Where to save a lump sum?

BrandyDog1980

Hi everyone

I’ve recently sold my house and moved to a rental to be in a better position to buy. I have a lump sum and want to know how to make the most of this without any risk.

Is a fixed savings account the best way? I can’t fix really for any longer than 6 months with not knowing when we’ll find a house to buy.

thanks

MeteredOut

Fixed savings account less than a year are rare, so a standard easy access savings account is probably best/easiest. If you've not used ISA allowances this year, and the interest over the 6 months would result in you paying tax, using your (and partners?) £20K ISA allowance would save you a little bit.

You might want to look at restricted accounts too, where you can withdraw the money early, but for an interest penalty. Do the maths in comparing these to an easy access account based on when you realistically think you'll need the money.

You have extra protection above the standard £85K FSCS protection for proceeds of main residence property sales. See Qualifying Life Event: 

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

Some people also recommend NS&I savings which have a level of government protection for the whole amount.

xylophone

https://www.moneysavingexpert.com/savings/safe-savings/

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

In your circumstances,  easy access savings account(s) would seem the best option?

 For example, Leeds BS, Tesco and Shawbrook currently offer over 4% annual interest on easy access accounts.

Eyeful

1. Read about "Temporary High Balance Protection" : 
https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/

2. Find a suitable Savings Account for your needs:
https://moneyfactscompare.co.uk/savings-accounts/

3. Check the FCA register that they are authorised and get their Firm Register Number (FRN):
https://register.fca.org.uk/s/
Example: Leeds Building Society FRN =  164992

4. Always check for yourself ,that the savings account has FSCS Savings Protection. Type in the FRN
https://www.fscs.org.uk/check/check-your-money-is-protected/

Bigwheels1111

Chase bank could be a good start. 4.5% instant access for new customers.
Plus Chase don’t do a credit check.
85k FSCS Protection.