What to do with money?

Associate
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24 Dec 2006
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Bromsgrove, Worcs.
Just about to list our house for sale. Will be looking to move in to rented for 6-12 months. After paying off the mortgage we should have over £210K in equity to hold on to. What can I do to keep it safe? I believe there is a government scheme which protects up to ?£80K. What would you do? Open extra bank accounts? This is not a willy waving exercise..... but a genuine question.
 
Soldato
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5 Mar 2010
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10,606
Just about to list our house for sale. Will be looking to move in to rented for 6-12 months. After paying off the mortgage we should have over £210K in equity to hold on to. What can I do to keep it safe? I believe there is a government scheme which protects up to ?£80K. What would you do? Open extra bank accounts? This is not a willy waving exercise..... but a genuine question.

85k per financial institution. So need to be careful to open separate accounts. You say "we" so presume your wife/partner, they could also open an account, so between you you'd effectively have 170k per institute - which makes things easier for you.
 
Soldato
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21 Jan 2003
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You can put 50K in premium bonds and the rest in a NS&I savings account it'll all be covered then.
 
Associate
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6-12 months may be a bit of a short time frame to be thinking about this, but i would consider moving part of it out of cash and into something like a gold ETF. The probability of another 2008 like banking crisis is higher than it has ever been imo
 
Soldato
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14,637
6-12 months may be a bit of a short time frame to be thinking about this, but i would consider moving part of it out of cash and into something like a gold ETF. The probability of another 2008 like banking crisis is higher than it has ever been imo

Horrendous idea - Don't invest anything over 6-12 months - that's just gambling. any investment should be viewed as medium to long term 5-10 years.

As above - Use various bank accounts/NSI etc.
 
Capodecina
Soldato
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NS&I - or rent out your current house.

The interest rate is pathetic at the moment - you will end up losing money pretty much wherever you go :eek:
 
Associate
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Cotswolds
All wrong. NS&I have bottomed out their rates.

Three bank accounts. Two individual. 1 joint. Covers the lot with £85k per account. £255k of FSCS cover (who are awful btw). Or £100k into premium bonds (chance of £1m) and the rest into a bank somewhere. The interest rates are so laughable it's almost not even worth talking about. £80 a month on £100k at the VERY best with money technically stuck for 12 months+. Would rather not have the bank have your money at that rate. The money they'll make out of that will be far, far more!

That being said, your money is 99.9999999% safe in any of the big banks. Anything goes wrong, they get bailed out anyway....history has shown us this!
 
Caporegime
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21 Jun 2006
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38,361
Gold fell in 2008 anyway. Terrible investment advice.

It gained 30% in 2007
3% in 2008
27% in 2009
27% in 2010

If you happened to buy at a peak and then sell at a drop during 2008 then yeah you would have lost money.

Overall though looking at the figures it would have been harder to lose money than make it.

So I would disagree with your statement.

In fact the UK has borrowed more money than it ever has. The pound is going to take a hammering.

Gold is a wise choice.

I remember I invested in gold before Brexit referendum and sold 1 month after the Brexit vote as the pound just kept falling.

I made a ridiculous amount within a short space of time.

So the value of the pound Vs the market has a huge say in it too.

I cannot see the pound doing well with us heading towards a no deal. America has also picked biden who won't do a deal with us because of the Ireland situation.

Looking at everything as a whole I'm sure gold will do well.

In fact I sold all my stocks and shares last year before the crash. And another poster in this thread was raging and said I was lucky and it was blind luck rather than a smart play.

I ploughed it into gold and paid off a chunk of the mortgage. I bought at 1500 and it's currently at 1800. I fully expect it to hit 2500 within the next 2 years. If it hits 2200 I'll sell half and if it hits 2500 I'll sell the other half.

But don't listen to me it's blind luck supposedly.
 
Soldato
Joined
20 Dec 2004
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13,313
OP just needs somewhere safe to put their money for a few months....not armchair economists and their feelings.

You've got 85k covered per person, per institution. So just split it up across a few ISAs or other simple account...and don't get hung up on interest rates it's literally not worth your time at the moment.
 
Soldato
Joined
29 Oct 2004
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10,884
You can just put it in a single account and not worry:

https://www.moneysavingexpert.com/savings/safe-savings/

In light of the coronavirus, and the difficulties people may have in spending or moving these temporary high balances, the FSCS has extended this protection. Now any high balances resulting from a life event deposited between 6 August 2020 and 31 January 2021 have £1 million protection for a period of 12 months rather than six.
 
Soldato
Joined
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10,884
What qualifies as a 'life event' though? :confused: Presumably it's designed to deal with people's estates being dealt with upon their death.

All details can be found in the link I posted, which also links to the FSCS site. It looks like OP would be covered
 
Soldato
Joined
12 Feb 2009
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4,169
Nothing is "significantly" better these days, but there are much better rates than they offer. It's very odd given the government needs money...

Yes and they borrowing at 0.22% on issuing 10 Year bonds. When you consider the low admin costs as these are sold in very large blocks it's probably cheaper than a 0.1% saving rate for private individuals.
 
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