Where to 'park' money

vacheron

It may just be me, but I can't see the fascination with premium bonds, especally as most of the discussion seems to be how to mitigate all the short term / timing risks of owning them?

Remember, the OP said they would probably need the money in "less than 6 months" this could be 1 month or 2 as they appear keen to move soon and this could be up to £60K….. meaning you couldn't put it all in premium bonds anyway?

If it was £60K, just put it in a 4.5%+ instant account and earn a guaranteed £7.40 per day (£225 per month).

Assuming they are a BR taxpayer with no other taxable interest, that's a guaranteed 4.5-5% with zero tax to consider for at least the first 4 1/2 months as opposed to "you'll most likely get 3%" 🤷‍♂️.

friolento

https://forums.moneysavingexpert.com/discussion/comment/82035581#Comment_82035581

they ask you if you want to delay until after the next draw. You are free to say yes or no, whatever suits.

masonic

After a couple of bad experiences, NS&I is not a place I would put any money I might need in a hurry. If going down this route (although I can't imagine why anyone would) I would just caution to move the money to a more accessible location several days in advance of it being needed for something important like a house purchase.

jimjames

https://forums.moneysavingexpert.com/discussion/6672571/where-to-park-money

If you're really not bothered about interest (although for over £1000 that's really not very MSE!!) then just leave it in your current account and you'll have instant access. Not the best way to make money from it though.

Newbie_John

Well you don't need to park it there for entire time till the house purchase.

The person is waiting for money - could be months.

The person is trying to sell their house - could be months.

The person is looking to buy a house - could be months.

Premium bonds where mentioned as alternative to saving accounts, we approaching end of the month so good time to buy them in the next two weeks. Also, with buying house you know the dates in advance, you don't need to cash out at the very last minute - just do it at the begin of the month close to the purchase.

And regarding Premium Bonds in general, it's a good alternative for parking big chunk of cash - it could be a good opportunity to try your luck with earning more interests, and if it doesnt play well you won't bother again with them like @masonic :)

LHW99

Just remember, if you do plan to use this for house purchase, solicitors now need "source of funds" details, so keep track of all relevant paperwork.

masonic

https://forums.moneysavingexpert.com/discussion/comment/82036295#Comment_82036295

Indeed. For my recent purchase, the solicitor required statements showing movement of funds through to the current account I used to send to them at completion.