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  • FIRST POST
    • Bobby Applejuice
    • By Bobby Applejuice 12th Feb 18, 12:18 PM
    • 11Posts
    • 2Thanks
    Bobby Applejuice
    Urgent quick fix advice needed for placing £150k
    • #1
    • 12th Feb 18, 12:18 PM
    Urgent quick fix advice needed for placing £150k 12th Feb 18 at 12:18 PM
    I have sold my house and due to an unforeseen circumstance i now cannot place the money into another property but need to hold it until i know what to do with it. My existing bank account currently has £70k in due to being made redundant (yeah it may seem i'm rolling in cash but i'm actually out of work and living at my parents

    So i need to inform the solicitor of where to put my £150k TODAY but obviously cannot place in my one existing back account. Where would be the safest place to put it in the short term (and quickly)?

    Thanks
Page 1
    • Superscrooge
    • By Superscrooge 12th Feb 18, 12:29 PM
    • 1,071 Posts
    • 770 Thanks
    Superscrooge
    • #2
    • 12th Feb 18, 12:29 PM
    • #2
    • 12th Feb 18, 12:29 PM
    From the money advice service link below

    Protection of temporarily high balances
    It is worth noting that depositors with temporary high balances might have protection under the FSCS for up to £1m, for up to six months from the date the account was first credited.

    Cover for temporary high balances is only available to individuals and not to companies.

    If, for example, you sell your home and as a result have an unusually high balance in your account, your balance might be protected if your bank goes bust, even it is higher than the £85,000 limit.

    https://www.moneyadviceservice.org.uk/en/articles/compensation-if-your-bank-or-building-society-goes-bust
    Last edited by Superscrooge; 12-02-2018 at 12:32 PM.
    • Linton
    • By Linton 12th Feb 18, 12:35 PM
    • 9,333 Posts
    • 9,460 Thanks
    Linton
    • #3
    • 12th Feb 18, 12:35 PM
    • #3
    • 12th Feb 18, 12:35 PM
    In your bank account if it must be done now and then transfer to NS&I where you will get moderate interest with a 100% Government guarantee.
    • greendoor665
    • By greendoor665 12th Feb 18, 12:48 PM
    • 59 Posts
    • 123 Thanks
    greendoor665
    • #4
    • 12th Feb 18, 12:48 PM
    • #4
    • 12th Feb 18, 12:48 PM
    Why can you not place it in your existing account? The FSCS gives you protection for up to £1m in the case of a temporary high balance, which includes money from property sales.
    • Bobby Applejuice
    • By Bobby Applejuice 12th Feb 18, 1:08 PM
    • 11 Posts
    • 2 Thanks
    Bobby Applejuice
    • #5
    • 12th Feb 18, 1:08 PM
    • #5
    • 12th Feb 18, 1:08 PM
    I'm with Yorkshire Bank and i just called them. They said there is no limit to how much i can put in the account but it will only be covered up to £85k. I mentioned the FSCS protection and they said they have no information regarding that.
    • eskbanker
    • By eskbanker 12th Feb 18, 1:16 PM
    • 6,882 Posts
    • 7,159 Thanks
    eskbanker
    • #6
    • 12th Feb 18, 1:16 PM
    • #6
    • 12th Feb 18, 1:16 PM
    I'm with Yorkshire Bank and i just called them. They said there is no limit to how much i can put in the account but it will only be covered up to £85k. I mentioned the FSCS protection and they said they have no information regarding that.
    Originally posted by Bobby Applejuice
    They should know FSCS rules but it doesn't really matter if they don't because the FSCS protection only kicks in if YB went bust (i.e. YB wouldn't be around to 'help' anyway!).

    Check out the facts at https://www.fscs.org.uk/what-we-cover/questions-and-answers/qas-about-temporary-high-balances/
    • CatLady13
    • By CatLady13 12th Feb 18, 1:19 PM
    • 46 Posts
    • 42 Thanks
    CatLady13
    • #7
    • 12th Feb 18, 1:19 PM
    • #7
    • 12th Feb 18, 1:19 PM
    Others have already mentioned the six months temporary protection up to £1million. Have it transferred to your bank then think about transferring it into savings or all of it into NS&I (they have several types of accounts to choose from).
    • bowlhead99
    • By bowlhead99 12th Feb 18, 1:21 PM
    • 7,706 Posts
    • 14,102 Thanks
    bowlhead99
    • #8
    • 12th Feb 18, 1:21 PM
    • #8
    • 12th Feb 18, 1:21 PM
    I'm with Yorkshire Bank and i just called them. They said there is no limit to how much i can put in the account but it will only be covered up to £85k. I mentioned the FSCS protection and they said they have no information regarding that.
    Originally posted by Bobby Applejuice
    The people on the customer services team will only have the standard responses. If YB collapsed it is not them that would be payng you out anyway.You only need to call on the FSCS protection if Yorkshire actually go bust and can't pay you back. At that point you can contact FSCS and give them the evidence (from your solicitor completion statement and YB bank statement) that the money came from a house sale and is covered under temporary high balances rules as it is not a normal everyday bit of income for you - the circumstances and examples for which you can read on the FSCS's own website.

    So:
    1)
    Get the money from your selling solicitor and dump it into any account that you have which already exists. It is covered for six months.

    2)
    Meanwhile get the ball rolling on opening a 'monthly income bond' account with NS&I (nsandi.com), it pays 1% AER and is directly backed by UK treasury so doesn't need FSCS protection from the financial services industry scheme, and does not have a long notice period to get the money back.

    3) Then take your time to figure out the best combination of high paying accounts from other providers to maximise your interest over the likely timescale before you want to spend some or all of the money.
    • Eco Miser
    • By Eco Miser 12th Feb 18, 1:21 PM
    • 3,444 Posts
    • 3,234 Thanks
    Eco Miser
    • #9
    • 12th Feb 18, 1:21 PM
    • #9
    • 12th Feb 18, 1:21 PM
    I'm with Yorkshire Bank and i just called them. They said there is no limit to how much i can put in the account but it will only be covered up to £85k. I mentioned the FSCS protection and they said they have no information regarding that.
    Originally posted by Bobby Applejuice
    That's the person answering the phone. Yorkshire Bank regularly sends me pieces of paper detailing their protection by the FSCS. This includes the £million temporary high balance protection.

    Anyway, Yorkshire Bank isn't going to go bust on the day between you receiving the money from your solicitor and paying into an NS&I account.
    Eco Miser
    Saving money for well over half a century
    • Bobby Applejuice
    • By Bobby Applejuice 12th Feb 18, 1:38 PM
    • 11 Posts
    • 2 Thanks
    Bobby Applejuice
    Thanks guys. This makes sense now. Although looking at NS&I and having zero knowledge on bonds, i'm intrigued at the thought of maybe splitting the money across monthly income bonds and mane premium bonds (is this worth it?) seeing as i have easy access to it all.
    • xylophone
    • By xylophone 12th Feb 18, 2:40 PM
    • 25,190 Posts
    • 14,837 Thanks
    xylophone
    zero knowledge on bonds,
    They might be called "bonds" but in fact they are deposit accounts.

    If you want instant access you can deposit the whole of your house sale cash and your redundancy money into Income Bonds, receive monthly interest (1%) paid into your bank account and access the capital within a couple of days if you need to.

    https://www.nsandi.com/income-bonds

    You could buy Premium Bonds if you wish.

    Other savings accounts here

    http://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html
    • Bobby Applejuice
    • By Bobby Applejuice 12th Feb 18, 3:24 PM
    • 11 Posts
    • 2 Thanks
    Bobby Applejuice
    Thanks xylophone. And thanks everyone.
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