Q. My wife and I are selling our house and moving into a flat until we find another house we want to buy. We’re wondering what is the best thing to do with our sales proceeds in the meantime — about £835,000. We would need access to all of this when we buy and we don’t know when that will be. We would also like monthly interest as we will have expensive storage costs to pay each month.
Alan, Middlesex
Anna Bowes replies
The most important things to consider here are access to your money and the safety of your capital.
Since you don’t know exactly when you’ll need the funds, it would be unwise to tie them up in a fixed-term account with no access until the term matures. A handful of companies may allow early withdrawal, but this is rare and usually comes with a significant penalty on your interest. Easy-access savings accounts or short notice accounts would be far more suitable for you.
