Best way to save £140k for a few months

Clueless56

Hello, I'm new to the forum, and feeling rather out of my depth. I have £140,000 to put towards a property. I'm not ready to start looking yet, so would like to earn some interest while I decide how best to proceed. Also, I'm aware that currently only £85k is automatically protected, so want to move quickly..

I'd appreciate advice on where best to put the money for a few months. Would £80k in one account and £60 in another be a better split than £85k and £55k (given that if the bank holding the £85 went down, I'd lose any interest I'd earned?)

badger09

Clueless56 wrote: »

Hello, I'm new to the forum, and feeling rather out of my depth. I have £140,000 to put towards a property. I'm not ready to start looking yet, so would like to earn some interest while I decide how best to proceed. Also, I'm aware that currently only £85k is automatically protected, so want to move quickly..

I'd appreciate advice on where best to put the money for a few months. Would £80k in one account and £60 in another be a better split than £85k and £55k (given that if the bank holding the £85 went down, I'd lose any interest I'd earned?)

If you are looking at just a few months, then the interest earned is not going to be significant, wherever you put your £140k.

If the 2 accounts you're looking at have similar interest rates, you could simply split £70k and £70k, otherwise £80k and £60k would still be safe.

For ease, you could use NS&I Income Bonds (1%) or Direct Saver (0.95%) for the whole £140k and it would all be safe.

https://www.nsandi.com/our-products

Clueless56

Thank you, Badger09, so not worth opening a couple of instant access savings accounts then if only for a few months?

Silvertabby

How about the maximum holding in premium bonds? You never know your luck....

YorkshireBoy

Clueless56 wrote: »

...so not worth opening a couple of instant access savings accounts then if only for a few months?

NS&I would return ~£116 per month, with the whole lot protected.

Opening, say, Tesco & Virgin Money savings accounts with £70K in each would see a ~£149 per month return.

"Worth" is down to you isn't it?

Clueless56

Thank you, I thought that the return would be better from savings accounts than NS&I and was just querying why Badger09 didn't think it would make a significant difference. £40-odd quid per month seems significant to me. (I never trust my own maths, so appreciate that you set it out like that.)

YorkshireBoy

Clueless56 wrote: »

Thank you, I thought that the return would be better from savings accounts than NS&I and was just querying why Badger09 didn't think it would make a significant difference. £40-odd quid per month seems significant to me. (I never trust my own maths, so appreciate that you set it out like that.)

It's ~£33 per month, so you're right not to trust your own maths!

badger09

YorkshireBoy wrote: »

NS&I would return ~£116 per month, with the whole lot protected.

Opening, say, Tesco & Virgin Money savings accounts with £70K in each would see a ~£149 per month return.

"Worth" is down to you isn't it?

YB do you mind saying which accounts you've used to arrive at £149?

Max I can see would be £143.50 in Tesco & Virgin Double Take E-Saver

YorkshireBoy

badger09 wrote: »

YB do you mind saying which accounts you've used to arrive at £149?

Max I can see would be £143.50 in Tesco & Virgin Double Take E-Saver

Apologies. Guilty of not going to the provider's website...MSE main site has the Double Take at 1.36%, not 1.26%.

badger09

YorkshireBoy wrote: »

Apologies. Guilty of not going to the provider's website...MSE main site has the Double Take at 1.36%, not 1.26%.

How many times have you, and I;) told posters to check the T&Cs, and not take the word of MSE or the well meaning, knowledgeable and helpful posters on here.

Now, you must sit on the naughty step for 10 minutes :rotfl:

YorkshireBoy

badger09 wrote: »

How many times have you, and I;) told posters to check the T&Cs, and not take the word of MSE or the well meaning, knowledgeable and helpful posters on here.

Now, you must sit on the naughty step for 10 minutes :rotfl:

I'd like to say it was for illustrative purposes, but I'm guilty as charged and have just 3 more minutes left on the naughty step!

Must have been a very recent drop? EDIT: It was...2 days ago.