Lump Sum, Easy Access

Ian2deep

Hi. Newby Oldy here. Just sold our house for approx. £450k and now have to wait more than 1 month before purchasing our new home. Wondered if any of you had suggestions for safely investing the proceeds on a "quick access" basis while we wait. 

colsten

https://moneyfacts.co.uk/savings-accounts/

Don't expect to get rich from 1 month's interest.

DrSyn

 Not clear what you mean.

1. Saving is: Not putting your money at risk, by putting it in NS&I, Bank, Building Society listed on the FCA Financial Service Register. Then look here:   
 https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

2,Investing is: Putting your money at risk in the hope it will increase in value and not go down.
If this is what you mean then, no. It should be invested for a minimum of 10 years.

Alexland

DrSyn said:

 Not clear what you mean.

I often wonder if we get too focused on this specific view of these definitions for example my old CII R01 textbook for the diploma in regulated financial planning says "typically the phrase 'savings' refers to the regular investment of small amounts of money and 'investment' relates to lump sums". It even covers that savings will eventually become a lump sum so the same money could be called both savings and an investment. So an investment doesn't need to be invested in volatile assets but still people use the phrases differently and that's probably OK if they are otherwise clear enough.

Anyway the OP has a lump sum and "safely" doesn't intend to take any risks with it so it's just a question about which cash account they might use for which a best buy table link is provided above. The sale proceeds are likely to be held in a solicitor's client money account which might be the safest and most practical place to leave it until it is required for the imminent purchase (assuming they are using the same solicitor for both transactions) as there will be no risk of it then being transferred to the wrong account, no transfer out/back charges, no risk of it not being available when needed for the purchase completion, etc.

colsten

Lots and lots of Building Societies talk about investing - in their savings accounts.

Alexland

colsten said:

Lots and lots of Building Societies talk about investing - in their savings accounts.

Yes and platforms and direct fund managers often have regular savings plans.

DrSyn

I still prefer to use these definitions that I was taught, which makes the risk to the money clear. If you do not like it, then simply do not use it.

DairyQueen

We are in a similar position. Completed on sale mid January and will complete on purchase on Monday. We did exactly as Alex suggested. Cash has been left in solicitor's client a/c. Not worth the faff to transfer the funds to/fro and incur CHAPs fees for the sake of 2 months interest at current pathetic rates.

eskbanker

DrSyn said:

I still prefer to use these definitions that I was taught, which makes the risk to the money clear. If you do not like it, then simply do not use it.

I don't think anyone on here is saying that they'd use different definitions themselves, but the point being made was that there isn't universal standardisation, so others may use the terms in different ways, whether that's newbie posters or institutions being careless with the terminology.

jimjames

DrSyn said:

I still prefer to use these definitions that I was taught, which makes the risk to the money clear. If you do not like it, then simply do not use it.

I think the OP was pretty clear on their requirements though regardless of terminology. Risk free and quick access for money needed in a month wouldn't point to anything other than savings type accounts.

Alexland

DairyQueen said:

will complete on purchase on Monday

Hope it goes well for you DQ. Seem to remember you have been planning this for a long time!