Best short term interest

emilyp89

Hi,
I've just inherited about £118k from the sale of my late father's house. I am using it as a deposit to buy my first home but it will be about 3-6 months until completion. While the money is just sitting in my bank, is it a good idea to put it in an instant savings account to grow a little?
I'm with Monzo and have an instant savings account at 3.25% is that worth using or should I put it somewhere else?

DRS1

Have a look at page 1 of this thread
Top Easy Access acs Ranked: Top of The Pots - **No Chat** — MoneySavingExpert Forum

If you are using it as a deposit you will need it for exchange not completion (but hopefully you won't be using the full £118K for a deposit?)

Some people worry about the £85k protection - you probably have higher cover for a period but I am not sure if that changes if you move the money around.  Just consider whether to split the amount in two perhaps?

On-the-coast

While you’re thinking, stick it in your monzo saving account at least temporarily and you’ll earn just over £10 / day interest (paid monthly)

Albermarle

DRS1 said:

Have a look at page 1 of this thread
Top Easy Access acs Ranked: Top of The Pots - **No Chat** — MoneySavingExpert Forum

If you are using it as a deposit you will need it for exchange not completion (but hopefully you won't be using the full £118K for a deposit?)

Some people worry about the £85k protection - you probably have higher cover for a period but I am not sure if that changes if you move the money around.  Just consider whether to split the amount in two perhaps?

A family member got confused about this recently.

When you apply for a mortgage you say much deposit you have to put down.
When you exchange contracts you usually have to pay a 10% deposit on the value of the house.
However the two deposits are not the same, which can be confusing for a FTB !

eskbanker

Albermarle said:

A family member got confused about this recently.

When you apply for a mortgage you say much deposit you have to put down.
When you exchange contracts you usually have to pay a 10% deposit on the value of the house.
However the two deposits are not the same, which can be confusing for a FTB !

You may recall that the ambiguity of the term 'deposit' used to come up regularly in HTB ISA threads (where the distinction was particularly important), and the MSE article included a helpful definition to clarify:

https://www.moneysavingexpert.com/savings/help-to-buy-isa/#tip10