Large sum of money for a short period of time - How to maximise earnings

aroominyork

Can others please help? I think HL has no charge for holding gilts (whereas ii would have an account charge) so might be a good option?

boingy

Not sure gilts are the best option here. They are not easy to understand and the OP does not know when they will need the money. Maybe the right house pops up tomorrow. Maybe it takes 6 months or more.

Easy access savings and ISAs are definitely the way.

Albermarle

boingy said:

Not sure gilts are the best option here. They are not easy to understand and the OP does not know when they will need the money. Maybe the right house pops up tomorrow. Maybe it takes 6 months or more.

Easy access savings and ISAs are definitely the way.

I agree.
The OP clearly has no experience of investing or investment platforms. So much simpler to stick with savings accounts in this case,

aroominyork

Maybe that's fair, but depending on how large a sum and if the OP doesn't want to open multiple £85k accounts, it's an option is s/he reads up and udnerstands gilts.

HHarry

Temporary high balances of uo to £1 million are protected for 6 months, so need to to sort it into £85k chunks.

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

eskbanker

HHarry said:

Temporary high balances of uo to £1 million are protected for 6 months, so need to to sort it into £85k chunks.

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

Did you mean 'no need'?

I posted a potential concern earlier about how this provision might not be suitable if the money is moved from joint ownership into a sole name ("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"), and there is always the discretion and timescale caveat to consider too:

To prove you've held a temporary high balance, we may ask for proof which could include (but not be limited to) the following:

• [...]

This list isn't exhaustive and 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.

HHarry

Sorry, yes I meant ‘not’ need.

I understand the point about losing the protection in some circumstances, but there might not be the need to transfer the funds from joint to sole ownership.  Open an easy access joint account at a decent rate and get the conveyancer to deposit the funds straight into it.  £1M protected for 6 months.

I understand this is MSE and using ISA’s to save some tax is the optimum.  But saving a bit of tax on the interest on £80k out of “a large balance” (for 2 months) by opening multiple accounts to deposit less than £85k, seems like a lot of work.

Nardy

VXman said:

I think your only options are instant access savings. Should be able get around 5%. If it's a large sum tax an ISA might be an issue as you may exceed your £1000 interest allowance. £20K now and 20K after April. Also it might be a good idea to get several accounts with different banks to cover your £85K government backed protection limit.

Instant savings 

https://www.money.co.uk/savings-accounts/instant-access-savings/pm-1?track=885130&inset-cookie-banner&utm_accountid=2259221394&utm_source=google&utm_medium=cpc&utm_term=instant access savings&utm_cmpid=15771777287&utm_adgid=128662365341&utm_tgtid=kwd-24196410&utm_mt=e&utm_adid=572684263392&utm_dvc=c&utm_ntwk=g&utm_plcmnt=&utm_locphysid=1006933&utm_locintid=&utm_feeditemid=&utm_devicemdl=&utm_plcmnttgt=&gclid=CjwKCAiA29auBhBxEiwAnKcSqkzBnNa5SIXlpGelW5CG_WAnkVBw62UU3RNcPijsCodKPPrHBNaxrxoCM5MQAvD_BwE#instant-and-easy-access-savings-accounts-deals

ISA (must be a flexible one)

https://www.moneysavingexpert.com/savings/best-cash-isa/

Hopefully this shorter link works as well as the one above.

https://www.money.co.uk/savings-accounts/instant-access-savings/pm-1

Cntyta

HHarry said:

Sorry, yes I meant ‘not’ need.

I understand the point about losing the protection in some circumstances, but there might not be the need to transfer the funds from joint to sole ownership.  Open an easy access joint account at a decent rate and get the conveyancer to deposit the funds straight into it.  £1M protected for 6 months.

I understand this is MSE and using ISA’s to save some tax is the optimum.  But saving a bit of tax on the interest on £80k out of “a large balance” (for 2 months) by opening multiple accounts to deposit less than £85k, seems like a lot of work.

The main reason to open the account in my spouses name is all the interest is tax free (up to the tax allowance) - Or am I missing anything?

The total amount is >800K so, yes, opening separate account may be a bit painful to manage...

Cntyta

And thanks everyone for all your comments and help!

Definitely, I need to get better with our finances and investment options... Im clueless!!