What to do with House Sale Money

sturner1234

I am looking to sell the house that I have inherited when my mum died and will get approx. £245,000 after everything has been completed and I sort myself out. I have been living in it for the past year by myself (only child).

I am 22 and am finishing my masters but want to move into a rented apartment after finishing so i can have some time off (6-12 months) and go on a few holidays and just generally relax before getting a job and then buying a house wherever that may take me.

I am very new to savings and investments and it can all get very confusing.

Am looking for help and what people think would be the best place for me to save this money so that I can gain some good interest on it.

Thanks

eskbanker

If you're essentially looking for (what's left of) this money to fund another property purchase some time next year then that's much too short a timescale for investing, so you'd be best to keep it in savings.

The best buys in each category are shown at https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/ - you should split the money so that you don't have more than £85K with any one institution (the limit of the FSCS protection). You might wish to open a couple of one-year fixed rate accounts for the majority, maybe some into a notice account (https://savingschampion.co.uk/best-buys/personal/notice-accounts/) and keep the rest easily accessible in, for example, a Marcus account.

The simplest option would be to keep it all in NS&I (where all savings are fully protected beyond the FSCS limit) but the interest rates aren't particularly competitive....