House sale investment

peteques

Hi all - I'm about to sell my house and move into partner's house. The house will sell for 280k. I would like to save / invest this money and probably dont need quick access - however with interest rates rising not sure to lock away or not. Could anyone advise how they might make the money work? I know I need to split it up into different institutions as per FSCS and also I know the interest alone would put me above my PSA - is there anything I can do to avoid this? Thanks

jcuurthht

https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/

FSCS protects temporary high balances in your bank account, building society account or credit union account of up to £1million for 6 months. The protection begins from the date the temporary high balance is credited to an individual depositor's account, or to a client's account on an individual's behalf. This date may be earlier than the date the temporary high balance was credited to your account with the failed firm. You don't need to tell us if you have a balance higher than £85,000.

I would recommend reading the following advice regarding receiving a lump sum: https://ukpersonal.finance/lump-sum/

Bigwheels1111

Avoiding tax no, just get the best rates and accept the tax bill.
Only fund accounts with say 80k annual payout, if rate is 4% or 5% as with interest added you will be at 84k or 85k.
So savings and interest will be protected by FSCS.
I funded an account with 85k, before I understood I could loose out on interest if bank went bust.

Albermarle

I would like to save / invest this money and probably dont need quick access -

You could consider investing some of it, as in the long run, investments have some good hope of beating inflation, whilst cash savings will always struggle. However you really need to invest for the longer term to have a better chance of success. This means ideally > 10 years, although as long as you can leave them alone for 7 or 8 years, that could be worth a go.

For the longer term still, adding more to a pension is usually a good idea.

biscan25

I said this a lot over the last few days, but gilts look like good value. If you buy the low coupon 0.125% variants, you won't incur any tax liability above your savings allowance on that sum of money.
Interest rates have come down a fair bit since yesterday, but currently 1 year 3.9%, 2 year 4.2%. 3 year 4.3%
Obviously there's a teensy chance of government default, but if that happens the FSCS guarantee would be long gone anyway.