Where to park proceeds of house sale until purchase of next property?

[MsFogi]

My father is about to sell his house and will get a bit north of £1mil. He's going to rent for a while whilst he decides where he wants to live. So I'm wondering where the best place to park the cash would be (I'm worried of course about lots of things: it being eaten by inflation but don't want it in something risky, someone conning him into transferring it to them, putting it in one financial institution that goes bust (but trying to avoid it becoming a complex web of different accounts that he may lose track of etc etc). I'd be interested in any wise MN insight! (He has used his entire premium bonds and ISA allowances).

I'd put it in an NS&I savings account. Every penny would be safe, not just the first £85k, and it would be easy to manage and get at when he has decided what he wants to do with it

@LubaLuca

I'd put it in an NS&I savings account. Every penny would be safe, not just the first £85k, and it would be easy to manage and get at when he has decided what he wants to do with it

Good advice. Direct saver pays 0.15%

Perhaps if he’s got that much he could give some of it to you ...

Yes, I don't think there's any other option other than to put it in NS&I for safety and simplicity.

He could put some (half? hedge his bets) in a low risk investment product and look at taking a mortgage if market conditions are unfavourable when he comes to buy again, but that would depend on him having an income to support a mortgage, which I suspect not. Although he could use his other 'cash' savings to fund the purchase?

Is he likely to buy another expensive property? How old is he and what's his health like?

If he's an older person who's considering downsizing, realistically he's probably got more money than he will need or spend in his lifetime and perhaps it's time for him to get proper paid advice about inheritence tax planning and even starting to offloading his assets to those who are likely to inherit?

Especially if you're unlikely to need the money in the short term so if he did 'give some of it to you' like a PP suggests, then you've got over the worry of needing to cash in investments at the wrong time?

Thanks for all the advice. He's in good health and will downsize. I had just assumed he would use what is left to live comfortably on for the rest of his life (I don't really know what his pension etc is like but I suppose now is the time to start looking at this with him).

House sale proceeds are totally protected even if over £85k

House sale proceeds are totally protected even if over £85k

Actually, there is a protection limit of £1m for temporary high balances, for a period of 6 months. But at least it’s (mostly) safe until you decide what to do.

www.fscs.org.uk/how-we-work/claims-process/temporary-high-balances/

He might find investing in a 2nd house and renting it out will get him a better return, than a pension.

@Bollindger

He might find investing in a 2nd house and renting it out will get him a better return, than a pension.

OMG no way - he can barely manage running his paperwork for the current house, I would end up trying to run this in addition to my day job!! We are going to need to find some seriously passive low-risk investments!