Where do I temporarily put money from sale of house?

ilikecookies

As with most things it comes down to how much effort you want to put in.

For 100% safety and no effort you could bung it all into a suitable NS&I product. Income bonds, for example, will yield you 1.25%.

For continued safety, a fair bit of effort and a much higher rate of return you could look at splitting it across the highest yielding accounts offered across the market. A lot of these, bizarrely, are current accounts. For example, you could open 3 Santander 123 current accounts (1 for you, 1 for your partner and 1 join account) and earn 3% on 60k, 3 Bank of Scotland Vantage current accounts (all in your own name) and earn 3% on £15k, 3 Lloyds club accounts (1 in your name, 1 for your partnet,1 joint) and earn 4% on £15k, etc etc. You need to do your research to ensure each bank has a separate licence to get your £75k of protection. Any money that is leftover could still go into NS&I. This is a lot of effort to setup but worth it once done.

If your timeframe were longer you could look at investing some of the funds into high-yield dividend stocks to earn (4-6%) but you are really looking at a 5-10 year time frame on that and with the market being so jittery this may not be the time to dip your toe here.

agrinnall

glentoran99 wrote: »

isn't tax deducted automatically on interest payments?

Interest is already paid gross on the NS&I Direct Saver that I used, and in my case amounted to over £1000 so would have to be declared even under the new for 2016 rules.

princeofpounds

I believe the traditional thing is to put it all in cash (preferably 50 pounds notes) and scatter it over the bed whilst swigging from a bottle of Cristal.

elverson

... or the Aldi equivalent.

robatwork

Since when did "real estate" become a thing in the UK?

http://www.fscs.org.uk/what-we-cover/questions-and-answers/qas-about-temporary-high-balances/#question0
What is classed as a temporary high balance?

Payments in connection with the following could be categorised as temporary high balances:
Sums paid to the depositor in respect of:

• Real estate transactions (property purchase, sale proceeds, equity release)

Bljak.

lincroft1710

I'll PM you my bank details, your money will be as safe as houses in my bank a/c.