Bank account help

HollyPollyMolly · 2025-02-27T13:37:49+00:00

I'm sorry if this isn't in the right area but I'm hoping someone might have some guidance. My house sale is due to complete in a couple of months and I'm not using the money immediately. I need to pop it into an account but ideally, one with a good interest rate. I've been looking online and many of them are savings accounts but have a minimum monthly payment that I have to put in. Are there accounts where I can put the money in with a decent interest rate, but that I can access because I will need to dip into it as I work on other projects?

NoBinturongsHereMate · 27/02/2025 14:13

Look for 'easy access savings account'. Not a 'regular saver'. Money saving expert has best buy tables.

InveterateWineDrinker · 27/02/2025 18:28

How much are you expecting from the sale? The Financial Services Compensation Scheme only guarantees the first £85,000 per banking licence. Sale proceeds from property are covered up to £1m for six months, but only if it was your main residence - second homes and investment property (development projects, BTLs etc) are NOT covered. If this is a consideration then you'll need to spread the money around a bit.

Hoppinggreen · 27/02/2025 18:30

I Have a Monzo account and my savings pot gets around 3.5% I think
I can move money in and out of it instantly with no penalties

LIZS · 27/02/2025 18:37

How long before you need it? Many isas allow three withdrawals a year. Or you could put it in a fixed term bond.

workstealssleep · 01/03/2025 20:04

Who do you bank with? If you go online and send a message they should help you, or phone them up. You can explore accounts open to you too. I recently opened a Flex Saver account with Nationwide. It took seconds and is 3%.

B1indEye · 01/03/2025 21:32

workstealssleep · 01/03/2025 20:04

Who do you bank with? If you go online and send a message they should help you, or phone them up. You can explore accounts open to you too. I recently opened a Flex Saver account with Nationwide. It took seconds and is 3%.

Edited

You can do a lot better than 3% at the moment, plenty of accounts over 4% which could be significant if the OP is getting a large sum

Rictasmorticia · 01/03/2025 21:42

Remember that only £86000 is guaranteed, so if it is more than that you may want to split it. FORD money have an instant access account that pays 4.35 . They are good people to bank with and you just nominate a bank account so getting money out is easy.

I also recommend Coventry, Leeds, Skipton and Yorkshire building societies.

KnickerlessParsons · 01/03/2025 23:33

How about buying premium bonds?

rainbowunicorn · 02/03/2025 01:16

Rictasmorticia · 01/03/2025 21:42

Remember that only £86000 is guaranteed, so if it is more than that you may want to split it. FORD money have an instant access account that pays 4.35 . They are good people to bank with and you just nominate a bank account so getting money out is easy.

I also recommend Coventry, Leeds, Skipton and Yorkshire building societies.

Not if it is proceeds from the sale of OPs main residence. 1 million is guaranteed for 6 months under the temporary high balances scheme. Also applies to other payouts such as inheritance, divorce etc.

EveryDayisFriday · 02/03/2025 07:25

Post office has an online saver at 4.40%. Be careful that your interest earned doesn't exceed your personal savings allowance otherwise you'll have to pay tax.

Brahumbug · 02/03/2025 07:53

Marcus by Goldman Sachs pays 4.3%, excellent bank. If you don't have an ISA already this year, then Trading 212 cash ISA pays 4.65 with unlimited withdrawals, interest paid daily with no tax liability.

HappyHolidai · 02/03/2025 07:56

EveryDayisFriday · 02/03/2025 07:25

Post office has an online saver at 4.40%. Be careful that your interest earned doesn't exceed your personal savings allowance otherwise you'll have to pay tax.

But more interest less tax is still more money than less interest. If the first is over the savings allowance and the second isn't.

marshmallowfinder · 02/03/2025 08:14

KnickerlessParsons · 01/03/2025 23:33

How about buying premium bonds?

50k is the max investment, so not the whole answer.

B1indEye · 02/03/2025 09:42

EveryDayisFriday · 02/03/2025 07:25

Post office has an online saver at 4.40%. Be careful that your interest earned doesn't exceed your personal savings allowance otherwise you'll have to pay tax.

You only pay tax on the amount over the limit so youll always be better off with the highest interest rate

Although I maybe have a vague memory of interest pushing you into the next tax batcket

EveryDayisFriday · 02/03/2025 09:45

I just thought that tax payable was something to bear in mind, especially on a large sum. When we sold our house, the interest rates were on the floor so we had no chance of meeting the savings allowance even on a deposit of £200k.

rainbowunicorn · 02/03/2025 20:24

EveryDayisFriday · 02/03/2025 09:45

I just thought that tax payable was something to bear in mind, especially on a large sum. When we sold our house, the interest rates were on the floor so we had no chance of meeting the savings allowance even on a deposit of £200k.

They aren't paying tax on the capital though, only on any interest earned over tbe threshold. They will still be better off because they will get to keep any interest after tax. It's a no brainer really.

Original poster

HollyPollyMolly · 02/03/2025 20:31

Apologies, I posted and disappeared!

I'm expecting c£150,000. I'm visiting my parents for a few months then intend to look for a 'do-er up-er' so will need to access the funds for deposit and then intermittently to cover the cost of works.

I'll have a look into the recommendations, thanks!

OP posts:

Lincslady53 · 02/03/2025 23:38

Assuming you don't have any tax free savings, I would pit £20k into an isa and £50k into premium bonds to get the max tax free return. Same for your partner. Then split the rest into different savings accounts, good comparison sites, MSE, Boring Money. £85,000 Max to each bank, be careful as some banks with different names are owned by the same parent bank. Thus gives you max protection. If you are looking to use it in tge shirt term, stick to cash not SnS investments. Proceeds from a house need to be in a safe savings where the value can't drop.

rainbowunicorn · 03/03/2025 01:27

Lincslady53 · 02/03/2025 23:38

Assuming you don't have any tax free savings, I would pit £20k into an isa and £50k into premium bonds to get the max tax free return. Same for your partner. Then split the rest into different savings accounts, good comparison sites, MSE, Boring Money. £85,000 Max to each bank, be careful as some banks with different names are owned by the same parent bank. Thus gives you max protection. If you are looking to use it in tge shirt term, stick to cash not SnS investments. Proceeds from a house need to be in a safe savings where the value can't drop.

Well the value probably will drop if she puts 50k in premium bonds, there are much better ways to guarantee a return than premium bonds. The rates are being dropped in them again next month. She could literally never win a penny even with full holdings. She dosent need to stick to 85k if it is proceeds from the sale of her home. She will be covered for 6 months under the temporary high balances scheme.

Bjorkdidit · 03/03/2025 03:58

The chances of not winning a penny with £50k of PBs so small it's not worth worrying about. Plus winnings are tax free so worth quite a bit more once the OP has used her savings and ISA allowances

So to save having to move the money after 6 months, I would put £85k in the best paying instant access account, £20k in a cash ISA with a separate bank and the rest in PBs (although don't do this until late in the month to minimise the period when the money is not earning interest or eligible for the PB draw).