What to do with house proceeds

[1Hazel1]

We are about to have around £320k transferred into our bank account from a house sale - we've gone into rented to break the chain, and we are hoping to buy somewhere else in the next year. What would you do with the money in the meantime? We thought to maybe max out our premium bond accounts and spread the rest between bank accounts so it will be protected by the £85k bank protection limit. Does that sound like a good plan? We wouldn't want to invest in shares or anything longer term like that as we need it to be available when we need it.

I think that's all you can do at the moment.

You might be able to get up to about 0.4% on instant access savings, but realistically you can't get much more without risking safety or access.

You might be able to increase the interest received slightly by going for a fixed product, but most won't allow you to withdraw the money before the end of the term. See if there's anything available that's meant to be fixed rate but allows limited withdrawals in case you unexpectedly find the perfect property very soon and decide to go for it.

Thank you 🙏 I posted this on the property board too and was advised that a NS&I savings account would protect all of the money, so I've opened one of those.

We are in the same situation and have put 100k of our house money in premium bonds. We've had £200 so far, way better than our savings account. That's over 2 full months and 2 with a smaller amount in. Plus it's good fun hoping we might win the big one!

There is a 6 month protection for temporary balances >£85k
www.fscs.org.uk/how-we-work/claims-process/temporary-high-balances/

You need it somewhere protected and won't get much interest on short term balances.
I'd shove the max into premium bonds and look at NS&I for for protection of you are going over 6 months.

Lurking as we are in same position.