Short term savings

Toulousepickney

Good evening 

I expect to buy a property in the next three months and need somewhere to tuck away my deposit of £200,000 until it is needed.

With the FCS regulations, any suggestions as to where I should deposit this money in the short term please?

eskbanker

Not sure if you're referring to the FSCS protection and if so, in what way you mean it - this is normally £85K per person per institution but the temporary high balances provision protects up to £1m for up to six months for certain life events, including purchasing a main residence, so your choice is pretty much unlimited, although you'd obviously want something easy access:

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#easyaccess

Yorkie1

eskbanker said:

Not sure if you're referring to the FSCS protection and if so, in what way you mean it - this is normally £85K per person per institution but the temporary high balances provision protects up to £1m for up to six months for certain life events, including purchasing a main residence, so your choice is pretty much unlimited, although you'd obviously want something easy access:

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#easyaccess

Does this higher protection include simply buying a house without having sold one previously? I hadn't realised that.

eskbanker

Yorkie1 said:

eskbanker said:

Not sure if you're referring to the FSCS protection and if so, in what way you mean it - this is normally £85K per person per institution but the temporary high balances provision protects up to £1m for up to six months for certain life events, including purchasing a main residence, so your choice is pretty much unlimited, although you'd obviously want something easy access:

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#easyaccess

Does this higher protection include simply buying a house without having sold one previously? I hadn't realised that.

There's no qualifying condition about a prior sale in the FSCS guidance, although to be fair they do caution that all claims are judged on their merits:

• We can’t confirm whether a particular temporary high balance is protected unless your bank, building society or credit union actually fails.This is because we need to review all available evidence to check there’s a sufficient connection between the relevant life event and the sums in an account before we can make a decision.

Qualifying life events and evidence required

Certain life events could have caused a temporary high balance in your bank account, including:

• Real estate transactions (property purchase, sale proceeds, equity release. This doesn't have to be a UK property but must relate to your main residence).
• [...]

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

jimjames

Yorkie1 said:

eskbanker said:

Not sure if you're referring to the FSCS protection and if so, in what way you mean it - this is normally £85K per person per institution but the temporary high balances provision protects up to £1m for up to six months for certain life events, including purchasing a main residence, so your choice is pretty much unlimited, although you'd obviously want something easy access:

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#easyaccess

Does this higher protection include simply buying a house without having sold one previously? I hadn't realised that.

That's a good question. Because presumably for the FSCS to kick in it would mean that you haven't bought a house yet. So if you are saving up for one, how would the 6 months be defined? It can't be from purchase because that hasn't happened so could it be when the balance goes over £85k and you then have 6 months?

Bigwheels1111

Just split the cash into 3 or more accounts, with different banks.
Chase bank 5%, Atom 4.85%, Chip 4.85% All easy access and near instant withdrawals.
Chase does not do a hard search.
Select rate order.

https://moneyfactscompare.co.uk/savings-accounts/easy-access-savings-accounts/?quick-links-first=false&product-favorites-first=false&sort-order=AER&sort-order-text=Rate