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  • FIRST POST
    • Eels100
    • By Eels100 9th Aug 18, 8:27 PM
    • 981Posts
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    Eels100
    Safest place to put proceeds from house sale until we find another one to buy?
    • #1
    • 9th Aug 18, 8:27 PM
    Safest place to put proceeds from house sale until we find another one to buy? 9th Aug 18 at 8:27 PM
    That's it really. I'm going to pay off a couple of small debts then we will have around 50k which we need to keep safe and not too accessible until we find another house to buy.

    I've never had any savings to speak of so no idea where to start - I've got an ISA, but are there better options?

    Sorry, clueless! We're hoping to buy soon but there's not a lot to choose from here so it's going to be a case of waiting I think.
Page 1
    • Terry Towelling
    • By Terry Towelling 9th Aug 18, 9:12 PM
    • 755 Posts
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    Terry Towelling
    • #2
    • 9th Aug 18, 9:12 PM
    • #2
    • 9th Aug 18, 9:12 PM
    Do you want safety and/or the prospect of some interest and just how inaccessible do you mean - locked away for 1 year, 6 months, 4 months?

    As far as safety is concerned, take your pick, I guess, but if you want some interest and don't want a lot of faff getting it, there are some 1 year fixed-term accounts paying over 2% now and some 120-day notice accounts paying 1.66%. The banking and saving tab at the top of the screen will help you find the best.

    Some may advocate Premium Bonds. Any prizes are tax-free but your most likely return is going to be somewhere just under 1.25% pa with a 50K holding and that sort of level will probably only manifest itself with time - which you may not have if you find another house soon. The best easy-access savings accounts can offer more than this - as long as tax on interest isn't an issue.
    • Eels100
    • By Eels100 9th Aug 18, 9:22 PM
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    Eels100
    • #3
    • 9th Aug 18, 9:22 PM
    • #3
    • 9th Aug 18, 9:22 PM
    To be honest we'd move next month if the right house comes up so nothing too inaccessible I guess! Maybe the best thing to do is fill the ISA and put the rest in a separate saver account. Then lose the internet banking details!
    • aw77
    • By aw77 10th Aug 18, 6:59 AM
    • 11 Posts
    • 9 Thanks
    aw77
    • #4
    • 10th Aug 18, 6:59 AM
    • #4
    • 10th Aug 18, 6:59 AM
    Tesco savings account at 1.4% or so is a good bet. You can remove it anytime you like. You could also open up to two current accounts with Tesco (since they!!!8217;re credit checking you anyway), if you have six direct debits that can be set up and the interest is 3% on 3K in each. Your credit rating will be affected if you open lots of accounts with different providers in a short period of time.
    • Zanderman
    • By Zanderman 10th Aug 18, 8:37 AM
    • 1,876 Posts
    • 4,581 Thanks
    Zanderman
    • #5
    • 10th Aug 18, 8:37 AM
    • #5
    • 10th Aug 18, 8:37 AM
    To be honest we'd move next month if the right house comes up so nothing too inaccessible I guess! Maybe the best thing to do is fill the ISA and put the rest in a separate saver account. Then lose the internet banking details!
    Originally posted by Eels100
    Not sure why you want to 'fill the ISA'. The interest rates on most ISAs is pretty poor and that Tesco account at 1.4% would beat most hands-down (apart from fixed term ISAs but if you have one of those it would be useless for your purposes anyway as you need to get the money out again easily).

    Don't get misled by the ISA hype - much over-rated - that it is tax free. Yes it is. But so is interest on any account up to a total of 1000 interest per annum - and you'e not likely to get close to that with 50k over a short period.

    So, unless your ISA offers a really good interest rate, or unless you have other savings that would eat up your 1000 tax free interest allowance, forget the ISA, just chose an easy access savings account with a decent rate (several at 1.3 to 1.4%).
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