Maximising interest on lump sump

KC2015

Hi All,
I will in the coming few weeks complete on the sale of my property. As I have not found a new place to purchase I will need to move into rented accommodation. I am looking for advise from experts here on where I can safely place the lump sum from the sale to maximise the return which can then help towards the rental costs. I cannot afford to take any risks or tie-up the funds for an longer than say 30 or possibly 40 days.Thanks.

bigadaj

Depends on the sums involved.

The most secure and easiest option is ns&i, and with larger sums then banks struggle to beat this in any case.

The other option is multiple, current accounts but this takes some time, might result in multiple credit searches which could be an issue for a new mortgage application.

KC2015

Thanks for the response. It's a nice tidy sum. £600K, so may need to spread it out to get the protection. I looked up NS&I but could not find a high interest account. Are you able to be more specific?

diamonds

Get every account you can with good rates, when exhausted 1.25% in premium bonds for the rest - upto 1 million.

NSI has no lower protection amount, its HM Treasury so every penny in will be paid back if NSI goes bust.

bigadaj

KC2015 wrote: »

Thanks for the response. It's a nice tidy sum. £600K, so may need to spread it out to get the protection. I looked up NS&I but could not find a high interest account. Are you able to be more specific?

Direct saver or income bonds paying 1.1% or 1.25% respectively.

The banks don't really want your money so they don't offer much more.

xylophone

As you seem likely to need the cash at short notice, depositing the £600000 in NS&I income bonds seems a good idea.

The interest is paid gross monthly - about £625 a month towards your rent.

xylophone

The interest is paid gross monthly

but is taxable so depending on your tax situation would need to be declared to HMRC.

eskbanker

KC2015 wrote: »

Maximising interest on lump sump

Invest in oil stocks perhaps?