Short term monthly interest savings

ianthomasbilly

Morning forum. Looking for some advice please. I have a period of up to 8 months where I need to hold a £350,000 equity from a house sale before I need to complete on my onward purchase. What’s the best and safest method of investment for that sum? I’d like to use any interest accrued to pay for costs so ideally not an annual or anniversary savings account. Many thanks in advance 

Albermarle

ianthomasbilly said:

Morning forum. Looking for some advice please. I have a period of up to 8 months where I need to hold a £350,000 equity from a house sale before I need to complete on my onward purchase. What’s the best and safest method of investment for that sum? I’d like to use any interest accrued to pay for costs so ideally not an annual or anniversary savings account. Many thanks in advance 

Firstly an 'investment' is not recommended for the short term- only savings accounts ( you probably meant this but best to be clear on these points) 
You need an easy access account . Due to it being a house sale related amount, you are covered for more than £85K under the FSCS compensations scheme ( but only for 6 months I think) You are fully covered for any NS&I accounts but the interest rates are poor.
Compare The Best UK Savings Accounts | moneyfacts.co.uk

Dazed_and_C0nfused

Atom Bank (app only I think) have a 6 month fixed rate account which currently pays 2% and it looks like the interest can be paid monthly into an external account.

kaMelo

I'd agree, if you definitely won't need it for six months then the Atom six month fix looks the best place.

Whilst currently they pay less you could possibly achieve more by splitting it up, putting some in regular savers with easy access, Zopa boosted pots etc. in the hope they increase their rates in the next few months.  It comes down to whether you can be bothered or not.

Personally, for that sum of money Atom would be my choice.

Bigwheels1111

Using Al Ryan and Shawbrook to keep my savings pots In until I get the rates I want.
Easy access no hassle.

Daliah

If you need anything over 6 months: NS&I Direct Saver, good for up to £2m. Sadly with a miserable interest rate, 1.2% atm - but you could split your money over higher paying accounts. Depends on how much time you want to / can afford to invest in splitting it, and then collecting it form various places.

Daliah

Bigwheels1111 said:

Using Al Ryan and Shawbrook to keep my savings pots In until I get the rates I want.
Easy access no hassle.

2 banks are not enough to put £350K away safely. Not even if you use joint accounts.

Bigwheels1111

Daliah said:

Bigwheels1111 said:

Using Al Ryan and Shawbrook to keep my savings pots In until I get the rates I want.
Easy access no hassle.

2 banks are not enough to put £350K away safely. Not even if you use joint accounts.

I know, 5 accounts will be needed.
I just listed the 2 I have, my other 2 are Atom 1.5% 1 year fixed due September and QIB.
The last 2 are not competitive now.
Will add Zopa and one other as necessary, when my pots mature.
Now just need 4-5% fixed rate deals, you never know.
The way rates are rising.

Daliah

As already mentioned in the first response to the OP: https://moneyfacts.co.uk/savings-accounts/

EthicsGradient

At the moment, 3 month (or so) notice accounts are paying better than 6 month fixed term accounts. Normally, they can't decrease the interest rate without giving you the notice of the account,. So you'd be better off using those, and, if nothing else, giving notice to end them after six months. But if you can actually give the notice before needing the money, that'll be even better ("up to 8 months" is a little vague). If you do need to be more flexible than a fixed 6 month account, Zopa has a 31 day notice account at 1.95%.

kaMelo

Actually scratch Atom, max deposit is £100,000 for the six months fix.

Only BLME  United Trust Bank have six month fixes for the whole sum @ 2.01% and 1.96% respectively,  both of which would generate about £3500 which is not too shabby.

If not those then you're either going to have to slice and dice it around multiple providers or accept a lower return for a simpler approach.