What to do with house sale proceeds when going into a rental?

[Hopepark]

Hello

We have just sold our house and have moved into a rental property whilst we look for something suitable to buy.

What is the best thing to do with the money that we now have in the bank from the sale proceeds?
We have £205k.
Obviously we want to protect that sum of money whilst if possible making it work for us in some way.

Any experiences welcome, thank you!

Interest rates are incredibly low. The only way to make it work for you in any meaningful way is through investments, but they come with an element of risk and are not recommended as a short term option.

Max out premium bonds for both of you. £50k each.

And then you’ll have to split the remaining money between two separate accounts to get the bank protection on it. So up to £85k is protected by the bank.

Investments probably not worth bothering if it’s only going to be a short time again until you need the money.

Check Martin Lewis webpage for savings accounts - they vary

Interest rates are too low to bother with really. Investing it in stocks/shares etc is too risky for short term savings that you know you need to get hold of potentially quickly. Your main need is to protect it. As said above, spread it in different banks to get the Govt £85k protection for each different account. Premium bonds is also a good idea - you'd probably win little, but you never know!

I had a similar situation a couple of years ago. I used a Ford Money savings account which had higher interest than regular bank savings accounts. Another similar product was the Marcus online account. I could withdraw/close at any time without penalty.

Interest rates are very low, but you may as well go for the highest of the low rates. It does add up quite a bit when the capital sum is large. Better than making nothing at all.

FSCS do cover temporary (up to 6 months) higher balances of up to £1million if the money comes from the sale of your main residence - www.fscs.org.uk/how-we-work/claims-process/temporary-high-balances/ but if for longer than that as QueenofPain says you'll need to split it into max £85K lumps in different accounts. And be aware the £85k limit is per banking license so multiple banks in the same group may not be covered - www.fscs.org.uk/what-we-cover/banks-building-societies/

We did £50k each in premium bonds and the rest in an N&SI savings account to make sure we didn’t just spend it. We won a small amount every month on the bonds.

as suggested premium bonds...i have 49k and win 25 quid each month so better than being in the bank so far.

Call an investment manager like Charles Stanley or Hargreaves. They will have teams that deal with investments of that size. It depends how long you can tie the money up for. Or look at short term bonds with your bank...try HSBC Premier

Call an investment manager like Charles Stanley or Hargreaves

Do not do this. Leave it in the bank and look for your house. There is nothing to be done in the short term.