where to put money if I come out of property?

turtleneck

I am used to having most of my money tied up in property but I now have a property I don't want to live in which was let out that I am thinking of selling.

I am currently at parents and would like to move out but to somewhere else so considering renting for a while.

This would mean I have about 90k if I sell. Could I safely leave this in my bank account? Would I get any decent interest anywhere or would it mean tying the money up somewhere?

princeofpounds

savings board might be able to help you better.


The FSCS compensation limit is 85k, so you don't have to worry too much about which bank you put it in, although you are a touch over.


But getting a good interest rate is another question!

HouseBuyer77

Not a financial adviser, this is not advice, anyone who invests 90k purely on the word of an internet stranger is an idiot yada yada yada...

The lazy and sensible thing to do would be to open a dealing account on one of the many electronic trading platforms (e.g. https://www.hl.co.uk) and buy an equity index fund and a bond index fund.

A equity index fund is passively invested, this means there's precise rules about what it buys which are mathematically constructed so that the value of the fund matches some index, e.g. the FTSE100 or the whole UK share market or the whole EU market, whole far east etc. Market goes up you make money, market goes down you loose money. Long term stocks show reasonable returns so provided you can leave your money invested for a long time you (hopefully) win.

Bond index funds are much the same but invest in bond markets which are less risky but have correspondingly lower returns. So you put the ratio of bonds to stocks where you want depending upon the risk you're willing to take, a rule of thumb would be take your age as a percentage of bonds, e.g. if you're 30 have 30% in bonds.

Once set up you can just leave this alone, occasionally coming back to rebalance (alter the stock/bond ratio).

If you're planning on not investing long-term (lets say less than 10 years) the above may not be suitable. You also need to stomach market drops, you could see the value of your investments plunge. Some people think they can time these drops (cash out before it really takes hold, buy when it's starting to come back), they frequently loose a lot of money

You could also just attempt to juggle savings accounts and ISAs etc to achieve the best rate, though current returns off that are poor. The Santander 123 account is good, 3% interest on balances up to 20k. I have heard of people acquiring two of them. It's also possible to open one jointly and then one seperately. Though that still leaves you with 50k to do something with...