1st October 2009, 08:55 AM
Question submitted via Daily Express newspaper
Where should I put proceeds from sale of my house?
I am hoping to sell my house and will go into a rented property until I can find a new house. As the amount from the sale of my house will be about £200,000, where can I put this large amount?
I already have three savings accounts each with nearly £50,000 in them. I will need the interest from the £200K to pay the rent.
Where can I put it so it will be safe and easily available if a house comes up for sale?
1st October 2009, 09:05 AM
You need to keep the money in a cash account somewhere where you can withdraw it fairly easily - in other words not an account that needs too much notice of withdrawal.
You can find details of best buy savings accounts here:
but steer away from the bonds and look for instant access or an account that only needs short notice - perhaps 60 days or less.
Since you have £200,000 to invest, splitting it into four would be the wisest to take advantage of the Financial Services Compensation Scheme's £50,000 guarantee. Put the money in four different accounts in banks or building societies where you don't already have savings to get full protection.
I don't believe that you will need to call on this guarantee, but better safe than sorry, particularly as this is likely to be a short term investment and the extra nuisance of opening several accounts and/or losing a few pounds extra interest is not likely to be significant in exchange for being able to sleep soundly at night.