Temporary savings

Rodders2409

Hello All,

A quick and probably silly question..

We have just completed on selling MiL property due to Dementia care home fees :-( .....and are awaiting the answer to a possible Immediate Care annuity package, and in the meantime are looking to house the funds (£250K)

I was intending to drop £85K'ish into 3 different immediate access accounts to keep it safe and earning a few quid for the next 4 weeks or so until we decide exactly what will happen for the long term.

Am I correct in assuming that if we set the accounts up, and there a a few at 1.3%AER at the moment, they'd pay out the interest for the few weeks (1 month min) that the monies would be in there for...on the basis that interest is paid monthly on the majority of accounts I've looked at.....or is there a general minimum period even for instant cash accounts?

eskbanker

Regardless of scheduled payment dates/frequencies, savings accounts will pay interest on daily balances however short the time period is.

The FSCS temporary high balances provision means that proceeds of the sale (of a main residence) are protected for up to six months up to a total of £1m, so there's no need to spread the money around in £85K chunks 'for safety', assuming that any accounts opened are in MIL's name, as they obviously should be if it's her money.