86k - what account/s best??

emylou

Hi all,

Long story short I have just sold my flat & have 86k now sitting in my bank account. We are renting for a year due to needing some life issues to settle before we look to buy our 'forever home'. The financial advisor I normally see has been very unwell & has been in & out of hospital recently so I don't want to bother him. I want to be safe and am not looking at investments or anything risky but a bit of interest wouldn't go amiss any recommendations on which banks are best/worst- pros & cons etc?

Thanks in advance!!

Reed_Richards

If you want instant access to your savings then the Marcus account https://www.marcus.co.uk/uk/en is one of the best, offering 1.5% interest for the first year and very rapid access to your savings via transfer to and from your current account. If you were prepared to lock your money away for a year then you could get a better interest rate.

£86k is £1k above the limit for FSCS protection so you might want to split this money between two accounts.

JGB1955

The proceeds of a property sale up to £1M are protected by FSCS for six months, so you can safely put the whole £86K into one pot whilst you work out your next strategy.

SpanishBlue

JGB1955 wrote: »

The proceeds of a property sale up to £1M are protected by FSCS for six months, so you can safely put the whole £86K into one pot whilst you work out your next strategy.

Just be aware, this is not quite as clear as it may appear. It was discussed in more detail here. https://forums.moneysavingexpert.com/discussion/5910251/temporary-high-balance-cover-across-different-banks

eskbanker

SpanishBlue wrote: »

Just be aware, this is not quite as clear as it may appear. It was discussed in more detail here. https://forums.moneysavingexpert.com/discussion/5910251/temporary-high-balance-cover-across-different-banks

I'd say that the actual documented rule itself is clear, despite one or more FSCS employees previously muddying the water by giving contradictory steers, possibly in relation to slightly different questions.

As they quoted back to you, clause 10.12 of the PRA rulebook on depositor protection states:

Where all or part of a temporary high balance is transferred to another DGS member after the start of the coverage period referred to in 10.7, the FSCS must pay compensation if it considers that the transferred deposit is sufficiently linked to the temporary high balance. The coverage period in 10.7 shall be calculated by reference to the point at which the temporary high balance was credited to the first account.

In other words, if OP shifts the £86K sale proceeds to another FSCS-protected account, they'll be fine, as this would obviously be 'sufficiently linked', but a different high balance might not be protected....

This is probably all moot anyway in the context of £86K!