Where to keep my £250k for 3-6 months?

Getrichquick

Hi there, I am receiving £250k from a property I jointly own, and I intend to buy a new property afterwards. Due to various circumstances I will need to keep the money I receive in a bank account for 3-6 months, before I put it towards my new house. Can you let me know where you think would be the best place for this money? All the high interest accounts I see seem to pay the interest after one year.

Is it likely that I would receive any interest on it at all in a short time frame? Or do all accounts only pay out after one year.
I tried to speak with my current bank about it - but they just told me to look on the internet!

Another_Saver

A normal savings account is fine https://www.fscs.org.uk/news/protection/new-temporary-high-balances/?gclid=Cj0KCQiA5bz-BRD-ARIsABjT4niRiVMc5EG40EoYgvYoxPZ67ln2YuywjihwDAbe10uvfyVJ3c8SofEaAsx5EALw_wcB
I would max out £50k premium bonds and stick the rest in the best savings account you can get (https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/).
Or you could just leave it in any old bank account if you aren't bothered about the interest.

nbrewitt

That speaks volumes about how little the banks are interested in cash deposits these days when you come along with a nice lump sum only to be told to go away and look on the internet.

My suggestion is put 50K in Premium bonds and spread the rest in the thin pickings from the instant access accounts paying about 0.5% (at the moment!!)

Albermarle

https://moneyfacts.co.uk/savings-accounts/
Easy access accounts will pay interest every day that you have the money with them . The interest figure will not be visible and will normally be added once or year or earlier if you withdraw the money.

enthusiasticsaver

You will get interest from it but rates for cash deposits are pitiful and normally you should restrict the deposits to  £85k per financial institution unless it is N, S and I so it is covered under the FSCS guarantee.  

Albermarle

enthusiasticsaver said:

You will get interest from it but rates for cash deposits are pitiful and normally you should restrict the deposits to  £85k per financial institution unless it is N, S and I so it is covered under the FSCS guarantee.  

As Another Saver pointed out there is a much higher  'temporary high balance ' FSCS cover for this type of situation.