Where to put large sum inbetween buying

jones_guitar

Hi, I am just about to receive sum of money, which will be used to purchase - part cash. I have no idea where I'd put it inbetween buying? I was going to put it into an investment platform.

user1977

In between buying and...what? What sort of timescale are you talking about? More of a savings question than a house-buying one really, you can get advice about savings accounts etc elsewhere on the site.

Grizebeck

Coventry triple limited access saver

Emmia

How quickly are you intending to spend the money? If it's less than 5 years, I'd probably avoid an investment platform and would put it in fairly instant access savings / premium bonds etc.

Whilst investments might offer the prospect of a better return, they also open the door to bigger losses... Can you afford for the market to drop before you buy? could you lose 10% of the value (for example) or would you need to wait for the money held in investments to go back up again, delaying the purchase...

penners324

Find a decent interest savings account if it's a few months.

RHemmings

Grizebeck said:

Coventry triple limited access saver

I had a look at the account online, and the example they give for interest seems to suggest that interest is paid annually. That would work for people who will purchase more than a year in the future. But, it's not so useful for people such as myself who hope to be completing much sooner than that. Or, do I have it wrong? 

SiliconChip

RHemmings said:

Grizebeck said:

Coventry triple limited access saver

I had a look at the account online, and the example they give for interest seems to suggest that interest is paid annually. That would work for people who will purchase more than a year in the future. But, it's not so useful for people such as myself who hope to be completing much sooner than that. Or, do I have it wrong? 

Yes, you have it wrong. If you close the account to use the money elsewhere then interest will be paid at the date of closure for the period that the account has been open. All accounts that aren't for a fixed term work like that (and even some fixed term ones, although generally only ISAs where you request an ISA transfer to another provider).

Jonboy_1984

If you do keep it in “cash” accounts (current, savings etc) make sure you under the protection limits:

https://www.fscs.org.uk/news/protection/bank-fails/

In particular watch out for joined institutions.

propertyrental

Jonboy_1984 said:

If you do keep it in “cash” accounts (current, savings etc) make sure you under the protection limits:

https://www.fscs.org.uk/news/protection/bank-fails/

In particular watch out for joined institutions.

The protection limit for money from, or destined for, a property purchase is £1m.

" We protect certain qualifying temporary high balances up to £1 million for 6 months from when the amount was first deposited."

Investment via an investment platform s only really sensible if you won't need the money for 5 + years.

Find the best paying cash savings account. If you might need the money at short (or medium) notice, stick to instant acess accounts.

Check here for current best paying accounts:

https://forums.moneysavingexpert.com/discussion/6392978/top-easy-access-acs-ranked-top-of-the-pots-no-chat/p1

RHemmings

SiliconChip said:

RHemmings said:

Grizebeck said:

Coventry triple limited access saver

I had a look at the account online, and the example they give for interest seems to suggest that interest is paid annually. That would work for people who will purchase more than a year in the future. But, it's not so useful for people such as myself who hope to be completing much sooner than that. Or, do I have it wrong? 

Yes, you have it wrong. If you close the account to use the money elsewhere then interest will be paid at the date of closure for the period that the account has been open. All accounts that aren't for a fixed term work like that (and even some fixed term ones, although generally only ISAs where you request an ISA transfer to another provider).

Thanks. I'm going to drop in to the Coventry and find out more about this account.