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I’d check something like money supermarket etc for banks cash savings if it is short term, too risky otherwise - but you won’t get 2% interest. Careful of scams offering high interest - if it’s too good to be true, it probably is.
I am after some advice.
My father died in April and I am selling his house under probate. It is sold stc, the buyers (ftb living with Mum and Dad, probably no other way to save a 15% deposit!) have had their mortgage approved and solicitors are preparing contracts.
There is no chain either side and it should be as straight forward as these things ever are.
I am currently renting and need to give one months notice.
I have had an offer accepted on another property, and once my Dad's property sells I will be a cash buyer. My seller has had an offer accepted themselves. I am not sure of the next person's situation but the upward chain is not yet complete.
So it is likely that I will end up with about £400K in the bank for at least a couple of months maybe longer.
What is the best absolutely risk free place to deposit this? Even 2% pa paid monthly would go a long way to paying my survey fees.
I’d check something like money supermarket etc for banks cash savings if it is short term, too risky otherwise - but you won’t get 2% interest. Careful of scams offering high interest - if it’s too good to be true, it probably is.
Short term investment and absolutely risk free don't go together!Originally Posted by Kevin
If cash in banks it will need to go in a few different accounts for £85K max protection (check banking groups though), NS&I savings & Premium Bonds are good too.
Try this useful guide for 'safe savings'
https://www.moneysavingexpert.com/savings/safe-savings/
Last edited by vulcangascompany; 21st July 2020 at 00:14.
One can but try
Thanks for that link, I wasn't aware of the 'significant life event' extension of protection of up to £1m for 6 months, which seems to cover precisely my circumstances
1.16% with NS&I looks a favourite unless I try my luck on the premium bonds, I suppose buying that amount of bonds should mean some regular small wins.
I would still get a couple of accounts with 80k each in them to allow for interest. 6 months can fly and anything can delay your onward purchase. From offer accepted to exchange it took us 13 months to sell our house. Make sure your 80k per account is with a different fscs licence and not 80k with NatWest then another 80k with rbs etc.
NS&I is probably the safest and least hassle. I think there is a limit on the amount you can hold in premium bonds.
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£50k
if only investing for a couple of months bare in mind if you buy premium bonds today it will be Septembers draw the first time your numbers are entered.
£80k with NatWest and £80k with RBS would be ok. You could add in the same from Coutts whilst you are about it.
Whilst part of the same banking group they do not share a single banking licence.
You are actually covered upto £1,000,000 for six months after what is termed a 'life event' (and this would be one).
Just don't, downsides are not worth the upsides. You are risking a carefree future without mortage for a few dimes... just don't.
I get the sentiment and agree with you regarding risk. but from what I can see putting the whole lot into NS&I (Backed by the treasury) is actually safer than doing nothing and leaving it in the bank especially if the time slips past the 6 month 'life event' protection.
I would prefer to have it in NS&I (either a single saving account or with up to 50K in premium bonds as a bit of fun/hope you might have a big win) than leave in the bank and in the unlikely event of the bank going under, having to go through whatever process there might be to claim as a 'life event' - I know I would be thinking 'am I going to see my money?' - but I'm a pessimist, so that's probably just me!
I realise that.👍
I was just pointing out that people need to look beyond an assumption that companies in the same group are always covered by a single licence.
This is what we have done as we sold last year and are still awaiting the new build. Not exciting but practical.
Steve.
Yes I think NS&I is best. Totally safe and secure. You could get more by splitting it across bank accounts but can you be bothered for a couple of months? I couldn't. You might scrape an extra £500-£600 over the two months by faffing around - pre tax.
NS&I Income Bond 1.16% easy access
Think you wouldnt be entered into the prize draw untill month 2 with aNS&I account. So depending on how long you plan to leave it in willdetermine whether there is any benefit. If i was going to move that kind of money, id just get a marcus account by goldman sachs for the rather low but higher than many other savings accounts. Think i was tied in at 1.29% and it may have just been lowered. Worth a look.
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+1 fully covered to a mil per person or thereabouts. No hassle easy to set up etc etc can use 8 debit card payments of 49999 to get it in there quick or even other methods whatever suits.
B
Last edited by Brian; 21st July 2020 at 21:16.
re premium bonds- that’s what I said earlier in thread...and Marcus are not opening any new accounts at the moment.
Last edited by craig1912; 22nd July 2020 at 07:25.
It seems that Marcus by Goldman Sachs are not accepting new accounts at the moment, and even if they were the interest rate is less than NS&I
NS&I seems to be the way to go. Though the money isn't going to land for a few weeks yet, time for Rishi Sunak to come up with some great scheme! (I am already very grateful for the stamp duty holiday)
Thanks to everyone who took the time to post, it is very much appreciated.
Last edited by Kevin; 22nd July 2020 at 01:23.
With 100k in a Marcus account and 50k in premium bonds last year the premium bonds outperformed the Marcus account for me despite the 2:1 difference in investment. An element of luck to it but nevertheless .It seems that Marcus by Goldman Sachs are not accepting new accounts at the moment, and even if they were the interest rate is less than NS&I
NS&I seems to be the way to go. Though the money isn't going to land for a few weeks yet, time for Rishi Sunak to come up with some great scheme! (I am already very grateful for the stamp duty holiday)
Thanks to everyone who took the time to post, it is very much appreciated.
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