Someone I know has sold a house but they couldn't manage to marry up the timings with the purchase. So for probably a month or so they have about £200k to park.
They'll need fast access, possibly at fairly short notice, and it needs to be safe, but it'd be nice to earn a few hundred on it without jumping through hoops. Assume they haven't already got a suitable account, as I don't know that.
Any suggestions?
EDIT I suppose they'd need to split it across 3 places each with the £85k protection.
Last edited by: smokie on Fri 28 Oct 22 at 23:51
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£200k for a month at a max of (say) 2% for instant access would be £330.
Without wanting to appear blasé, I would suggest the main concern is to ensure the capital is secure in 3 separate protected accounts.
For the sake of a few hundred ££ extra interest I would want to sleep easily at night without worrying whether my life savings were at risk.
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There is a temporary protection of up to £1m for up to 6 months just for these purposes.
See here: www.bankofengland.co.uk/prudential-regulation/authorisations/financial-services-compensation-scheme
But I don't trust the banks (having worked for several) and would split the money across several banks as Terry suggested.
Just be aware that several banks share the same cover and therefore splitting your savings within the same group is likely to put you at risk. For example the Bank of Scotland PLC and Halifax share the same protection. There is a link to a PDF within the above document that shows companies that share the same licences.
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Thanks - I'd already sussed out the £85k but useful to know about the temporary protection thing. having read about it, it seems pretty bullet-proof in this instance - I'd just advise that they don't do other deposits and withdrawals which would muddy the waters.
I guess it's just a matter of finding the best rate together with the most readily available and easiest managed one. It's a bit of a minefield as the detail of each needs to be checked - e.g. some limit the number of transactions in a year to 3 (which wouldn't matter), other limits the amount you can send on a Faster payment (e.g. Tesco is £10k a day) and I'm sure there are other gotchas
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We have exchanged con-tracts on the sale of our owse and have £500k to play with.
Going into rented cottage for one month, possibly more??
Made an offer (full asking) on an owse on Tuesday but, they want buyers to jump through hoops (stuff that!)
"Closing Date for Bids – Monday 31st October 2022 at 12:00 noon.
Thank you for your interest in Craigangar House, South Petherwin, PL15 7LF. We are instructed by our clients to ask all interested parties to submit their best and final offer in writing, on our formal form, by the given deadline. The owner intends to make a decision on which offer to accept based on the information provided during this process so any offer made has to be your best and final bid.
Please find enclosed the bidding form which we require you to complete in full and return to us together with any additional documentation that will help support your offer. Our client does require proof of funding in all cases so if you are a cash purchaser then a bank statement or similar would provide suitable evidence, or if you require a loan or any finance an Agreement in Principle or letter from the lender will be required.
The deadline for the bidding is set for Monday 31st October at 12:00 noon. We require bids to be submitted on the bidding form and placed in a sealed envelope and returned to our offices at 10a Broad Street, Launceston, Cornwall, PL15 8AD or if easier, emailed back to launceston@webbers.co.uk Please ensure that your bid is clearly marked ‘Best & Final Offer for Craigangar House, South Petherwin, PL15 7LF’ so as to ensure that your bid remains unopened and unknown until the deadline. Any bids received after the deadline cannot be considered. Once the bids are opened we will report to our client for their instructions so there is likely to be a small delay whilst they consider the various offers. Our client does reserve the right not to accept any offers if they so wish. If you are the successful bidder you will be granted an exclusive period in which to exchange contracts (i.e. the property will be withdrawn from the open market during that period). Progress will be reviewed after an agreed period of time and the seller will have the option to remarket if sufficient progress has not been made.
The offer you make on your bidding form is the price that we expect you to pay on completion and we would not expect there to be an attempt to renegotiate terms without just cause. Our client does reserve the right to re-offer the property if they see fit if this situation arises. If you have any queries relating to the bidding process please do not hesitate to contact us".
We look forward to receiving your bid. Good luck!
Last edited by: Dog on Sat 29 Oct 22 at 07:50
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Don’t see anything particularly hoopy there Dog? Looks pretty standard stuff to me.
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Well Cc, we've bought & sold 10 properties o'er the years, but never had to go down the road of best and final offers, either selling or buying.
Times they are a changing of course, and I quite often see properties at offers over down here.
There is still the new build at Bolventor going on (and on and on etc.) not ideal for us though - que sera sera!
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My mate's house was marketed at best and final offer but people seemed to get more than one bite at the cherry, i.e. some buyers were invited to up their offer after the date. Used to be called gazumping.
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I believe NS&I don't have an £85000 FSCS limit, all deposits are fully covered (although the interest is carp).
We sold a house earlier this year. The first buyers attempted to gazunder us (came back with a lower offer) just before completion. The agent told us the market had moved on and advised us to up the price by £10k, which we got. I think we were very lucky to complete the week before Liz Truss et al wrecked the conomy and mortgage interest rates climbed. SWMBO combs the property market and reports nothing is selling at the moment and prices are being dropped.
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>I believe NS&I don't have an £85000 FSCS limit..
I had a review with my FA a few weeks ago. I've recently taken cash dividends instead of ploughing it back into shares and he told me to stick it in Premium Bonds until I'd decided where it was going. Only up to £50k per account and only goes into the draw the following month but a chance of £1m tax free and better than sitting in my current account. Two working days to withdraw.
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Premium bonds - that's not a bad idea if it's likely to take much more than a couple of months. Though maybe unfortunate timing - if money went in on say 3 Nov I think the first eligible draw would be January.
Though I'd be a bit miffed if they won the million, having had 2 x full holdings for quite some years now and rarely ever getting a prize over £50.
Last edited by: smokie on Sat 29 Oct 22 at 11:13
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>>Premium Bonds...
My mum has about a 10th of my holdings in premium bonds (I don't have anywhere near the full holding).
She has "won" about 4 times as as me each year over the last 4 years and has doubled her money - she gets at least £25 every other month and I think her notional annual interest rate is about 20%.
It's mildly infuriating. My annual interest rate is about 1%.
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>>I believe NS&I don't have an £85000 FSCS limit..
They don't.
>>Two working days to withdraw.
If they decide to query a large withdrawal from one of their accounts, there may be a delay.
We could so easily have lost our current property by moving our house buying funds to them, after the initial 6 months temporary protection with a building society, as mentioned above by zippy.
Fortunately, we didn't, but it's an experience I wouldn't wish to repeat.
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(Replying to BT)
Yep, mine seems a lucky case - should have completed Friday but maybe early next week now. The person has somewhere to go in the meantime, and not a great deal of stuff so no storage required. The place being bought is going slowly though is unlikely to stop. It was already a fairly keen price but I reckon another month or so and it would drop another 10k or so. But as it's all in progress and is what the buyer wants I don't think any further price negotiation is likely.
Last edited by: smokie on Sat 29 Oct 22 at 11:11
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>>some buyers were invited to up their offer after the date. Used to be called gazumping.
Which is why we don't want to get into that game.
I'm old school (with an emphasis on the old) and have always made offers up to (down to) as much as £25k below (and got it) the asking price, or paid full price if I thought it was worth it, but never over.
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We moved house a while back after a lengthy spell in a rented property, but as soon as the words 'sealed bids' (or some newfangled auction option) were uttered, we were gone.
I don't blame sellers trying to obtain the best price when receiving multiple offers, but as buyers it wasn't for us.
I hope you find a suitable property soon, Dog.
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>>I hope you find a suitable property soon, Dog.
Thanks guvnor.
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Where to put a load of cash short term - Terry
