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Safe short term savings

(5 Posts)
Mendi Sun 30-Jun-13 05:46:43

If you had to put the proceeds of sale of your home somewhere 'safe' for a bit, what would you do? I am selling and going into rented, hopefully only for 6-9 months. I need to put the equity from the sale into some sort of savings account - will need to be two accounts at least as the amount will be more than £85k.

Has anyone done similar? Should I just open two savings accounts or what?

caroldecker Sun 30-Jun-13 16:44:03

for 6-9 months just 2 savings accounts - make sure the banks don't share the same guarantee listing though. check here

Mendi Sun 30-Jun-13 17:10:38

Thanks caroldecker

I wondered if I should use up my ISA allowance with some of it (no ISA this year yet)?

caroldecker Sun 30-Jun-13 18:12:55

can use ISA, but if you are cashing in after 6 months then the tax saving is not v useful over that period and hassle of opening another account

somebloke123 Mon 01-Jul-13 11:50:58

Some banks and building societies have introductory interest rates that operate just for the first year (e.g. Halifax Online Saver 1.35% for balances over 55000), with interest paid monthly after which they revert to the normal rubbish rate. Still not enough to keep pace with inflation but at least it slows the rate at which your money depreciates.

I think Santander 123 (from memory) do a 3% rate for balances between 3K and 20K but I think you need to put in £500 per month to qualify.

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