Very Short term money

Albermarle

lohr500 said:

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). 

Probably worth noting that the Post Office often feature in this forum regarding their clunky systems and poor customer service.

eskbanker

lohr500 said:

...a high street name like the Post Office...

Obviously Post Office is a high street name in the very literal sense, but its savings products are actually provided by Bank of Ireland and just badged with the PO name.

phlebas192

HolgateEnder said:

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?

As others have pointed out, you will be fully protected by the FSCS as long as it is in an account covered by this. But the real risk here is not that you might not get the money back eventually, but that you might lose your new home or be faced with significant extra charges if the bank goes bust and you need to wait a few months to get compensated. As such I would only consider NS&I or a major high street bank as a temporary home.

Selling in Nov & buying in Jan could be anything from just over one month to nearly three. If it's close to the former, I would probably just leave it in your current bank (especially if they have a suitable savings account it could be moved to). The longer the period, the more I would be inclined to put it in NS&I - but bear in mind that depending on your bank it could take some time to transfer the whole lot over there and will take a few days to get back so you won't get the full theoretical interest.

Swipe

phlebas192 said:

HolgateEnder said:

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?

As such I would only consider NS&I or a major high street bank as a temporary home.

I certainly would not consider NS&I if you need access to your funds quickly for a house purchase, as if something happens to go wrong for whatever reason, their incompetence knows no bounds.

km1500

.Temporary high balance protection .. always providing of course that the 'our property' they are selling is a main residence.

jimjames

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. 

Would would you not want to earn £4k by keeping it in savings not current account? I know your wealth manager probably wouldn't get out of bed for that but mere mortals could find it quite handy.

Bravepants

jimjames 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. 

Would would you not want to earn £4k by keeping it in savings not current account? I know your wealth manager probably wouldn't get out of bed for that but mere mortals could find it quite handy.

£4k would certainly buy more than a few sticks of furniture for the new pad!