Reader questions: Where is the safest place for large sums of money?

Where should we put money from the sale of the family home so that it’s safe and accessible?

House with SOLD notice

Sue writes: “Where should we put money from the sale of the family home so that it’s safe and accessible?”

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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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Email your questions to paul.lewis@radiotimes.com