The Lemon Fool

I am thinking of moving but in the present climate for the property market I am being advised that if I can be a cash buyer or am 'proceedable' in estate agent speak that would put me in a very strong position. I know this has been discussed before, but selling first would probably give me something well in excess of £500,000 which I would be unhappy to leave in my bank for any length of time. What would be the best way to secure it as I do not want to be the subject of a bank run. Could be sitting there for anything from a few days to several weeks. I prefer to owe banks money than the other way round.

Dod

NS&I products, like Income Bonds currently paying 2.8% I believe, and you can hold up to a million in them, with instant access. Your counterparty there is HM Government, so presumably safe enough?

The FSCS does cover "temporary high balances in your bank account, building society account or credit union account of up to £1million for 6 months." https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/

But, of course, even so it'll be delays and a faff if the deposit taker fails and you have to claim. I agree that NS&I is the best sleep-well-at-night option....

Lootman wrote:NS&I products, like Income Bonds currently paying 2.8% I believe, and you can hold up to a million in them, with instant access. Your counterparty there is HM Government, so presumably safe enough?

I have a memory of a figure of £1m at NS&I but I couldn't find a source for that, but the info at https://www.nsandi.com/get-to-know-us/security/protect-your-money implies there is no limit.

yorkshirelad1 wrote:

Lootman wrote:NS&I products, like Income Bonds currently paying 2.8% I believe, and you can hold up to a million in them, with instant access. Your counterparty there is HM Government, so presumably safe enough?

I have a memory of a figure of £1m at NS&I but I couldn't find a source for that, but the info at https://www.nsandi.com/get-to-know-us/security/protect-your-money implies there is no limit.

Indeed, but there is a practical limit in that the amount you can put into each of their accounts is limited. For the Income Bonds it's £1m, for the Direct Saver it's £2m, for Premium Bonds it's £50k etc ....

https://www.nsandi.com/products

(Toting up how much you could put into NS&I in total is left as an exercise for the reader )

mc2fool wrote:Indeed, but there is a practical limit in that the amount you can put into each of their accounts is limited. For the Income Bonds it's £1m, for the Direct Saver it's £2m, for Premium Bonds it's £50k etc ....
(Toting up how much you could put into NS&I in total is left as an exercise for the reader )

That's an interesting angle on it, but very valid!