Selling House and Income Bonds

BG88

Hi all,

I am in the process of selling my house and will soon have £200k in the bank. I am going to be using this money to buy a new house in the winter (moving in with gf meantime) and was thinking of sticking the money in NS&I Income Bonds for the short period that I won't be needing it. My thinking behind this is that the money is secure, I get an additional bit of income, easy to access and the time frame is too short for me to do anything else with. Is this a reasonable idea or am I missing something obvious?

Any advice welcomed!

ColdIron

As long as you are happy with the lowish returns, it seems a quite reasonable thing to do for the reasons you state. You could get more but you would have to do more work by opening several other current accounts and there is something to be said for peace of mind and security. Don't forget NS&I pay interest gross so you may need to make a declaration to HMRC

BG88

Thanks for you response. Yes, the peace of mind was my thinking also. I have considered the various current accounts from reading on here, but to be honest I don't think it would be worth it given the time constraints. This may be a stupid question, but do I simply phone HMRC to inform them I have opened an Income Bonds account or does it require a good bit more paperwork? Also, has anyone had any experience with NS&I in terms of service and ease of use?

Thanks