Short term savings ideas for £550K

[solwisesteve]

We've (myself and 'her indoors') decided it's time to start looking toward our retirement house - by that I mean our last house away from it all.... The plan is to retire in perhaps 3 years time but, in the mean time, I still have to go to work each day. So the plan is cash some investments in. Buy local, small house with that money and use that as a local base perhaps 4 days a week (works out at 4 months of the year adding up the days). House prices are going bonkers around us at the moment so the hope is the value of the second, smaller, house will perform at least as good as the investments I will have to cash in to purchase it. Once that's done then sell main house and move into smaller house whilst looking for the main retirement house. Purchase main house. Move there and then use the smaller local house as a crash pad for work or when visiting parents etc... One issue I have is how to juggle the stamp duty and tax issues. I suppose I'll have to speak to an 'expert' on that.

Anyway the question is what to do with the £550K from the main house sale whilst looking and purchasing the new primary home? This could be anything from 6 to 18 months but the money needs to be easy to get to with perhaps 1 months notice.

Suggestions please.

[noTAGlove]

No risk and one months notice. You’ve got few options but to stick it in a savings account/premium bonds and earn buttons in interest.

You’re going to have to spread it across 6 banks/building societies if you want the £85k FSCS guarantee.

[solwisesteve]

No risk and one months notice. You’ve got few options but to stick it in a savings account/premium bonds and earn buttons in interest.

You’re going to have to spread it across 6 banks/building societies if you want the £85k FSCS guarantee.

Premium bonds is probably a no-no because it's three months before it even gets entered in the draw! (well it used to be).

Yes I'd forgotten the 85K guarantee limit.

[David_D]

Premium bonds is probably a no-no because it's three months before it even gets entered in the draw! (well it used to be).

You’re right it’s not ‘immediate’ but it’s not anything like 3 month wait. Maybe 1st if month following. Also, of course, relevant to when you disinvest.

[solwisesteve]

You’re right it’s not ‘immediate’ but it’s not anything like 3 month wait. Maybe 1st if month following. Also, of course, relevant to when you disinvest.

Yes, you're right, now one month BUT maximum 50K (according to money saving expert).

[David_D]

Yes, you're right, now one month BUT maximum 50K (according to money saving expert).

Yes, £50k max but could do £50k each for a couple.

[dustybottoms]

Marcus savings by Goldman for some of it would be a sensible option. Instant access, 250k max, online and 1.5% fixed for 12 months

[solwisesteve]

Marcus savings by Goldman for some of it would be a sensible option. Instant access, 250k max, online and 1.5% fixed for 12 months

I think Sainsburys bank is 1.45% with a 500K limit.

tbh I was hoping for better but maybe I'm in dream land as far as that's concerned :-(

[awright101]

One savings bank have good rates for a one year bond

[Passenger]

I think Sainsburys bank is 1.45% with a 500K limit.

tbh I was hoping for better but maybe I'm in dream land as far as that's concerned :-(

I'm afraid savers were thrown under the bus a decade ago to save the 'system', and nowt much has really changed since then. Personally I'd choose anywhere but Sachs but that's more because of that organisations historical unethical behaviour than a criticism of their Marcus account.

Best of luck with your plan.

[JonRA]

I'm pretty sure that you can't offset improvements against CGT - just necessary maintenance. Or at least you don't have free rein.

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