All going well I will be selling my flat next month and will be left with a large sum before I purchase my next home - any recommendation on where to put the money to best use?

Matt | MLN| 18/09/2020 | 6

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Matt's question in full

Hi! All going well I will be selling my flat next month and will be left with a large sum (£150,000) before I purchase my next home. Do you have a recommendation as to where I could put this money to best use during that time (like 4-6 months) Thanks!

Anna Stoughton's Response

Hey Matt!

As you are looking to save a sum over the very short term, I would not suggest that you invest this cash sum. Instead, I would ensure that you have utilised your ISA allowance (if not, consider putting £20,000 into a cash ISA) and then spread the money between a couple of banks so that you are fully utilising the Financial Services Compensation Scheme (FSCS). The FSCS protects your money up to £85,000 per bank. Please be aware that if you set up a cash ISA and then withdraw it, you could lose your allowance for the year if it is not a flexible ISA. I know that interest rates are currently extremely low, but as your time period is so short it’s most likely the safest option for holding your next house deposit.

One opportunity you may want to consider is NS&I, for example premium bonds or income bonds – check out the website here https://www.nsandi.com/easy-access-saving/ -  Hope that helps and good luck!

Our Expert

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Anna Stoughton

As a financial adviser, Anna enjoyed helping clients achieve their financial goals. Now Relationship Manager at Boring Money, She hopes to use her experience to help the masses navigate the financial maze with crystal clear tips and information.

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