£200,000 to save short term. Where ???

Kellm9

Hi,

Our house is sold but we have not bought yet. So I have £200k to stash somewhere. I might need it quick if we buy another house (renting at the mo). Does anyone have any suggestions ? I suppose I need a good rate and instant ~ couple weeks access. I have read the savings thing on here about splitting £35k into numerous different accounts, is that really practical for the likes of my situation ?

I just feel we could earn some interest for ourselves rather than leave it with our lawyer.

Cheers
Kellm9

meester

if you are worried about the 35k stick it in National Savings or Northern Rock. Got to better than leaving it with the lawyer!

Kellm9

meester wrote: »

if you are worried about the 35k stick it in National Savings or Northern Rock. Got to better than leaving it with the lawyer!

Hi meester,

Yeah, definately not leaving with lawyer. I can get 5.5% gross and 4.4% net in my Natonwide e-savings account with instant access. That's probably decent for the short term and minimal hassle factor.

Thanks

ad44downey

Kellm9 wrote: »

Hi,

Our house is sold but we have not bought yet. So I have £200k to stash somewhere. I might need it quick if we buy another house (renting at the mo). Does anyone have any suggestions ? I suppose I need a good rate and instant ~ couple weeks access. I have read the savings thing on here about splitting £35k into numerous different accounts, is that really practical for the likes of my situation ?

I just feel we could earn some interest for ourselves rather than leave it with our lawyer.

Cheers
Kellm9

Stick it on Man utd to beat the Spuds in the FA Cup.

isofa

I'd recommend Icesave for this, good instant access and excellent rate, no catches.
(But there are others, ICICI, Tesco, Sainsbury's etc, or review the best instant access accounts in any Sunday Newspaper Money supplement)

I certainly wouldn't worry about splitting into 35K chunks, especially for a short term investment.

Fella

Lend it to someone who has an offset mortgage. Split however much profit you make (i.e. how much they save in interest versus what you'd get in your savings account) 50/50 with them.

Of course you have to trust them So you probably only want to consider relatives. Maybe.

isofa

200K in Icesave at 6.3% will yield roughly £242 per week in interest, or about £1050 per month...
(that's gross interest)

Cozworth806

How about putting it Derby to be relegated? Not much more of a deadcert than that one!

Seriously I would look at ICICI as they are still paying 6.41% gross, and it is also available monthly, which could either help with your rental costs or go towards your legal fees. It pays about 5%pa (taken monthly) net, or £833pm

I am in the same position but am not looking for a house to buy at present, also the equity in my sale only came to £66,000 so I have managed to pay off some debts and save at an average rate of 6.6% by going into fixed rates.

Fella

call me paranoid but there is no way in a million years I'd put the whole £200K in one institution, esp not a purely online one.

Even a 0.01% chance of effectively losing your house is too much chance to take for some interest £. And it's not like we aren't in a time when no-one knows anything for sure about the state of any bank.....

peawack

Not the best time to buy, anyway. Put the money in the Nationwide (safe as houses), at 6.45% for one year. Then look for a house in one year time.

isofa

Fella wrote: »

call me paranoid but there is no way in a million years I'd put the whole £200K in one institution, esp not a purely online one.

Even a 0.01% chance of effectively losing your house is too much chance to take for some interest £. And it's not like we aren't in a time when no-one knows anything for sure about the state of any bank.....

Paranoid :rolleyes: lol But you should do what you feel safe with.

Personally if I had that sort of money to invest I wouldn't have a problem putting it in a decent single account for a short term period, or longer.

There are so many scare stories around, and the mess with NR have put a lot of jitters about, but has anyone lost their deposits? No, and I can't see it ever happening in this country either, otherwise people will withdraw all their cash from all banks en-mass, leaving the whole sector destroyed.