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Best short-term home for probate estate money

Caspar35
by Caspar35 02 May 2011  |  Comments 3 comments  |  Love Love  0 loves

We are finalising probate on my father-in-laws estate and c£150k will come in in pieces from his savings, ISAs, home sale etc. We will then use that to buy a home, with help from our own savings.

Where could we consider for funds that are not likely to be in an account for long (2-3 months?), and which we would like quick access to when the time comes (c21-30 days from offer to payment) so we can be cash buyers and use that to lever house prices down. We already have a NatWest savings account which will allow swift payment and withdrawal but which will not pay much.

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Comments (3)

  • SoftwareBear
    Love rating 216
    SoftwareBear posted

    any regular deposit account ... split it up between institutions because of the limit on compensation if the institution goes bust ... don't put it into shares.

    Posted on 03 May 2011 | Love Love  0 loves Report
  • MikeGG1
    Love rating 909
    MikeGG1 posted

    The compensation limit is £85K per person per institution, so no problem for you if you are using a joint account. However, it is better to split it anyway because if one fails then you can draw from the others while waiting for the compensation to arrive.

    You can get accounts paying 2.5% - 3% for instant access if you look around. They are usually headlined but the interest normally falls after a year. This would not be a problem for you as your timescale seems to be in months. If the year would be exceeded, you could always transfer on to somewhere else.

    Watch out for house prices. There could be falls when interest rates start to rise or rises if rate rises become less likely.

    Mike

    Posted on 03 May 2011 | Love Love  0 loves Report
  • bubu2000
    Love rating 14
    bubu2000 posted

    When I was in the same situation, I found that the best deals lay with new accounts because of the "Bonus" offers which expired at the end of the first year. So it may be worth opening one or 2 new accounts for the money - the comparison websites were invaluable to this end, eg moneysupermarket.com and the love money one.

    Posted on 08 May 2011 | Love Love  0 loves Report

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