Gap between selling and buying

NewbieStaffs18

Help please
I am just about to sell my 1st house but haven't found a new house yet so will be moving into a rental til I do
I have got the sale proceeds coming into my current account but can't leave the money there as (1) I get no interest and (2) I will be above the limit for compensation if the bank fails (I know unlikely - but risky?)
What should I do with the money - hopefully for 3 months
Many thanks

tykesi

I'm in the same boat albeit with less money. I'm buying premium bonds with mine, might be very little return but it's easy to get at and for the short term is fine for me.

davidmcn

Look elsewhere on this site for advice on savings accounts.

nicmyles

As of 2015, the bank compensation limit is more than normal if you have a temporarily high balance - basically for just this eventuality. Up to £1 million. For (I think) six months.

Although when we were in a similar position, we were a bit perturbed by the fact Nationwide seemed to have no knowledge of this. So we stuck it in a First Direct account, since they seemed to be aware of and understand the scheme.

If you google "compensation temporary high balance", you should find what you need.

I mean, unless you're making more than £1 million, in which case a) congratulations and b) you'll need to split it up between different accounts (savings, current, etc.).

G_M

nicmyles wrote: »

.... we were a bit perturbed by the fact Nationwide seemed to have no knowledge of this. So we stuck it in a First Direct account, since they seemed to be aware of and understand the scheme.

.....

Well if Nationwide had gone belly-up, it wouldn't really have made much difference if they understood the scheme or not! You'd be claiming off the FSCS, not N/W.

As explained, the limit is £1m:

https://www.fscs.org.uk/what-we-cover/compensation-limits/

*From 3 July 2015, the FSCS will provide a £1 million protection limit for temporary high balances held with your bank, building society or credit union if it fails. Read our Q&As about temporary high balances for more information.

NewbieStaffs18

That is great - thank you - not anywhere near a million (I wish)!

nicmyles

Well if Nationwide had gone belly-up, it wouldn't really have made much difference if they understood the scheme or not! You'd be claiming off the FSCS, not N/W

Well, indeed, but it doesn't exactly give you the Colgate ring of confidence if you ask your bank how the money they are looking after is protected and they don't have a clue. Sorry, wasn't really a relevant aside anyway, it just bemused me at the time.