Best place to put £50k+
Discussion
We're selling our house next week and moving into rented while we gear up for our next self-build. We have a few 'pots' of money - some from redundancy payments that will form part of a pension (£50k ish) and some from the equity in the house (£1m). The house equity money will largely be needed for the new build at some stage this year but there will still be £2-300k left over.
All ISAs are maxed out, as are pension contributions. I'm thinking of putting it into a money market fund, such as Vanguard's Sterling Short Term Money Market as the rate seems to be better than any savings account around, there's no penalty for accessing the money, and getting to the money only takes a few days.
Have I missed anything or are there any alternatives I should be looking at?
All ISAs are maxed out, as are pension contributions. I'm thinking of putting it into a money market fund, such as Vanguard's Sterling Short Term Money Market as the rate seems to be better than any savings account around, there's no penalty for accessing the money, and getting to the money only takes a few days.
Have I missed anything or are there any alternatives I should be looking at?
Assuming you want no risk then a quick look though MSE ‘s / Savers Friends etc tables might be worth it.
MM account one option or a mixture of notice accounts / instant access cash accounts etc.
There are some tracker accounts worth looking at - we have one with Skipton BS.
Up to £1m any one FI for “ temporary “ balances up to 6 months should be remembered if you wanted to put all in one.
NS&I might have something suitable too albeit probably lower rate.
MM account one option or a mixture of notice accounts / instant access cash accounts etc.
There are some tracker accounts worth looking at - we have one with Skipton BS.
Up to £1m any one FI for “ temporary “ balances up to 6 months should be remembered if you wanted to put all in one.
NS&I might have something suitable too albeit probably lower rate.
alscar said:
Assuming you want no risk then a quick look though MSE s / Savers Friends etc tables might be worth it.
MM account one option or a mixture of notice accounts / instant access cash accounts etc.
There are some tracker accounts worth looking at - we have one with Skipton BS.
Up to £1m any one FI for temporary balances up to 6 months should be remembered if you wanted to put all in one.
NS&I might have something suitable too albeit probably lower rate.
Thank you - I'll take a look at that MM account one option or a mixture of notice accounts / instant access cash accounts etc.
There are some tracker accounts worth looking at - we have one with Skipton BS.
Up to £1m any one FI for temporary balances up to 6 months should be remembered if you wanted to put all in one.
NS&I might have something suitable too albeit probably lower rate.
worldwidewebs said:
All ISAs are maxed out, as are pension contributions.
You may or may not be aware that you can “carry forward” unused pension contribution allowances from the past 3 tax years:https://www.gov.uk/guidance/check-if-you-have-unus...
I'm in a similar situation and have gone in a mix of Royal London + Vanguard money market funds and low coupon UK gilts
Gilts have the advantage of no CGT on the capital gain part.
Eg have a look at T26A + TN28 depending on when you might need the money
I generally use the gilts for paying income tax and the money market funds for property development, as and when projects need the cash
Gilts have the advantage of no CGT on the capital gain part.
Eg have a look at T26A + TN28 depending on when you might need the money
I generally use the gilts for paying income tax and the money market funds for property development, as and when projects need the cash
Edited by PoorCarCollector on Friday 2nd January 18:39
PoorCarCollector said:
I'm in a similar situation and have gone in a mix of Royal London + Vanguard money market funds and low coupon UK gilts
Gilts have the advantage of no CGT on the capital gain part.
Eg have a look at T26A + TN28 depending on when you might need the money
I generally use the gilts for paying income tax and the money market funds for property development, as and when projects need the cash
Are there actually any benefits of MMFs? They are taxed just like regular saving accounts, and the distribution is practically the same as savings accounts too. Gilts have the advantage of no CGT on the capital gain part.
Eg have a look at T26A + TN28 depending on when you might need the money
I generally use the gilts for paying income tax and the money market funds for property development, as and when projects need the cash
Edited by PoorCarCollector on Friday 2nd January 18:39
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