House sold - mortgage capital to be saved

sknigh39

Hello,

I'm new here so apologies if I miss anything out.

My partner and I have just sold our house, we have £105,000 in capital after expenses that we are getting. We also have £30,000 in savings in a First Direct E-saver account. We save around £2500 between us per month.

I am a higher rate tax payer and my partner is a lower rate.

As i mentioned, we just sold our house and are now living in temporary "free" accommodation until we purchase our next house. This may be anywhere between 3-6 months.

What options do we have to ensure the best return on our money whilst we wait for the next house? We would like to split the money across different institutions to offer us the standard protection. We do not want to lock our money away and need instant access to it in one lump sum for our next house.

I personally think it would be best if my partner opened 2 savings accounts with Virgin money and Kent building society to take advantage of their 1.75 and 1.9% savings accounts. This would mean that she pays the lower rate of tax on the savings...

Appreciate some guidance.

kangoora

For ease, if you're married, open 3 x Santander (2 single, 1 joint) accounts for £60k at 3% interest - knocks spots off BS account interest.

There are a number of other accounts paying anything from 3-5% interest but it's a bit of a faff setting them up but you should be able to squirrel away all £105k paying 3% minimum.

If you can't be bothered with opening a dozen current accounts then £60k in Santander and the rest in a couple of the best paying savings accounts.

See http://www.bankaccountsavings.co.uk/ for ideas on current accounts

Eco_Miser

Simplest is NS&I, no need to split between institutions. Or you could put £60k across 3 accounts at Santander, £15 across 3 accounts at Lloyds (4%), £30 across 6 accounts (3 each) at Bank of Scotland, that's £105k. For more interest, maybe £6k at 5%AER at TSB, and Nationwide also 5%.