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  • FIRST POST
    • Lynn107
    • By Lynn107 11th Feb 18, 10:27 PM
    • 13Posts
    • 1Thanks
    Lynn107
    180k to invest for 6 months, but where?
    • #1
    • 11th Feb 18, 10:27 PM
    180k to invest for 6 months, but where? 11th Feb 18 at 10:27 PM
    I sold my house last Tuesday and relocated to a different part of the UK to be near my son & grandchildren. I am renting for 6 months until I find a property to buy and the sale proceeds of 180k are currently in my First Direct bank, 5k in my ISA and the rest in my e-saver. I have little understanding of investments & savings so could someone please advise on how I can maximise the interest as every penny now counts as I find myself on my own at a not so young age! Also, I understand that up to 85k is protected by the FSCS but as I have 180k should I have 3 different accounts with different banks, or is that being overly cautious?
Page 1
    • AnotherJoe
    • By AnotherJoe 11th Feb 18, 10:34 PM
    • 9,019 Posts
    • 9,904 Thanks
    AnotherJoe
    • #2
    • 11th Feb 18, 10:34 PM
    • #2
    • 11th Feb 18, 10:34 PM
    Up To 1M from a house sale is protected for six months as an exception to the normal 85k limit, and NS&I have a 1M limit as well.
    In your case you don't want "investments" which means stocks and shares you want savings.

    For simplicity you can put it all in NS&I but you can always look around and see if you can find some accounts with instant access (not 1 year fixed periods) offering more than what they do. Look above at the savings links. 1.3% seems to be about the max you'll get.

    Edit; A quick glance shows some accounts offering about 0.5% more than NS&I which my back of a fag packet calculation says is worth about 450 so perhaps look at the links above and split over a couple of the higher paying accounts.
    Last edited by AnotherJoe; 11-02-2018 at 10:40 PM.
    • aroominyork
    • By aroominyork 11th Feb 18, 11:02 PM
    • 420 Posts
    • 122 Thanks
    aroominyork
    • #3
    • 11th Feb 18, 11:02 PM
    • #3
    • 11th Feb 18, 11:02 PM
    Bank and Clients have a six month notice account paying 1.5%. There is nothing to stop you giving six months' notice the day after you open the account.
    • Thrugelmir
    • By Thrugelmir 11th Feb 18, 11:17 PM
    • 58,190 Posts
    • 51,563 Thanks
    Thrugelmir
    • #4
    • 11th Feb 18, 11:17 PM
    • #4
    • 11th Feb 18, 11:17 PM
    50k can be lent to the Government and used to buy premium bonds.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Lynn107
    • By Lynn107 12th Feb 18, 9:26 AM
    • 13 Posts
    • 1 Thanks
    Lynn107
    • #5
    • 12th Feb 18, 9:26 AM
    • #5
    • 12th Feb 18, 9:26 AM
    But I'll need it in 6 months to buy a house. I don't understand how premium bonds work or the return...
    • Lynn107
    • By Lynn107 12th Feb 18, 9:29 AM
    • 13 Posts
    • 1 Thanks
    Lynn107
    • #6
    • 12th Feb 18, 9:29 AM
    Bank and Clients?
    • #6
    • 12th Feb 18, 9:29 AM
    Thankyou, but what is Bank and Clients?
    • Lynn107
    • By Lynn107 12th Feb 18, 9:31 AM
    • 13 Posts
    • 1 Thanks
    Lynn107
    • #7
    • 12th Feb 18, 9:31 AM
    Bank and Clients?
    • #7
    • 12th Feb 18, 9:31 AM
    Thank you, but what is Bank and Clients?
    • Lynn107
    • By Lynn107 12th Feb 18, 9:32 AM
    • 13 Posts
    • 1 Thanks
    Lynn107
    • #8
    • 12th Feb 18, 9:32 AM
    Bank and Clients?
    • #8
    • 12th Feb 18, 9:32 AM
    Thank you, can you please explain? I don't know what Bank and Clients is?
    • PeacefulWaters
    • By PeacefulWaters 12th Feb 18, 9:38 AM
    • 8,235 Posts
    • 10,494 Thanks
    PeacefulWaters
    • #9
    • 12th Feb 18, 9:38 AM
    • #9
    • 12th Feb 18, 9:38 AM
    But I'll need it in 6 months to buy a house. I don't understand how premium bonds work or the return...
    Originally posted by Lynn107
    You get no interest. But prizes instead. Typical return 50 a month on 50,000. Might get nothing. Might win 1m. Tax free.

    Don't be afraid to research them.
    • Lynn107
    • By Lynn107 12th Feb 18, 9:40 AM
    • 13 Posts
    • 1 Thanks
    Lynn107
    Someone has suggested I put it into a Santander current account, is this possible? Would this be more beneficial than a savings account?
    • PeacefulWaters
    • By PeacefulWaters 12th Feb 18, 9:41 AM
    • 8,235 Posts
    • 10,494 Thanks
    PeacefulWaters
    Thank you, can you please explain? I don't know what Bank and Clients is?
    Originally posted by Lynn107
    It's a bank. Not one I've heard of.

    http://www.bankandclients.com
    • Lynn107
    • By Lynn107 12th Feb 18, 9:42 AM
    • 13 Posts
    • 1 Thanks
    Lynn107
    Oh I see, thank you, in my situation though I really need a guaranteed return.
    • Lynn107
    • By Lynn107 12th Feb 18, 9:43 AM
    • 13 Posts
    • 1 Thanks
    Lynn107
    Thank you. I'd be worried about saving with an unfamiliar bank especially as I'll need the money to buy my home.
    • Keep pedalling
    • By Keep pedalling 12th Feb 18, 10:18 AM
    • 4,840 Posts
    • 5,385 Thanks
    Keep pedalling
    Thank you. I'd be worried about saving with an unfamiliar bank especially as I'll need the money to buy my home.
    Originally posted by Lynn107
    Put the bulk of it in NS&I income bond. It might take quite a bit longer than 6 months to find and complete on a new house, and NS&I gives you full protection for as long as you need to keep the money there. Although the interest rate is only 1%, unlike current accounts it is paid on the whole amount.
    • ValiantSon
    • By ValiantSon 12th Feb 18, 10:33 AM
    • 1,587 Posts
    • 1,329 Thanks
    ValiantSon
    But I'll need it in 6 months to buy a house. I don't understand how premium bonds work or the return...
    Originally posted by Lynn107
    You buy the bonds through NS&I. There is no guaranteed return, but you might win prizes. When you want the money again, you cash in the bonds.

    You'd almost certainly be better off putting your money in the best paying savings accounts, unless you feel particularly patriotic and wish to let the government use your money for the slim chance of winning prizes.
    Last edited by ValiantSon; 12-02-2018 at 10:44 AM.
    • ValiantSon
    • By ValiantSon 12th Feb 18, 10:42 AM
    • 1,587 Posts
    • 1,329 Thanks
    ValiantSon
    You get no interest. But prizes instead. Typical return 50 a month on 50,000. Might get nothing. Might win 1m. Tax free.

    Don't be afraid to research them.
    Originally posted by PeacefulWaters
    No it isn't. With average luck, someone with 50,000 (the maximum) in premium bonds could expect to win 250. Of course, the average requires that half of all people in this situation won't win that much! Meanwhile, 50,000 in a savings account paying 1.3% interest will earn 325.
    Last edited by ValiantSon; 12-02-2018 at 10:45 AM.
    • aroominyork
    • By aroominyork 12th Feb 18, 12:49 PM
    • 420 Posts
    • 122 Thanks
    aroominyork
    It's a bank. Not one I've heard of.

    http://www.bankandclients.com
    Originally posted by PeacefulWaters
    Correct. There was a hyperlink (albeit a faint one) in my original post. They used to be called Church House Trust (at one time I think owned by Virgin Money) and re-branded a year or two ago. They have very good rates (and in the past were even better) and offer very personalised service - eg sweet old ladies on the phone. I have used them for a while and found them very efficient.
    • Superscrooge
    • By Superscrooge 12th Feb 18, 12:57 PM
    • 1,065 Posts
    • 763 Thanks
    Superscrooge
    No it isn't. With average luck, someone with 50,000 (the maximum) in premium bonds could expect to win 250. Of course, the average requires that half of all people in this situation won't win that much! Meanwhile, 50,000 in a savings account paying 1.3% interest will earn 325.
    Originally posted by ValiantSon
    The premium bond calculator predicts 50,000 in premium bonds could expect to win around 50 a month / 500 a year
    https://www.moneysavingexpert.com/savings/premium-bonds-calculator/#result

    50,000 in a savings account paying 1.3% would earn 650 by my calculations?
    • ValiantSon
    • By ValiantSon 12th Feb 18, 1:23 PM
    • 1,587 Posts
    • 1,329 Thanks
    ValiantSon
    The premium bond calculator predicts 50,000 in premium bonds could expect to win around 50 a month / 500 a year
    https://www.moneysavingexpert.com/savings/premium-bonds-calculator/#result

    50,000 in a savings account paying 1.3% would earn 650 by my calculations?
    Originally posted by Superscrooge
    When I ran the calculator, over 6 months, it came out as 250.

    1.3% would be 650 for 12 months, but the OP was talking about a six month time frame, so that is the return I stated.
    • Superscrooge
    • By Superscrooge 12th Feb 18, 1:39 PM
    • 1,065 Posts
    • 763 Thanks
    Superscrooge
    ValiantSon - Sorry, I hadn't appreciated you were quoting 6 month returns. Your figures all make sense to me now!
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