Advice please re proceeds of house sale

magicmoneyman

Good morning moneysavingsexperts.

I'm looking for some advice please / guidance in relation to the following. I have just sold my house and will be buying a new build, but the new house will not be complete until Winter Time.

So during this time I will be renting property but the proceeds from the house sale after fees etc will be approx £240k

My question is, I can't lock the money away for anymore than 6 months as the bulk of this will be used as the deposit for the new property. Where is the best place to put this cash to work as hard as possible for 6 months.

I currently have a stocks and shares ISA that I subscribe to each month, and some money invested in a P2P platform. I'm happy to use up my ISA allowance for this year in the Stocks and Shares ISA but after that other than my savings account I have with my bank ( 0.5% ) interest rate I'm not sure where is best for 6 months.

Many thanks in anticipation.

Linton

For a sum as large as yours you are probably not going to get anything better than say the National Savings rate of 0.8%. The money will be guaranteed directly by the government. You could put £15240 into your S&S ISA, but obviously it wont make much difference overall and could well fall in value over a period as short as 6 months.

xylophone

Income bonds would offer 1.26% reducing to 1% - http://www.nsandi.com/our-products
You could put it all there.

Or you might consider dividing between 3 accounts- http://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

after having subscribed full amount to Coventry Cash ISA (1.3%) 2016-17- this ISA is fully flexible so you could top up within tax year.

http://www.coventrybuildingsociety.co.uk/savings-accounts/cash-isa/variable-cash-isa.aspx

Or you could open as many as possible of interest paying current accounts - you could potentially squeeze in around £50,000......

magicmoneyman

Thank you very much for the posts and the links, very much appreciated will probably opt for either Tesco or Sainsbury's bank instant access account.

vegit8

If you have a partner you could open 3 Santander 123 accounts - 2 single / 1 joint, you will need to fiddle with setting up 6 standing orders (2 per account) - and a regime to move money in and out each month from another account.
That will take care of £60k and earn 3% gross. the fee is now £5 per month per account

Onawingandaprayer

I'm sure you've thought about it, but just in case, don't forget the 'elephant in the room' namely https://protected.fscs.org.uk/money-protection-checker/

Ballard

Onawingandaprayer wrote: »

I'm sure you've thought about it, but just in case, don't forget the 'elephant in the room' namely https://protected.fscs.org.uk/money-protection-checker/

Aren't proceeds from house sales protected to a higher level for a period?

Onawingandaprayer

You're right - UP TO 6 months. I'd be a bit nervous nearing that deadline though.