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As title. Selling 1 house, and will have £150k in the bank for 1-2months before purchase of next house.
I assume tax will not be insignificant even for 1 month, so I’m thinking we need to maximise ISA’s, take out Premium Bonds?
or is it ok in the bank?
ta
Casino?
C&H
Jeeez soooo predictable!😂
With bank rates so low I think you’d struggle to run up much of a tax bill.
Premium bonds capped at £50k and if only for 1-2 months you’d be lucky to win £50!
Assuming it's your money and not the banks? ie no mortgage on it?.
Marcus account, you’ll get 1.5%, and no access restrictions. Get an account each if you’re worried about Goldman Sachs going belly up.
no tax to worry about, it’s only a few hundred pounds so don’t faff with ISAs
Leave it in the bank. At best you might get 1% in an instant access savings account, £150k x 1% / 12 = £125 per month. That's if they pay interest daily.
Coke and hookers..
watching with interest as about to be in the same situation, likely just putting it in a high interest savings account with immediate access and make a few hundred $$$
likely just putting it in a high interest savings account with immediate access and make a few hundred $$$
Good luck finding one of them..🙄
<p>Even if you were taxed it would only be on interest payable.</p>
Exchange for bitcoins..
Exchange for bitcoins..
What could possibly go wrong?
You will pay the cgt get your cash. If you are lucky enough to find an account that will give you interest as well as instant access for that amount the gain over 60 days would be so small it’s not worth thinking about.
if you do find a way to make significant money then let us all know 😁
Ok so tax not so much of an issue.
Premium Bonds for a month surly worth a punt ? Or is it impossible to do it for such a short period?
Seems you’re limited to 50k premium bonds a month. You could do that, but it’s down to luck if you get a return.
If you are lucky enough to find an account that will give you interest as well as instant access for that amount the gain over 60 days would be so small it’s not worth thinking about.
You can get 1.5%: you can open a Marcus account through Goldman Sachs online in minutes, no deposit or withdrawal restrictions.
that’s almost £200 a month - worth it IMO!
Premiums bonds would only likely be in long enough to be in 1 draw - Your Bonds become eligible for the draw one full calendar month after you buy them. So when you buy Bonds in November, they’ll be in every draw from January.
So, I would just split it into the 2 best online easy access savings account to cover yourself if one of them goes bust to ensure you are under the FCA compensation scheme limit which is circa £70 or £80k per financial institution - ensuring of course that who you use IS covered by the FCA.
Ginger one - fair point about value thing. Was thinking now to either just leave in current account or premium bonds.
Are current accounts at same risk from bank going bust ? (Not that I would hope First Direct would go bust in the next 2 months)
You should be fine in a regular bank, but as we saw with RBS and Northern Rock etc, it could happen. Who knows whether than Govt would bail out a bank this time? I luckily was covered when I had money in the Icelandic bank which went under in 2008.
However, there are now Stress Tests in place for banks means it is far less likely as they have to have a certain amount of cash available based on their size.
IMHO you are more likely to earn more in a 1.5% saving account than Premium Bonds, but there is a chance you could be lucky and win more. Depends if you just want to guarantee to make a bit or are happy to make less on the chance of winning a bit more.
You should be fine in a regular bank,
Balances up to 85K per account are protected in UK banks/building societies. So you'd need to open another one to be 100% safe.
Or just read my previous post where I had already mentioned that 😀
1.5% on that is c£190 in interest before tax per month.
The tax saving on putting cash in an ISA looks like about £10 a month. I'd put it in the best account your currnet bank can offer - anything else is unlikely to be worth the effort for the payback.
No point with the ISA at all. From MSE:
the new personal savings allowance (PSA) means every basic-rate taxpayer can earn £1,000 interest per year without paying tax on it (higher rate £500),
Aside from the the limited amount you can pay in, if it’s short term you’ll not need to pay tax on the interest at all.
if you’re a higher rate payer and it ends up being three month or longer you start to lose out, but you’ll soon be into a new tax year so even that is limited concern at this time of year.
other option is current accounts with higher % for the first few thousand, but lots of hassle for a few pounds over the short time you’ve discussed, plus you often have to do the DD switch etc to benefit from the higher interest.