Where is the best temporary home for the proceeds of my house sale?

Question: We are selling our home and moving into a flat until we find our next house. We’ll have around £835k to find a home for in the meantime. We’ll need access to all of this when we buy and we don’t know when that will be - plus as we have some expensive storage costs, we would like monthly interest.

Answer: As you’ll be buying another property in the not-too-distant future, the most important things to consider when deciding where to put the proceeds from your house sale are access to your money and the security of your capital. 

Because you don’t know exactly when you’ll need the funds, it wouldn’t make sense to tie them up in a fixed-term account. With most fixed-rate bonds, you can’t access your money until maturity, and while a handful of providers may allow early withdrawal, it’s rare and usually comes with a hefty interest penalty. For your circumstances, an easy access savings account or a short-notice account is likely to be far more appropriate. 

Another key point is protection. Normally, the Financial Services Compensation Scheme (FSCS) covers up to £85,000 per person, per banking licence – so with £835,000 you’d usually need to spread your savings across multiple providers to ensure everything is fully protected. If the money is in joint names, you can place up to £170,000 with each provider. 

However, as this is the sale of your main residence, you should benefit from a special feature called ‘FSCS Temporary High Balance Protection’. This gives you up to £1 million of protection per person, per authorised bank or building society, for six months from the date you receive the funds. It’s designed precisely for situations like yours, providing peace of mind while you search for your next property.

On the question of monthly interest, while many providers pay annually, there are options that pay monthly – worth checking before you apply, especially if you’d like the income to help cover your storage costs. At the time of writing, the most competitive easy access accounts pay over 4% AER, though some come with balance limits. For example, Charter Savings Bank pays 4.11% monthly interest (4.19% AER if left to compound) on balances up to £1 million, however Cahoot’s Simple Saver pays a little more – 4.31% gross monthly (4.40% AER) – but it’s capped at £500,000.

To see the current top rates, take a look at our Best Buy tables.

Notice accounts can sometimes pay a little more, but they require you to give advance notice (say, 30, 60 or 90 days) before making a withdrawal. The top-paying monthly income shorter notice account at the time of writing is with app-only Prosper which is offering a 65 day notice account (via GB Bank), offering 4.42% monthly (4.52% AER), but withdrawals require 65 days’ notice – and remember that you cannot access your capital unless you have given that notice, so for the small amount of extra interest, the worry of not being able to access your cash when you need it is probably not worth it.

Once the six-month temporary protection period ends, you’ll need to think about longer-term protection. One option is to split your funds into around five joint accounts to stay within FSCS limits. Alternatively, for simplicity, you could consider NS&I Income Bonds. This account offers monthly interest at 3.36% (3.30% AER), and because NS&I is backed by HM Treasury, your money is 100% secure regardless of your balance. While the rate is lower than the very best on the market, you could hold up to £1 million per person in one place without the hassle of spreading across multiple banks.

Another option, if you really don’t have any idea when you might need the money, is to consider is a cash savings platform, which can provide a simple and efficient way to spread your funds across multiple competitive accounts while earning attractive interest rates.

A platform such as Savers Hub, powered by Insignis, allows you to open, manage, and switch between a range of high-interest savings accounts through a single, secure log-in. This approach not only offers flexibility and control but also ensures that your cash remains easily accessible while working effectively for you.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

The Financial Conduct Authority (FCA) does not regulate cash or tax advice.

Rates correct as at 23/09/25.