Sue writes: “Where should we put money from the sale of the family home so that it’s safe and accessible?”
Money in savings accounts is safe up to £85,000 per bank — double that in a joint account. You can split bigger amounts between a number of banks. Find the best deals — either instant access (paying up to 1.5 per cent) or one year bonds (around 2 per cent) — from savingschampion.co.uk.
But for much larger sums there’s only one place that is safe: National Savings & Investments. Money with NS&I is safe to any amount.
Easy access Income Bonds (invest up to £1 million each) pay 1.15 per cent interest (direct to you, so you’d need to reinvest it). It is taxable, but the first £1,000 of all your interest is tax-free (£500 for higher-rate taxpayers).
Cash ISAs pay lower rates but interest is tax-free to any amount. NS&I Income or Growth Bonds pay higher rates over one or three years but are limited to £10,000 per bond per person. Returns are taxable.
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