Maximising interest on lump sump

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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.

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  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    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
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    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
    diamonds Posts: 6,048 Forumite
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    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.
    SO... now England its the Scots turn to say dont leave the UK, stay in Europe with us in the UK, dont let the tories fool you like they did us with empty lies... You will be leaving the UK aswell as Europe ;)
  • bigadaj
    bigadaj Posts: 11,531 Forumite
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    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
    xylophone Posts: 44,592 Forumite
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    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
    xylophone Posts: 44,592 Forumite
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    The interest is paid gross monthly

    but is taxable so depending on your tax situation would need to be declared to HMRC.
  • eskbanker
    eskbanker Posts: 31,481 Forumite
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    KC2015 wrote: »
    Maximising interest on lump sump
    Invest in oil stocks perhaps? ;)
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