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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 2
    • Lynn107
    • By Lynn107 12th Feb 18, 1:55 PM
    • 13 Posts
    • 1 Thanks
    Lynn107
    Savings Account paying 1.3% ?
    I wanted to reply to Valiant Son but I haven't yet got to grips with this website and I'm a bit lost when it comes to posting quotes! As I am a complete novice I think I'd be more comfortable putting it into a savings account/s, the replies suggest I can expect a return of between 0.5 to 1.3%. Which bank would the 1.3% be with? Are there any negatives? Thanks.
    • Lynn107
    • By Lynn107 12th Feb 18, 2:01 PM
    • 13 Posts
    • 1 Thanks
    Lynn107
    Bank of Clients
    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.
    Originally posted by aroominyork
    Sounds good, is this bank covered by the FSCS and what is the interest rate please? I do like the sound of the customer service as I need all the help I can get! Thats why I've been with First Direct since it started.
    • sjp999
    • By sjp999 12th Feb 18, 2:08 PM
    • 49 Posts
    • 37 Thanks
    sjp999
    FSCS cover = Yes

    1.5% variable for six months.
    • ValiantSon
    • By ValiantSon 12th Feb 18, 2:42 PM
    • 1,846 Posts
    • 1,713 Thanks
    ValiantSon
    I wanted to reply to Valiant Son but I haven't yet got to grips with this website and I'm a bit lost when it comes to posting quotes! As I am a complete novice I think I'd be more comfortable putting it into a savings account/s, the replies suggest I can expect a return of between 0.5 to 1.3%. Which bank would the 1.3% be with? Are there any negatives? Thanks.
    Originally posted by Lynn107
    You can get 1.3% with Tesco Bank or 1.35% with ICICI Bank.

    If it ends up being in longer than expected, be aware that the ICICI rate is only until 31st January 2019. Other than that there are no negatives I can think of.

    If you are considering the Bank and Clients' six month notice account then it's worth noting that you can get a better rate from Secure Trust Bank who are offering 1.66% on a 180 day notice account , or 1.56% on a 120 day notice account.
    Last edited by ValiantSon; 12-02-2018 at 2:51 PM.
    • aroominyork
    • By aroominyork 12th Feb 18, 2:48 PM
    • 450 Posts
    • 133 Thanks
    aroominyork
    FSCS cover = Yes

    1.5% variable for six months.
    Originally posted by sjp999
    Yes, that's correct for the curiously-named Bank and Clients. And if the base rate rises soon so might their 1.5% variable.
    • Lynn107
    • By Lynn107 13th Feb 18, 2:23 PM
    • 13 Posts
    • 1 Thanks
    Lynn107
    Opting for Savings accounts
    You can get 1.3% with Tesco Bank or 1.35% with ICICI Bank.

    If it ends up being in longer than expected, be aware that the ICICI rate is only until 31st January 2019. Other than that there are no negatives I can think of.

    If you are considering the Bank and Clients' six month notice account then it's worth noting that you can get a better rate from Secure Trust Bank who are offering 1.66% on a 180 day notice account , or 1.56% on a 120 day notice account.
    Originally posted by ValiantSon
    After all the advice, very much appreciated, I am leaning towards spreading my money in Savings accounts as I have more of an understanding of how they work plus I'm not sure of how long it will take for me to find and buy a house so notice periods might complicate.
    Also I am concerned about using unknowns when the money will ultimately be used to buy my home. I had a look at the Tesco account but it pays interest annually only with a bonus after one year so this doesn't seem to work if I may need the money in about 6 months or so. The same with ICICI. The Ford Money account seems to be ok as it pays interest monthly and if I find a house sooner than expected it wouldn't be a problem. Of course I now need to find another bank offering a similar deal. Does anyone have any suggestions as I've only been able to find ones that pay interest annually?
    • ColdIron
    • By ColdIron 13th Feb 18, 2:28 PM
    • 4,148 Posts
    • 5,230 Thanks
    ColdIron
    I had a look at the Tesco account but it pays interest annually only with a bonus after one year so this doesn't seem to work if I may need the money in about 6 months or so
    Originally posted by Lynn107
    If you close the account after 6 months or whatever they will pay all interest, standard and bonus, accrued to date. Most easy access accounts work like this
    • Lynn107
    • By Lynn107 13th Feb 18, 3:09 PM
    • 13 Posts
    • 1 Thanks
    Lynn107
    If you close the account after 6 months or whatever they will pay all interest, standard and bonus, accrued to date. Most easy access accounts work like this
    Originally posted by ColdIron
    ColdIron- Thank you. I'm just a bit unsure of the interest rate as the annual bonus seems to be included within the rate and I will most likely only be using the account for about 6 months until I find and buy a house.
    • ColdIron
    • By ColdIron 13th Feb 18, 3:36 PM
    • 4,148 Posts
    • 5,230 Thanks
    ColdIron
    I'm just a bit unsure of the interest rate as the annual bonus seems to be included within the rate and I will most likely only be using the account for about 6 months until I find and buy a house.
    Originally posted by Lynn107
    They will pay you interest at the standard rate (0.55%) around the end of March as this is the date they pay all standard rate interest, just leave this in your account. If you close the account in August or whenever they will pay you whatever interest you've earned since March at the standard rate and all the interest at the bonus rate (0.75%) since you opened the account. You don't need to wait for anything, you will get every penny owed when you close the account
    • Lynn107
    • By Lynn107 13th Feb 18, 4:46 PM
    • 13 Posts
    • 1 Thanks
    Lynn107
    They will pay you interest at the standard rate (0.55%) around the end of March as this is the date they pay all standard rate interest, just leave this in your account. If you close the account in August or whenever they will pay you whatever interest you've earned since March at the standard rate and all the interest at the bonus rate (0.75%) since you opened the account. You don't need to wait for anything, you will get every penny owed when you close the account
    Originally posted by ColdIron
    Coldron- Thanks again. I've applied for the Tesco and Ford Money Savings accounts. It may take longer than usual apparently to verify my ID as I moved into temp rented last week until I find a house to buy.
    • ValiantSon
    • By ValiantSon 13th Feb 18, 4:48 PM
    • 1,846 Posts
    • 1,713 Thanks
    ValiantSon
    After all the advice, very much appreciated, I am leaning towards spreading my money in Savings accounts as I have more of an understanding of how they work plus I'm not sure of how long it will take for me to find and buy a house so notice periods might complicate.
    Also I am concerned about using unknowns when the money will ultimately be used to buy my home. I had a look at the Tesco account but it pays interest annually only with a bonus after one year so this doesn't seem to work if I may need the money in about 6 months or so. The same with ICICI. The Ford Money account seems to be ok as it pays interest monthly and if I find a house sooner than expected it wouldn't be a problem. Of course I now need to find another bank offering a similar deal. Does anyone have any suggestions as I've only been able to find ones that pay interest annually?
    Originally posted by Lynn107
    Don't worry about annual interest. If you close your account the interest will still be paid - pro rata.
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