Where to put circa 100k with quick access

questionss

Come 5th April we should have close to 100k. This was intended to go straight into a house purchase but everything is stagnating on that front. We can't leave it in the company account beyond then so we need to put it somewhere, ideally earning some interest until we need it. Obviously with a house purchase on the cards we need quick access (ideally instant but def no more than a few days.)

YorkshireBoy

Nothing take your fancy in the 'top savings accounts' article on the main site? (within 'banking and saving', but also a direct link to it at the top of the screen)...just above where you clicked to start your thread.

Or maybe take a look at all the other "where do I put £50/60/70/80/90/100K" posts for some ideas?

Unless you put it with NS&I, you ought to make the account joint or at least split the cash to keep each of you under £75K (for FSCS protection).

questionss

I guess I was asking more if people would try & split it to take advantage of some of the higher rate current accounts or just put it all in one mediocre paying savings account. Is it worth the hassle of opening lots of accounts etc

YorkshireBoy

questionss wrote: »

I guess I was asking more if people would try & split it to take advantage of some of the higher rate current accounts or just put it all in one mediocre paying savings account.

That would depend on timescale. If 9-12 months or more, some may consider it I suppose. Probably not all of the accounts, but possibly 3 Santander 123 accounts for £60K of the cash.

Then again, if you're otherwise borderline accept for a mortgage, and/or any mortgage application is imminent, then probably best to hold off on the current account applications?

Is it worth the hassle of opening lots of accounts etc

That's your decision isn't it? 1.5% vs 3% means a loss of £1,500 over a year. How much "hassle" are you prepared to incur for £125 a month?

ratechaser

Well if you are of the view that it will only be available in the very short term, then the difference between the 1.35% (or so) you'd get from a single instant access saver; versus making upwards of 3% spreading it around various current accounts and regular savers; is probably just not worth it.

But if you said (hypothetically) that the money might be there for a year, then my back of a fag packet sums suggest you'd be passing up on an extra couple of thousand in gross interest. Plus whatever incentives might be around in April for opening current accounts (right now there is not far off a thousand to grab across different banks although offers are very time limited...)

Yes, there is quite a few hours work involved plus a bit of regular maintenance. But assuming you have joint as well as sole account options, you could still take a lower effort middle ground approach, e.g 60k into Santander, 15k into Club Lloyds, 4k into TSB, 5k into Nationwide... And get a decent return...

PeacefulWaters

Remember you have FSCS protection on the full amount for upto six months.

http://www.fscs.org.uk/news/2015/july/new-protection-from-today-for-temporary-high-balances/

badger09

PeacefulWaters wrote: »

Remember you have FSCS protection on the full amount for upto six months.

http://www.fscs.org.uk/news/2015/july/new-protection-from-today-for-temporary-high-balances/

Not necessarily in this case.

OP hasn't said where the 'close to 100k' by 5th April has come from:cool:

westy22

As he needs it out of the company by 5 April then I presume it is dividends that they are taking before the new regime comes into force. That would not be a "Lifetime event" defined by the temporary high balance allowance.

xylophone

If he is likely to apply for a mortgage in the next few months then perhaps opening a lot of new current accounts might not be a good idea.

NS&I Income Bonds might suit in the short term.