

colsten

ikorodu wrote: »

£400k would pay £416 per month.

Worth mentioning that this is paid gross but subject to UK income tax. I.e. you need to tell the HMRC.