Where to 'rest' proceeds of property sale

anselld

ecraig said:

greatcrested said:

Gold and stocks/shares are too risky for a short-term investment (less than 5 years).

A one (+) year fixed rate savings account won't give you the flexibility if you find a property.

So you need an instant access account or a notice account (eg 30 days notice).

Any bank account will give you up to £1m protection for 6 months for money from a property sale. Longer than that and it's limitedto £85K, except NS&I which offers unlimimited protection.

More on the savings forum here

Disagree. Now is a great time to buy some stocks to keep for no more than 1-2 months.  IF you choose the right ones and monitor closely and don’t get greedy. 
There have been some terrific stocks bouncing like crazy - easy to make a decent % return. 

The OP stated "has to be risk free".

greatcrested

ecraig said:

greatcrested said:

Gold and stocks/shares are too risky for a short-term investment (less than 5 years).

A one (+) year fixed rate savings account won't give you the flexibility if you find a property.

So you need an instant access account or a notice account (eg 30 days notice).

Any bank account will give you up to £1m protection for 6 months for money from a property sale. Longer than that and it's limitedto £85K, except NS&I which offers unlimimited protection.

More on the savings forum here

Disagree. Now is a great time to buy some stocks to keep for no more than 1-2 months.  IF you choose the right ones and monitor closely and don’t get greedy. 
There have been some terrific stocks bouncing like crazy - easy to make a decent % return. 

True "there have been some terrific stocks bouncing". But not "easy to make a decent % return".

Unless you either really know what you are doing, or have great luck in your timing, or are willing to take a loss.

pinkteapot

Depends on the amount. If it’s large, you’ll have to split it between different banks as you’re only protected for up to £85k in each.

We couldn’t be bothered with that so put it all with NS&I as protection is unlimited with them. We put the max allowed in Premium Bonds (£50k per person) and the rest in a joint-names income bond.

Premium Bonds returned just over 1% and there was a chance we could have won a chunk of cash. Not a guaranteed return but if you hold the max you’re likely to get around that. 

Both only need short notice to get the cash out again when you then find a place to buy. 

greatcrested

pinkteapot said:

Depends on the amount. If it’s large, you’ll have to split it between different banks as you’re only protected for up to £85k in each.

Not for the first 6 months. It's £1m. For situations exactly like this.

torrence

Safety first, NS&I savings is probably worth considering. You could put some in Premium Bonds, but if you want access to your cash within 2-3 days then go for NS&I instant access saver account.

Mutton_Geoff

ecraig said:

Disagree. Now is a great time to buy some stocks to keep for no more than 1-2 months.  IF you choose the right ones and monitor closely and don’t get greedy. 
There have been some terrific stocks bouncing like crazy - easy to make a decent % return. 

Would that bounce be a dead cat bounce by any chance?

staffie1

torrence said:

Safety first, NS&I savings is probably worth considering. You could put some in Premium Bonds, but if you want access to your cash within 2-3 days then go for NS&I instant access saver account.

Premium Bonds and Income Bonds are also instant access.

pinkteapot

greatcrested said:

pinkteapot said:

Depends on the amount. If it’s large, you’ll have to split it between different banks as you’re only protected for up to £85k in each.

Not for the first 6 months. It's £1m. For situations exactly like this.

True, but unless you’ve already found a house to buy it’s very easy to go over the 6 months, especially if you’re in an area where little comes to the market. Our money ended up being in the bank for 11 months. Transferring large amounts around is nerve-wracking enough that I was happy not to have to do it any more than absolutely necessary!