deposit a large sum - which account

jarv81178

If I was to have a large sum of money deposited to my bank, should it be my current account or ISA? I think there is a limit of £20k on my ISA. Or should I open a seperate account? I will probably be using this money in about 8 months time to pay off my mortgage

or do I keep it under my mattress in case banks fold

wmb194

jarv81178 said:

If I was to have a large sum of money deposited to my bank, should it be my current account or ISA? I think there is a limit of £20k on my ISA. Or should I open a seperate account? I will probably be using this money in about 8 months time to pay off my mortgage

or do I keep it under my mattress in case banks fold

Deposit it to your current account and then divvy it up from there. The best paying short-term savings accounts sound appropriate for your situation but whether this includes an Isa will depend on how much interest you expect to earn and your tax band.

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

km1500

you are protected up to.85k per institution anyway.

I would open a savings account eg Marcus but others pay a bit more. Put money in current account then xfer to Marcus.

If over 85k open a second savings account

wmb194

km1500 said:

you are protected up to.85k per institution anyway.

I would open a savings account eg Marcus but others pay a bit more. Put money in current account then xfer to Marcus.

If over 85k open a second savings account

Depending on the source, there might be an additional temporary high balance protection, too.

Band7

you need to look for the FSCS protection. Don’t go anywhere near accounts that do not have it


https://www.moneysavingexpert.com/savings/safe-savings/

allegro120

jarv81178 said:

If I was to have a large sum of money deposited to my bank, should it be my current account or ISA? I think there is a limit of £20k on my ISA. Or should I open a seperate account? I will probably be using this money in about 8 months time to pay off my mortgage

or do I keep it under my mattress in case banks fold

Deposit to current account first.  Then open instant access savings account/s and transfer money there.  There's a wide range of instant access accounts that pay 3.2% and above to choose from.  Don't put more than £85k into one single account.

[Deleted User]

Hi,

jarv81178 said:
or do I keep it under my mattress in case banks fold

if you're talking about a chunk of cash, bank may have some questions about the source of the funds, money laundering checks.

Albermarle

Don't put more than £85k into one single account.

Unless it is with N S & I, where you can safely add as much as you like.

Swipe

Albermarle said:

Don't put more than £85k into one single account.

Unless it is with N S & I, where you can safely add as much as you like.

Utterly rubbish customer service being the only caveat 

Beddie

Current account first. Then you can move £20k to an ISA and another £20k on the 6th April. The remainder into an easy access savings account, you could always put up to £50k in premium bonds if you're feeling lucky!
Someone posted the link to moneyfacts above, they list all the best rates.