proceeds of house sale

Looking for some advice on where is best for my mother to deposit 580k which will be proceeds of house sale. She will be looking for somewhere to purchase so will need access to the funds to complete on any purchase (OK for deposit). Due to close sale early next month and will start house hunting early next year. Is she better to split deposits so they are guaranteed and if so between which banks? Any advice much appreciated!

askaboutmoney.com/showthread.php?t=102329

She would be best to split it up so that she has no more than €100,000 in any one bank. You don't really have a lot of options seeing as you need to go to at least 6 different banks. The interest rate isn't worth worrying over too much as they are very low at the moment, dirt is very high (going up to 41%) and she will only be saving for a short time so go with the accounts that have the more favourable terms.

Hi Mim45,

Firstly, you obviously need to go for an instant access account if you need the funds soon. Perhaps, a notice account with a short period would also be okay?

Have a read of the instant access and notice account best buy thread.

Decide the level of risk per bank you are willing to take. The normal advice is not to exceed 100,000 EUR per bank because anything over 100,000 EUR is uninsured. However, sticking to this rule, will involve a lot of hassle for you as you will need to open 6 bank accounts. Also, you will struggle to find 6 good paying instant access accounts.

A way around it might be to put half the amount in Rabo, who have the highest credit rating here and split the other half among other banks.

Therefore, if you definitely need instant access, one option might be:
95,000 EUR into KBC Smart Access (interest rate drops on the entire amount above 100k and you need a buffer for interest).
100,000 EUR into PTSB Bonus Booster (provided you will not make more than 2 withdrawals).
100,000 EUR into Nationwide UK Easy Access.
285,000 EUR into RaboDirect On-Demand Savings Account.

Just a suggestion, maybe you think 285k is too much to have in one bank.