Anyone sold and moved into rented? Can I ask you a question?

[woodenchair]

We're hoping to exchange in the next day or two (crossing everything) and although we haven't made any money in this house we still have the profit from our last house.

We going to move into rented as we want to build in a year or two, but need to do something with the money in the mean time.

Where did you put it, or invest it? I'm feeling a bit overwhelmed at the prospect of being responsible for it!

Hi Woodenchair
I am in rented having sold in March.
We just have our money in savings accounts because we never know when we may need to get it to buy the next house (I wish! can't wait)
We have spread it around with the £50K guarantee so it's in different ones and in my name as I'm not a tax payer.
If you don't need it for a while, I would consider savings accounts which tie you in.
Go to Martin Lewis' site moneysavingexpert.com I think it is. He will have a section on savings.
Good luck in your rented house.

Our 'STR fund' is in NS&I and currently earning jackshit (but at least it's safe... for now...). I agree it's a responsibility and much more anxiety than I expected. I think, though, (my humble opinion) that inflation is becoming much less of an issue than it was a year ago, we might even see deflation, so I would concentrate on rock solid principal guarantee and not worry so much about returns.

As prices are likely to keep falling, earning interest isn't your major worry. It would be nice for your money to earn enough to cover your rent (if that's possible), but a lump sum now is likely to be worth more in a couple of years' time just because prices are falling. City people I know are going into gilts because (apparently - I know nothing of these things having zero savings) they are very safe.

We sold up this year and I was terrified about the safety and guaranteed returns, I eventually chose the post office bond and instant saver should we need to put a deposit down on something . They are backed by the bank of Ireland which guarantees full amount not just 50k, their customer service has been terrible though as they have been inundated with people moving their savings over to them.

Thanks for these, they've definitely given me some ideas.
I like the idea of the post office bonds. I remember having a post office savings account about 20 years ago, it was giving 12% interest then!

Defo NSI, my partner is a financial type and it says it's rock solid there and guaranteed. Most banks would only guarantee a certain sum of money, so if you have more than 35-50K, I'd split it or keep it safe.

we have done exactly that earlier this year. I have topped up both our ISAs for the year, NS and I for one, a local B Society for the other. I have got two no-access fixed fate bonds, one with bradford and Bingley, the other with ICICI, both good rates. I also have an ICICI Hi-Save account and an Egg savings account. Oh, and we bought 5 grand of premium bonds for a laugh but haven't won anything yet.

make sure your ISa limits are met for your maximum tax free savings, and split your cash up. I figure i will always be able to get hold of at least some of my money straight away, although no plans on buying again for at least two years.

When we did this a few years ago we put some money into premium bonds. With interest rates so low at the moment you're not going to get a huge return no matter where you put the money and there is a (very very small) chance of winning a big prize with premium bonds. Worst come to worst if you don't win anything you at least get back what you put in.

There is a limit on how much you can invest in premium bonds, I think we just put most of the money into a 60-day notice account.