Where to put £150,000 for 6-8 weeks

SueAyl

I'm expecting a lump sum death benefit pension payment and I'm going to use it to pay off my mortgage. Any thoughts on what to do with the money between receiving it in my bank account and the date I can pay off my mortgage?

Vitor

Yep, instant access savings account.

Albermarle

Your bank will most likely have an easy access savings account. It will not be the best interest rate though.

Or you can open a new easy access account with someone else with a better rate . Usually they are easy and quick to open, but sometimes there can be delays whilst they check ID, and there might be questions about where such a large sum of money came from.

If the difference in interest rate was say 1.5%, then for £150K for 6 weeks that = £250

saajan_12

What are the terms of your mortgage? If you can overpay 10% without fees perhaps do that straight away.

I would open the best savings account you can and deposit £1 now, so that the ID admin is done. Then when you receive the inheritance, transfer that in. Some high street banks have pretty poor rates even 2-3% lower so IMO its worth targetting the extra interest.

flaneurs_lobster

Who's the mortgage with? They might have an easy access account that would suit, might save a bit of admin when you pay it off.

Sam_666

Most likely you wont be able to pay off mortgage without penalty, except for 10% of balance.

Were do YOU think you should keep that money for 6-8 weeks?

gt94sss2

It should be covered by https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/

Aretnap

What interest rate are you paying on your mortgage? If your mortgage rate is fairly low (for example if you are still on a fixed rate from before 2022) then paying it off immediately might not be your best option, especially if there are penalties for paying it off early.