Active discussions

Meet the Other Phone. Only the apps you allow.

Meet the Other Phone.
Only the apps you allow.

Buy now

Please or to access all these features

Talk
Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Original poster

Where would you put £450,000 short term?

30 replies

mrsdavidbowie · 31/07/2015 18:07

In the next year or so my ex and I will be selling family home and i will have @ £450,000 to put away for a new house.
I will not be buying for about 2 years after that as I will be relocating..plan to rent.

What sort of account/ investment should I be looking at..I don't want it locked away for 3 years as I will need it when I buy.

OP posts:
AliceAlice1979 · 31/07/2015 18:09

I'll look after it for you

Original poster
mrsdavidbowie · 31/07/2015 18:11

We could have a hell of a party Alice

OP posts:
purplemurple1 · 31/07/2015 18:16

How much risk if any are you willing to take with it? Would you consider funds, share, a btl?

If you plan to bank it make sure it is split between banks (not just accounts) so it is protected if the bank goes bust.

PerspicaciaTick · 31/07/2015 18:19

In my bra, it is surprisingly capacious and there is definitely space beside my mobile and car keys.

SecretRed · 31/07/2015 18:22

Lots of banks will temporarily ensure balances over £85,000 are kept safe. Regulation has changed slightly.

Preminstreltension · 31/07/2015 18:22

Just agreeing with purple. Separate unrelated bank accounts (ie not Santander and Cahoot which belongs to Santander) with no more than 85k in each.

FadedRed · 31/07/2015 18:26

Where would you put £450,000 short term?
On the favourite in the 2.30 at Kempton Park? Grin

Preminstreltension · 31/07/2015 18:28

Not sure what you mean secret. The bank can try to keep money safe but if they go down they cannot help - hence the FSCS which is independent. Have I missed your point?

ItsAll · 31/07/2015 18:32

Grin Perspicacia

Rockchick1984 · 31/07/2015 19:36

I believe the FSCS will only cover £75k from January so you would need less than that in each company.

Personally I'd be looking at 1 year or 2 year fixed rate bonds, plus one instant access saver so you can get at some of the money if you need it.

or spend it all on shoes

Original poster
mrsdavidbowie · 31/07/2015 19:36

I don't want it invested long term as I have ex's pension pot invested.
Split between banks sounds a realistic idea

OP posts:
ladybird69 · 31/07/2015 19:43

Is there any chance that you could keep the house and rent it out? You'd get rental income plus property prices are on the rise. Just a thought.

YeOldeTrout · 31/07/2015 19:45

Split between 6 banks.

IsItMeOr · 31/07/2015 19:50

Info on FSCS limits.

It's per person, so if you have a joint account, cover will be double.

Justyouwaitandsee · 31/07/2015 19:53

£50k in tax free premium bonds?

Alanna1 · 31/07/2015 19:54

I think you should go see a financial adviser! Me personally, I don't call 2 years "short term". London prices seem to go up about 10% a year! I don't know where you are or where your family are, but I'd personally buy a place in London with a mortgage too (as 450k itself doesnt go that far) which I could live in if necessary which I would then rent out. Short-term, which I'd call 3-6months, I'd probably use national savings bonds.

Original poster
mrsdavidbowie · 31/07/2015 19:57

I do have a financial advisor but have just been thinking about this. I'm in London but will be relocating in 3 years.
Definitely have to sell the house, and certainly don't want a mortgage.

OP posts:
purplemurple1 · 31/07/2015 20:40

Id prob get a btl in the area you intend to relocate to so it stays relative to the local market. If anything is left over id get a fixed rate 2 yr bond.

Zillie77 · 01/08/2015 00:26

I would keep it in a Vanguard (or other similar very low fee) money market fund. Easy access, low volatility, interest-bearing account. We have all of our savings with Vanguard.

specialsubject · 01/08/2015 12:45

I'd ignore the yank spammer if I were you...

your immediate task is to get it safely split. That means no more than £75k in each banking licence (or £150k if a joint account). Not each bank, some share banking licences.

here's a list:
www.moneysupermarket.com/c/news/who-owns-who/0003118/

there are no savings bonds or savings accounts that outstrip inflation, and fixed rate bonds pay very low rates. You can set up lots of current accounts which will give you instant access and achieve on average 3%, but there won't be enough room for that much cash.

list:
www.moneysupermarket.com/current-accounts/high-interest-bank-accounts/

So park the rest in an instant access account at about 1.5% (subject to the banking licence issue). This also gives you flexibility if rates do go up.

the idea of a BTL in the relevant area is a possible but that brings the hassle and work of being a landlord, and you'll be doing well to return 3%.

if you want to invest (i.e take risk) that is different.

Original poster
mrsdavidbowie · 01/08/2015 12:54

Thank you so much for all your replies.
I definitely don't want to btl in area where I will relocate .

OP posts:
PennilynLott · 01/08/2015 13:26

Ns&i will cover the whole amount if you don't want to bother splitting between banks.

Zillie77 · 01/08/2015 14:17

If by yank spammer you are referring to me you are off base! I was suggesting a low-fee company where your money would be fairly secure. You could pick any company you like, I just mentioned the one I use as a convenience.

specialsubject · 01/08/2015 14:22

but it is American (correct me if I'm wrong) and the money is invested, i.e at risk. OP wants safe, which means savings, not investment, and is British as she refers to pounds.

she doesn't need to pay any fees and NO share investment is secure. Not even 'fairly' secure.

if you are just a person, apologies, but it really stank of spam due to being such incorrect advice for her situation.

NS &I pay terrible rates.

Zillie77 · 01/08/2015 14:29

Parking a large sum of money in a low-volatility, interest-bearing money market-type of fund is perfectly safe. Usually those accounts are similar to checking accounts on that one can write checks on them.

I was just trying to be helpful, specialsubject, not to spam anyone. In fact I am a medical doctor, I don't work in the financial field at all. You are the first poster on mumsnet to make me feel unwelcome.