Where can I put proceeds from house sale?

nyorks1503

Hi

I have been reading all the info re savings and getting the best interest deals - but not sure on my issue as its a lump sum.

I am selling my house and moving in with the fella as I have the most equity in my property than he. We will then use this as deposit on our joint property. He will then sell his house and chip in what he returns from the sale of his house. Anyway in the short term 6-12 months where can get the best from this money? It will be in excess of 190,000.

Thanks folks

Aegis

if it's only 6-12 months you might want to consider splitting the total and putting it into 6 or more high interest savings accounts. This means you benefit from the FSA protection on amounts of £32000 (or so) and under, so if a bank goes bust while you have your money in it, the maximum you lose is a little under 10% of that portion. It's not likely, but it's worth considering when you have that much money that would be totally unrecoverable.

Anything more risky than that and you might find that your money is worth less than it is now by the time you come to need it, which is obviously a bad thing.

Of course, if you find that you don't need all of the money, you can then consider investing the remainder.

Jonbvn

Aegis wrote: »

if it's only 6-12 months you might want to consider splitting the total and putting it into 6 or more high interest savings accounts. This means you benefit from the FSA protection on amounts of £32000 (or so) and under, so if a bank goes bust while you have your money in it, the maximum you lose is a little under 10% of that portion. It's not likely, but it's worth considering when you have that much money that would be totally unrecoverable.

IMHO the scenario of banks going bust is slightly paranoid. As happened recently in Germany, other banks will normally step in to support any failing bank.

Anyway, I would suggest you look at the best savings accounts.

Aegis

True enough, the risk is fairly low, but it can happen, and with no real advantage to keeping it all in one place other than slightly simpler paperwork, I'd take what is essentially free insurance against that event happening. You might lose out on a total of a percent of interest overall by doing this, but for 6-12 months that probably won't make or break their lives.

Anyway, it's just what I'd do, I'm certainly not claiming it's the single best approach or anything.