Home sale lump sum

jicms

We're about to complete on our home sale and need to park the considerable proceeds in the best available rate savings account pending finding our next home. We need either easy access or a short notice period. Most of the accounts don't allow large lump sum deposits. Why is this. I'd have thought they'd be pleased to have the simplicity of a large lump sum. We don't want regular savings or additional deposits but could cope with a very short notice period. The best I've found is Nationwide at 1.75% stating max £1m deposit. Is this the best available? I've seen Al Rayan but not sure I'm comfortable with the "expected" rate of 2.1%. 

Daliah

You don’t say how much you want to deposit but most savings accounts have very generous max limits. Al Rayan rate is as good as any non-Sharia instant access rate. One disadvantage with thrm is the max £20k daily withdrawal amount, which could be a serious issue once you need your money. You should check daily withdrawal limits of other providers.

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

You have a temporary high balance FSCS protection for £85k per person per financial institution. If you need to deposit your money for more than 6 months, rather than splitting your money, you can consider NS&I, though they have dreadful interest rates.  

Bigwheels1111

I've seen Al Rayan but not sure I'm comfortable with the "expected" rate of 2.1%. 

Why ?.

Easy access has a variable rate, be it a standard bank or sharia expected profit rate.

Most banks just drop the rate when they want and so can sharia banks.

Sharia banks will let you know its going to be dropped etc and say you get the expected profit until the day it drops

And give you the option to move your money.

Ive got accounts with Al Ryan 2.1% & Gatehoue bank 2.0%

Al Ryan have raised the rate twice in the last few weeks so Im very pleased.

Just watch out for thr daily withdrawal limits Al Ryan 20K

Gatehouse no limit. Thats what they said when I called.

Albermarle

You have a temporary high balance FSCS protection for £85k per person per financial institution. If you need to deposit your money for more than 6 months, rather than splitting your money, you can consider NS&I, though they have dreadful interest rates.  

The £85K per person is the normal compensation limit. The temporary high balance protection is much higher, if certain criteria are met .

If your bank fails... | FSCS

fourmarks

I've just done this recently. Some of the best easy access or notice accounts are - Allica Bank - 2.26%. Oak North - 2.3%.Coventry and Cynergy - 1.85%.Paragon - 1.9% Shawbrook, Nationwide and Secure Trust Bank - @1.75%, and a few more besides. In six weeks I've had to update or move a number of accounts as further interest rate rises continue to creep in.

NB. Easier to open the accounts before you change address, as some institutions have allergic reactions to new addresses and make life more complicated in terms of identity verification.  Principality B.S. and  Virgin M were particularly useless and I gave up on them. Might just be me of course.

.

fourmarks

P.S.  All the above will take £85k.  And a lot more if you want to go above that limit.

Flick85

I’ve just done this… 50k into Premium Bonds, 20k into an ISA, 85k into ZOPA choosing 31 day notice version, 25k into Virgin, and the rest into CHASE. I’m completing on my purchase in December though, so only had to park the money for 5 months. 

The 85k FCFS protection does go higher when it’s proceeds from a house sale, but there are conditions worth looking at. I did have some fraud alert issues with transferring large amounts into new savings accounts, but got there eventually.

Daliah

@felicityBD15 check that you know the daily withdrawal limits so you can get all your required money ready for completion day

Flick85

Daliah said:

@felicityBD15 check that you know the daily withdrawal limits so you can get all your required money ready for completion day

Thanks. But yup, I’m on it. Had a nightmare doing the transfers out - took 4 days because of 50k limits, so I have already planned how to do it the other way and confirmed solicitors happy to receive it over a few days :-)

jicms

Thanks everyone. I'll probably go with Al Rayan. We should be eligible for the FSCS temporary high balances cover as we're selling our main home. We don't plan on making withdrawals until we buy our next home. 

Albermarle

jicms said:

Thanks everyone. I'll probably go with Al Rayan. We should be eligible for the FSCS temporary high balances cover as we're selling our main home. We don't plan on making withdrawals until we buy our next home. 

The temporary high balance cover is only effective for 6 months maximum.