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?

Published: December 7, 2021 at 4:16 pm

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

Advertisement

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 0.75 per cent) or one year bonds (around 2.1 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 1.10 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.

Advertisement

Email your questions to paul.lewis@radiotimes.com

Advertisement
Advertisement
Advertisement

Sponsored content