House sale proceeds - kids savings?

[fleaflyflo]

We have just sold our house and are renting until we find something to buy.

Sale proceeds mean we have approx £360k to save but would need easy access to.

High street rates are fairly pitiful so would like to know any other options.
One idea (although no idea if it is allowed) is if we put all/some of money into DCs Nationwide accounts?

Are you hiding the money in DC accounts seems odd your using they’re bank accounts

Max out your premium bonds.

£50,000 for each of you.

Easy to cash in.

Reasonable return with average luck. My return is currently standing at 2%.

If the money earns more than £100 in interest in a tax year in a child's account then they will get taxed on it anyway so you can't ' hide ' it away to avoid paying tax

Another vote for Premium Bonds here. They are not as good as they used to be but you have the fun factor!

It's the first £1000 of interest that's tax free now.

Not many people pay income tax on the interest on their savings now.

If a parent gifts money to the child's account and it's going to earn more than £100 interest then it is taxed on the full amount.

You can give a child any amount of money, or invest it for them, but if you’re a parent or step-parent there are special rules:

If you have given your child money that earns over £100 a year in interest, dividends, rent or any other investment income, the interest will be taxed as if it were yours. This doesn’t apply to Junior ISAs, Child Trust Funds and Children’s Bonds (previously known as Children’s Bonus Bonds).

I imagine £360k would earn a fair bit of interest too!

Thank you for your replies...really the kids account was just one thought. Premium Bonds sound like a good option

If you stick it into banks, make sure you don't have too much in per bank. I think the limit is 90k that's protected in case a bank goes bust.

But yes, I never thought I'd say this but premium bonds might actually make sense in this instance

I'd put 50k each into premium bonds too then the rest in an easy access account. You might get 1.3 % on it which is pitiful but about the highest around. I think house sale proceeds have extra protection. Savings are 85k but sale proceeds are different but do check.