Temporary place for large amount of savings

frustratedfred

I’m no stranger to having loads of current accounts and setting up direct debits/standing orders to get the most interest on savings but I don’t want the hassle of that for this.

My partner currently has ~145000 from the sale of a property across two current accounts earning no interest. This is not her money and will only be in her accounts for up to 6 months at most. 

I was wondering if anyone could advise me what the best thing we could do with it while she has it to earn some interest, risk free of course? Seems silly to have that sort of money and not earn anything while in her possession!

bigadaj

NS&I offer best rates currently and you don't have to worry about the fscs limit.

colsten

There is the FSCS temporary high balance scheme, usually 6 months, presently extended to 12 months.

However, since no bank matches the top easy access rate offered by the NS&I Income Bonds, I would go for those, and possible also put £50k into NS&I Premium Bonds. NS&I accounts are backed by the Treasury, thus no need to worry about FSCS limits.

Interest will be modest, at £4.50/day at the most. In true MSE style, obviously this is nothing to be sniffed at.

mab3000

Was about to post pretty much the same message as Colsten. I did not know they had increased the length of time on a FSCS temporary high balance, before reading their post I was checking the FSCS website to check the facts before I posted. 

EssexExile

The OP says the money is in the partners account but it is not her money. Would she be covered by the FSCS temporary high balance scheme in that case?

colsten

EssexExile said:

The OP says the money is in the partners account but it is not her money. Would she be covered by the FSCS temporary high balance scheme in that case?

Money in her account is her's, even if she intends to pay it to someone else at some stage. Whether it's covered under the temp high balance scheme is a different and valid question - I had assumed that the sale relates to her (previous) main residence, or is an inheritance, or that it's the proceeds of a deceased's estate for which she is a personal representative. I could of course have made the wrong assumptions. But as I said before, given the interest rates, FSCS is a bit academic as it wouldn't be the greatest idea to keep the money with any bank.

xylophone

This is not her money and will only be in her accounts for up to 6 months at most. 

To whom does the money belong?