Very Short term money

HolgateEnder

We are selling our property in November but out new build wont be ready until Jan. I'll have upwards of £500,000.  Where do I put it?

subjecttocontract

Who do you bank with ?
Do they have an easy access savings account available ?
£500K @ 4.8% pays £4K for 2 months.....less tax.

aroominyork

How about TN24 yielding 5% with very little taxable. https://www.londonstockexchange.com/stock/TN24/united-kingdom/company-page

Plenty of threads recently about nominal gilts.

GeoffTF

If you are wobbly kneed, you could consider National Savings, which is 100% guaranteed by the government.

ColdIron

HolgateEnder said:

Where do I put it?

What do you want to achieve?

You could leave it where it is and be protected up to £1 million for 6 months

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

You could put it all in an NS&I account with equivalent protection, perhaps a Direct Saver

https://www.nsandi.com/products/direct-saver

Or you could chop it up into several accounts for higher interest within the £85,000 FSCS protection (£170,000 as a couple)

If it were me I would value accessibility over return over such a short period

As I say, what do you want to achieve?

Richard1212

For 7 or 8 weeks , I don't see that it matters whether it's in a current account or put into temporary savings by your bank. I see no point in such circumstances in splitting it all up to obtain best interest rates all over the place. Just keep it safe and don't put it into a single Easy Access Saver or anything like that.

wmb194

Richard1212 said:

For 7 or 8 weeks , I don't see that it matters whether it's in a current account or put into temporary savings by your bank. I see no point in such circumstances in splitting it all up to obtain best interest rates all over the place. Just keep it safe and don't put it into a single Easy Access Saver or anything like that.

Apart from passing up on the easiest c.£4k you'll ever make, that is.

subjecttocontract

Richard1212 said:

For 7 or 8 weeks , I don't see that it matters whether it's in a current account or put into temporary savings by your bank. I see no point in such circumstances in splitting it all up to obtain best interest rates all over the place. Just keep it safe and don't put it into a single Easy Access Saver or anything like that.

Why not a single easy access saver ?  The OP doesn't need to worry about fscs protection.....he/she is covered up to £1million.

friolento

subjecttocontract said:

Richard1212 said:

For 7 or 8 weeks , I don't see that it matters whether it's in a current account or put into temporary savings by your bank. I see no point in such circumstances in splitting it all up to obtain best interest rates all over the place. Just keep it safe and don't put it into a single Easy Access Saver or anything like that.

Why not a single easy access saver ?  The OP doesn't need to worry about fscs protection.....he/she is covered up to £1million.

Quite a few savings accounts have a max balance limit, £250k or even less. E.g. Shawbrook easy access is max £85k. 

eskbanker

Just to repeat a point highlighted by another poster previously about the FSCS temporary high balance provision, it is potentially less reliable than their normal cover.

The standard £85K cover entails a swift turnaround (usually):

FSCS aims to pay compensation within 7 days of a bank or building society failing. More complex cases will take longer.

The enhanced temporary high balances cover involves some judgement and much more time:

FSCS cannot confirm the eligibility of a particular temporary high balance unless/until a bank or building society actually fails. This is because we’d need to review all of the available evidence to check that there was a sufficient connection between the relevant life event and the sums in the depositor’s account.

[...]

To prove you've held a temporary high balance we may ask for proof...

[...]

...the evidence required will depend on the life event of your individual circumstances. If you provide the relevant supporting evidence, we'll pay you compensation within three months.

lohr500

Personally I wouldn't be too concerned over putting the full £500k + in a single account so long as the institution had FSCS protection. Yes, in the unlikely event of the institution failing it could take up to 3 months to get your cash back, but I would have thought the risk of failure was minimal.

If you went with a high street name like the Post Office today, they are paying 4.7% easy access with a deposit limit of £1M.

Who knows what the rates on offer will be in November, but for a couple of months,I'd be going down the single institution route rather than splitting into smaller £85k chunks (£170k joint a/c).