How to invest a large amount for a short period

Retahfufo

We are selling our family home for £575,000 at the end of this month, but we won't be completing on our new home for probably two or three months (so we have arranged temporary accommodation for ourselves and our furniture, etc.).  So we need somewhere to keep our sales proceeds until they are needed.  Do I have to set up seven or more new savings account with different organisations (because maximum guarantee is £85,000 on each), or is there a better way?  Not looking for a big interest return, just somewhere safe until needed.

grumiofoundation

Question asked twice today 

https://forums.moneysavingexpert.com/discussion/6287884/what-to-do-with-house-sale-money#latest

https://forums.moneysavingexpert.com/discussion/6287854/saving-options-help-please#latest

Stubod

"Investing" and "short term" do not usually mix?

Alexland

Stubod said:

"Investing" and "short term" do not usually mix?

It's pretty clear the OP is looking at cash products. Lots of people use the word invest when referring to lump sums and it's not wrong just how their thoughts turn into language. For a few months it might be easier and safer to just leave the money in the solicitor's client money account if they are engaged for both the sale and purchase transactions.

Neruda

Check that your solicitor's client account is protected for the full amount. If so, that is the obvious solution.

fourmarks

s://www.fscs.org.uk/how-we-work/claims-process/temporary-high-balances/

If I'm reading this FSCS site correctly then 'temporary' high balances (up to £1m) can be protected for up to 6 months provided they occur due to certain life events. . Property sale proceeds, providing it is your main residence, are one of the listed life events that qualify..

However,  it goes on to state that the FSCS cannot confirm eligibility for protection until after the bank/building society goes bust.

That would not be a good time to find out that you don't qualify for some reason.

sevenhills

Stubod said:

"Investing" and "short term" do not usually mix?

If the OP is thinking of the maximum guarantee of £85,000 and the bank going bust, they are obviously risk averse.

Alexland

Neruda said:

Check that your solicitor's client account is protected for the full amount. If so, that is the obvious solution.

Client money is FSCS protected in the same way as individual money and the law society requires solicitors who process client money to advise them how that protection works. In particular if the client money account is held with the same institution that the individual has other accounts with then then the same upper limit of protection will apply as if the client money was held in a directly named account. The biggest risk to the money would probably be from the additional chance of human error when making the extra transfers between accounts trying to get the best sub 1% pa savings rates. So unless the OP has other large accounts with the same bank that their solicitor uses then it's probably safest to just leave it in the client account where it is ready to be used on the next property transaction.

colsten

Stubod said:

"Investing" and "short term" do not usually mix?

The OP probably doesn't appreciate the difference between investing and saving, as the term investing is widely used by savings providers. NS&I (I for Investment - even though they don't offer investments) and some Building Societies are particular culprits who talk about investing when they mean saving, so Joe Public can be forgiven if they don't know the difference.

NS&I even do a thing called Investment Account, which is an easy access saver paying 0.01% AER, operated by post and phone only. It's a safe place though for up to £1m.

DairyQueen

We completed our sale in mid Jan and our purchase in mid March. Sale proceeds were left in solicitor's client account for that short period. Simple.