What to do with equity whilst between houses?

[Nightfall1983]

Was wondering if anyone had any advise. Today we (finally) completed on the sale of our house. We have moved to a different county for work and have been living with my parents for the last 3 months. We hope to decide on and make an offer on a house in the next month and then there will be another 3 months give or take before we complete so I'm wondering what is best to do with the equity from my sale. Should I just leave it in my current account?

It's £75k. Our current account generally runs between £1 - 4k every month and it's a joint account so no worries about the financial compensation scheme but practically no interest either.

I'm not prepared to risk the money at all, zero risk. I will need to access it on reasonably short notice - 2 weeks maybe. What's best do you think? Thanks!!

If it's only in there for a few months I'd suggest opening an instant access savings account with either your usual bank or a building society - one you can run online perhaps - transferring your 'house money' and enjoying what might only be a small amount of interest but which is better than nothing at all. You'd also be less likely to fritter away your house money if it's kept separate. Why not check out a few options on a comparison site?

Have you looked at MSE website, they might have comparisons/lists of instant access interest bearing accounts or one of the comparison sites.

DBro is in tge same situation byt slightly longer term, will ask what he did?

interest rates are terrible now but you can earn a bit on it. It is a pain though as it means current accounts and setting up online banking. As they are current accounts, they are all instant access.

step 1)

both of you book an appointment at your nearest TSB and ask to open 3 enhance current accounts. Stick 5k in each. Set up standing orders so £1000 moves round the accounts, i.e. that is paid in each month. This will earn 3%.

in addition, you each open a TSB classic plus, connect that to the 'chain' of standing orders and put £2k in it. There it will earn 5%.

So that is £34k housed.

step 2) depends how much trouble you want to go to. You can have a Nationwide flexdirect account each at 5% - but only 2.5k each. Or you can open a Santander 123 account each which pays 3% on 20k. That also needs a standing order and 2 direct debits.

I think that is all the money safely housed and earning as much interest as is currently possible. You will net a couple of hundred quid from this in 3 months.

if it is too much hassle, leave it with your bank as it is under the £85k banking guarantee limit and will be safe.

when it comes to the time to spend it, book an appointment for a CHAPS transfer.

all other 'instant access' accounts pay 1% or so and it will be just as much effort.

Be careful on opening extra current accounts which have credit checks if you need a mortgage to finance your next house - the new rules are bedding in and you don't want to scupper your chances.

Is there time for a premium bond flutter?