700k – the best place for it

AtoZ_2

I'm soon to receive 700k through a house sale and am wondering as to the safest pace for it which will allow me access with the best interest rate. I've no plans to use the cash immediately which means that I'm not averse to putting it somewhere with more limited / restricted access, however I'm not looking to have it tied up somewhere for more than a year without access.

I'm loathe to spread it out across multiple accounts – which is something I read about in another thread on here – but if that's the best way then so be it. I suppose, I'm hoping, perhaps naively, that there's a singular place for my money which will allow it to accrue decent levels of interest as well as regular access? A safe and seamless for the uninitiated basically.

Thoughts and opinions very much welcomed.

droopsnoot

To be on the safe side, you do need to spread it around, as much of a pain as that is. It's reasonably unlikely that a UK bank will default and lose your money, but peace of mind is a wonderful thing, so no more than £85k in a single financial institution, or twice that if you can open a joint account. There used to be a handy list on here somewhere showing which banks / Building Societies are part of the same FI.


I'm hopeless at maximising return on my savings, so I'll leave the rest for someone else.

evenasus

You'd get more response from the Savings & Investments Forum of MSE.

http://forums.moneysavingexpert.com/forumdisplay.php?f=17

Glen_Clark

Nothing is 100% safe. But the lowest risk is thought to be German Bonds - so they are currently paying only 0.16%
Slightly more risky is this paying 1.1 % - All guaranteed by HM Government so as safe as the Bank of England - http://www.nsandi.com/direct-saver

kidmugsy

For security and simplicity you might want to bung most of it into an account with ns&i. For returns, spread the rest among the well-known accounts at Santander, Nationwide, TSB, Lloyds group ..... You could even open an ISA.

AtoZ_2

Thanks all. Looks like spreading it all out might be the best way after all then. I'll take it on onto the relevant forum as suggested by evenasus anyhow. Thanks all.

eskbanker

For that size of pot I'd suggest http://www.nsandi.com/income-bonds for a safe 1.25% on the whole amount in one place.

Yes, you can (also) open a bunch of current accounts to get more interest but as that would only take care of less than 10% of your pot, it won't make much different to the overall return, although still worth doing if you can overcome your initial resistance!

Glen_Clark

Glen_Clark wrote: »

Nothing is 100% safe. But the lowest risk is thought to be German Bonds - so they are currently paying only 0.16%

On second thoughts the safest is thought to be Swiss Bonds - but the interest rate is negative - you have to pay them to hold your money