Deposit £200,000 for one year

srcandas

Hi all. Just wanted to pass this by you good folks here to make sure I haven't missed anything.

• I have a house in UK (£200k) and a flat in Spain (£45k). No mortgages.
• I'm 62 and have various private pensions/SIPs paying £10,000 per year more or less.
• My wife earns £8000 a year from my company. I am virtually retired so not much if anything for me and being a small partnership in reality couldn't sell it. So perhaps some divis.

The plan:

• sell UK house for £200,000 after Xs in May 2015 and deposit it.
• Convert that to Euros as and when.
• Within 18 months buy another home in Spain using £180,000.
• Sell flat to create reserve.

Qs

1. Where does one gain most interest on £200,000 for a year with easy access?
2. When in Euros I'd prefer it still in UK. What are best options?
   • Is there an account where I could shuffle it into Euros as and when?
   • Or would I be better waiting and using a London Exchange who will deal 1% up/down on conversion with no charges?

I'm concerned about being delayed finding our final home and the £200,000 deteriorating while Rome burns.

Any thoughts would be gratefully received :beer:

Linton

Assuming you are British and not Spanish...

Have you thought this through carefully, with the backing of detailed financial plans? Perhaps most importantly, what happens in say 25 years time when you perhaps are beginning to need some level of care and want to come home, could you afford to?

On your question, I would have thought that variation in exchange rates would have far more effect than any interest you are likely to get and any inflation between now and then. With that amount of money and a time frame of a year you arent going to do much better than the standard 0.5% or whatever which wont match inflation.

srcandas

linton tx for commenting

Linton wrote: »

Have you thought this through carefully

Yup thought through but appreciate your concerns. I'm Brit but my wife is Spanish and I have tons of spanish family there and one brother here I never see. So it is a happy oneway ticket. There my life expectancy will be longer and healthcare is not much different to here. I'm fluent Spanish and without that for sure your concerns would be very real.

As you say the exchange rate is the issue but I really cannot control it. So I thought maybe four lumps of £50,000 to give me an average. And in the future I'll have just over £25,000 a year pounds to Euros so whatever I get I will have no wish for the pound to fall.

I had feared you would back up the thought I'm on a hiding to nothing interestwise but I didn't want to miss anything. But I guess even £1000 for the year is something.

I had thought of playing with lots of current accounts but I'm assuming that is not worth the effort?

Voyager2002

You would do far better to keep your money in the form of the house in the UK and earn rent from it. Assuming, of course, that once you find your ideal home in Spain you manage to 'lose' the tenants and sell the house before your dream home gets snapped up by someone else.

Anyway, if you had lots of money in Euro on deposit I can understand why you would not want to keep it in a bank in Spain, but you could keep it in Germany, or Luxemburg... save messing around with foreign currency accounts.

srcandas

Voyager2002 wrote: »

You would do far better to keep your money in the form of the house in the UK and earn rent from it. Assuming, of course, that once you find your ideal home in Spain you manage to 'lose' the tenants and sell the house before your dream home gets snapped up by someone else.

Voyager sadly not a practical option despite the house being furnished and us not wanting that furniture in the future.

The Nationwide at 0.65% seems the best I've found for an offshore Euro account with quick access but only has £50000 protection so we could do 2 accounts to cover £100,000.

And maybe Tesco's for the UK pounds (1.4%).

But the search goes on.

Eco_Miser

srcandas wrote: »

I had thought of playing with lots of current accounts but I'm assuming that is not worth the effort?

Well you could get well over £1000 in a year. Whether you think that's worth the effort?

srcandas

Eco_Miser wrote: »

Well you could get well over £1000 in a year. Whether you think that's worth the effort?

ok you got me thinking, a grand is a grand in any money , but I think I'll hit issues when I'm no longer UK resident. So I might only have 5 months or less in the tax year. Have to look at the T&Cs in detail. :beer: