Claim Settlement Help

SharkBite

Hello everyone,

I'm about to receive a generously large sum of money due to a personal injury claim for an accident I had last year.

Its almost certainly enough for my wife and I to buy our first home.

The trouble is I have never had access to such large sums of money before and I'm at a complete loss as to what to do with it until we use it. (nicer problems to have)

Naturally I've looked at savings accounts and the various types however, we probably aim to have bought the house (hopefully) say in 6 months time. What should I do with the money until then? Sit in my current account?

You may be able to tell iv'e never been in such a fortunate financial position and probably won't ever again. I want to get it right first time.

Thank you all in advance.

Max

MallyGirl

Take a look at this link - especially point 2

https://www.moneysavingexpert.com/savings/safe-savings

Linton

How much money? The amount will affect your options.

If it's a very large amount of money a reasonable option is NS&I Direct Saver paying 0.95% interest. This is fully guaranteed by the government and provides better interest than the high street banks.

SharkBite

MallyGirl wrote: »

Take a look at this link - especially point 2

This is helpful thank you. I was worried about the £85,000 cap.

Linton wrote: »

How much money? The amount will affect your options.

If it's a very large amount of money a reasonable option is NS&I Direct Saver paying 0.95% interest. This is fully guaranteed by the government and provides better interest than the high street banks.

Six figures. Is it worth placing it in savings for such a short amount of time? Is interest paid monthly?

Aegis

It's definitely worth putting into savings while you make the decision, however as long as you decide to do something within six months of the payment being made to you the £85k limit is waived - your entire deposit is covered. This is under the Temporary High Balance regime:

https://www.fscs.org.uk/what-we-cover/questions-and-answers/qas-about-temporary-high-balances/

Set a reminder for five months' time and make sure to move the funds to NS&I at that point if you haven't already bought your house.

Linton

Max_Hughes wrote: »

........

Six figures. Is it worth placing it in savings for such a short amount of time? Is interest paid monthly?

£100K at 0.95% for 6 months = about £500. You would get the interest pro-rata'ed. Have a look at the link. It's not a lot of money but better than virtually nothing which is what you would get elsewhere with that amount of money without taking any risk.

SharkBite

This is all great advice thank you.

Eco_Miser

Linton wrote: »

If it's a very large amount of money a reasonable option is NS&I Direct Saver paying 0.95% interest. This is fully guaranteed by the government and provides better interest than the high street banks.

Birmingham Midshires (part of Lloyds) is paying 1.45%.