If you’re about to sell a property, or have recently completed the sale, you might not be sure what to do with the cash – even if it’s just for a short while before you purchase your next property.
Suddenly seeing hundreds of thousands, even millions of pounds in your bank account can be quite daunting when it happens, but it’s important to act quickly.
Here’s three things you should know before you complete the sale.
From the moment the funds from your property sale land in your bank account, they qualify as a Temporary High Balance.1
What this means is that your FSCS protection (normally £85,000 per banking institution) is increased to £1,000,000 per banking institution for six months from the moment they are accessible to you (i.e. in your bank account).
With this in mind, you don’t need to worry about your finances being over-exposed for six months.
However, any delays in placing these funds into high interest earning savings accounts could cost you thousands in interest.
Once the funds are in your bank account, unless they are placed in a savings account they will start depreciating in value due to inflation (currently at 3.8%).
It’s important to act quickly with your funds so you don’t miss out on high interest rates.
If, for example, you had £500,000and deposited this immediately upon completion into a 3.99% AER 6-month fixed rate, you would receive £9,818.90 upon its maturity.
Once this has matured, with Akoni you could then spread the funds across multiple banking partners in a variety of savings accounts, including Instant Access, Notice accounts and Fixed-term.
To sign up for an Individual or Joint savings account with Akoni, register here.
If you’ve helped sell a loved one’s property who is now going into a care home, as Power of Attorney you can use a cash savings platform like Akoni to enhance the interest earned on cash assets.
With care home fees averaging nearly £1,400 a week, and local authorities not providing financial assistance unless the value of savings and assets falls below the upper capital limit (see table below), funds from a property sale are the most common means of paying for care homes.2
If you have Power of Attorney, you can use the proceeds of a house sale to open a Power of Attorney savings account with Akoni. One application allows you to deposit funds in multiple banks in a variety of deposit products.
Email contact@akonihub.com or call 020 3137 9388 (Monday-Friday, 9am – 5pm) to register your interest.
Check out our best rates as of 01/10/2025 for POA accounts:
1) Temporary high balances | Check your money is protected | FSCS
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