Parking £600K for a few months

by Readers Question

4 years ago

Parking £600K for a few months

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Parking £600K for a few months

Someone has offered me about £600K for an unencumbered property. I’d happily sell now, but am too busy to buy anything new till at the earliest Jan or Feb. Any tips on where to get the best short term rate for such an amount while still being able to access the funds should I need them?

A month delay in accessing them would be acceptable. Parking £600K for a few months

Thanks

David Mensah



Comments

Mark Alexander

4 years ago

Premium bonds?
.

simon Bruce

4 years ago

Assuming you dont want to put more than £180k in each bank into accounts in joint names.

If you are married, you can get 3 x Santander 123 accounts each paying 35 on £20k so that does £60k! On in your name, one in your wife's name and one in joint names. That's £50 gross each account each month. You need a couple of DDs set up on each account but they can be small and only taking annual payments. You also need to remember to pay in £500 into each account each month.

TSB do a higher rate but only on a small amount so its not really worth the aggro.

Metrobank and Santander do 1% on their easy access internet savings accounts.

If you have a savings account with Barclays, you will find they have reset your rate after one year to something like .2% and not told you about it. I went in an complained and they closed the account and re-opened it and now its paying .8%

Mark Alexander

4 years ago

Sainsburys Bank appear to be paying 1.35% gross on their eSaver special accounts and from what I can see this is a genuine rate and does not include an annual bonus which seems to be the case for their competitors, i.e. Tesco Bank Internet Saver, Post Office Online Saver Issue 11.

Source >>> http://www.moneysupermarket.com/savings/search/results/?goal=SAV_EASYACCESS
.

Peter Hindley

4 years ago

Simon Zutshi (& others) of PIN fame has launched http://www.crowdproperty.com Might be worth a punt to help other property people but I don't think you can get short term access if needed. I have no involvement other than having received their promotional mailing.

Adrian Jones

4 years ago

I would include Premium Bonds as part of my strategy. £40k per person maximum holding paying on average 1.35% per annum tax free. You have to hold the bonds for one calender month before they are entered in the draw. They can be withdrawn within eight days.

Don't forget to maximise ISA allowance which I think is £15k per person per annum.

Presumably you have checked your CGT position.

David Mensah

4 years ago

Reply to the comment left by "Adrian Jones" at "30/08/2014 - 10:20":

Many thanks for these helpful replies. 1.35% is pretty dismal, no wonder we all invest in property!

Adrian Jones

4 years ago

Reply to the comment left by "simon Bruce" at "29/08/2014 - 17:25":

HI Simon,

Can you let me have details of the Barclays account paying 8%.

Thanks.

Mark Alexander

4 years ago

Reply to the comment left by "Adrian Jones" at "30/08/2014 - 11:10":

I think you missed the decimal point Adrian.

If only ..... LOL
.

Adrian Jones

4 years ago

Reply to the comment left by "Mark Alexander" at "30/08/2014 - 11:12":

That's a shame! Have a good weekend Mark.

simon Bruce

4 years ago

Having re-read my post, I have made a couple of typos, so to clarify:

The Santander 123 account pays 3% gross on £20k, you used to be able to have as many as you want, one person had 18 of them apparently.

You can now open one each and then another in joint names. It's hard work but the best solution I can find for £60k between 2 people to give instant access.

After you have done this £60k, it's downhill from there!

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