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Where to place house sale cash

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Where to place house sale cash

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UWBD63UWBD63 Forumite
1 posts
MoneySaving Newbie
I've just completed on a house sale. I have to live off this cash at present as I'm in the group of women who don't qualify for a pension yet due to Government moving the age limit.
I have no other income but am married so don't have sole responsibility for bills. 
Advice needed please where to put a sizeable sum that is safe until I decide what to do with it. It's currently in my current account where it obviously can't stay.

Replies

  • FarwayFarway Forumite
    8.6K posts
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
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    cash ISA first call, use your full annual allowance £20,000, and remember you can top up in new tax year [April], so pick one that allows top ups or choose another ISA supplier for April, so that's £40,000 sorted without need to think about any tax.
    Next is wherever you can find a decent [ho ho] interest rate, the ho ho is because in current world situation interest rates a re low & likely to fall even further
    You will have to decide between easy access, notice required or long term say 2 year fixed.
    I'd stick to cash given world situation& not be lured by share style potential dividend promises

  • JGB1955JGB1955 Forumite
    727 posts
    500 Posts Name Dropper First Anniversary
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    There's no point in putting the cash in an ISA unless the interest rate is higher than an ordinary savings account or bond. If you have no earned income you can receive almost £17000 in interest before you would be taxed.
    #36 Saving for Christmas 2020 - £1 a day challenge.... £335/366
  • Savvy_SueSavvy_Sue Forumite
    41.9K posts
    Part of the Furniture 10,000 Posts Name Dropper
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    One of Martin's recent programmes dealt with savings, but it doesn't look as if it is still available on the ITV hub, so ... I'd start with the articles here

    I'd also work out how long I'm expecting or needing this money to last - 1 year, 2, 3, 4, 5? - and divide the amount by that number of years. So to keep the maths easy, say it's £150K and your state pension etc doesn't kick in for 5 years, you've got £30K to set aside for 4 years, £30K for 3, and so on. Of course this makes no allowance for inflation and madness, so I'd try to make the early years stretch as far as possible. 

    And you also need to be aware of the savings guarantee: take a look at this and make sure that you don't put more than £85K under the same 'umbrella', eg NatWest and something Scottish have £85K guaranteed between them. 
    Still knitting!
    Completed: TWO adult cardigans, 3 baby jumpers, 3 shawls, 1 sweat band, 3 pairs baby bootees, 2 sets of handwarmers, 1 Wise Man Knitivity figure + 1 sheep, 2 pairs socks, 3 balaclavas, multiple hats and poppies, 3 peony flowers, 4 butterflies ...
    Current projects: pink balaclava (for myself), seaman's hat, about to start another cardigan!
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