Savings Account

Mike_May73

Hi. We are in the process of selling our house and there will be a gap of 4-6 weeks before we move in. We will have around £250,000 to bank for that iinterim period and I was wondering:
a) Do we need to split the amount into separate accounts? or
b)Put it into one account to gain the maximum interest over a short period.

Any assistance will be greatly appreciated

eskbanker

Splitting into multiple accounts is normally only considered as a way of protecting savings by virtue of the FSCS £85K limit, but they offer coverage of temporary high balances of up to £1m for up to six months for sums relating to significant life events, such as selling your home, so no need to consider splitting here:

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

flaneurs_lobster

Just a single account will be fine. Do you have a suitable account available? Chase have an easy access savings account available (if you have their current account) paying 5%.

Mike_May73

Thanks for the responses. I have just opened a Chase account and will be putting the money into the Boosted savings account albeit for a relatively short time.

Mike_May73

My wife and I are 68, I am still fully employed and will be for at least another 17 months. My wife is able to earn 1000 per month and I hope to be able to do the same in 2027. We are both on a state pension with only a small private pension but I have the ability to earn around 100,000 in the next year or so which will allow us to save a substantial amount. My question: In buying a new property, is it best to go for a repayment mortgage or an interest only? We would need to borrow about 150k for 10 years.

Albermarle

This forum would be better for that question.
Mortgages & endowments — MoneySavingExpert Forum

Mike_May73

Thanks- new to this malarkey!

allegro120

Mike_May73 said:

My wife and I are 68, I am still fully employed and will be for at least another 17 months. My wife is able to earn 1000 per month and I hope to be able to do the same in 2027. We are both on a state pension with only a small private pension but I have the ability to earn around 100,000 in the next year or so which will allow us to save a substantial amount. My question: In buying a new property, is it best to go for a repayment mortgage or an interest only? We would need to borrow about 150k for 10 years.

I used to have interest only mortgage, but I think this type of mortgage has been banned very long time ago. 

eskbanker

allegro120 said:

I used to have interest only mortgage, but I think this type of mortgage has been banned very long time ago. 

They're less common than they used to be pre-GFC and will generally have stricter eligibility criteria, but they certainly weren't banned:

https://www.natwest.com/mortgages/mortgage-comparison/interest-only-mortgage.html#do-we-offer-them