Selling a house: keeping the proceeds safe

Last checked: 14 October 2026. We check this page regularly against official sources.

After a sale completes, you may briefly hold more money than ever before. Whether you’re buying again soon, renting for a while or downsizing, the first priorities are usually the same: keep the money protected, and keep it reachable while you decide what comes next.

This page covers the cash side only: how the proceeds are protected, where they can sit before a purchase, how to think about money you won’t need for a while, and tax. It doesn’t cover mortgages, buying costs or property decisions.

This is general information and guidance, not personal financial advice. ClearRates is not authorised by the FCA to give advice.

Struggling with bills or debts? Free, confidential help is available from MoneyHelper’s debt advice locator, StepChange and Citizens Advice. If you’re selling because of money worries, it’s worth talking to them first.

Before completion: a few checks

• Where the money lands: your solicitor or conveyancer usually sends the proceeds to an account you nominate. Many people confirm those bank details by phone, using a number they already trust, because property sales are a common target for email fraud.
• What’s left after the sale: the mortgage redemption, estate agent and legal fees come out first. Knowing the net figure helps with planning.
• Expensive debt: credit cards and loans usually cost more in interest than savings earn, so some people review these once the money arrives.

Protection: the six-month window

The FSCS normally protects £120,000 per person, per banking licence. Brands that share a licence share that limit.

Selling your main home is a qualifying life event for temporary high balance protection. That means the FSCS may protect up to £1.4 million for six months, starting when the money becomes legally yours or is first paid into your account. Things to know:

• Main home only: second homes don’t count. The FSCS says property transactions must relate to your main residence.
• Joint accounts: each person can be protected up to £1.4 million.
• Moving the money keeps protection, but the six-month clock doesn’t restart.
• Evidence: the FSCS may ask for property sale documents, so many people keep these safe.

If you’ll hold more than £120,000 with one banking group for longer than six months, a common approach is to spread it across separate banking licences before the window ends. ClearRates shows the licence holder and a shared-licence tag on every account. See FSCS protection explained.

Buying again soon?

If the money is going into your next purchase, access usually matters more than squeezing out extra interest. Things to check:

• Easy access first: easy access accounts keep the money ready. Some have withdrawal limits.
• Transfer limits and timing: some accounts cap daily transfers or take a day or more to pay out. Large purchases often need money in place before completion day.
• Fixes and notice periods: a short fix or notice account may pay more, but only works if it ends before the money is needed. Purchase dates often move.

Not buying straight away?

If you’re renting, moving in with family or downsizing, a common approach is to split the money by when it may be needed:

• Might need it any time: a buffer in easy access.
• Known date within a few years: notice or fixed accounts. Some people “ladder” fixes so one matures each year.
• Tax-free interest: up to £20,000 a year across all ISAs in 2026/27. From 6 April 2027 the cash ISA limit is due to fall to £12,000 a year for under-65s; people 65 or over keep £20,000. Compare cash ISAs and fixed cash ISAs.
• Money for five years or more: over long periods, cash can lose value to inflation. Investing is outside what ClearRates covers, and this is where regulated advice is worth considering.

Compare types in easy access vs notice vs fixed.

Tax

Capital Gains Tax: GOV.UK says you don’t pay CGT when you sell your home if all of these apply: it’s been your only home and your main home for all the time you’ve owned it, you haven’t let part of it out (a lodger doesn’t count), you haven’t used part of it only for business, the grounds are under 5,000 square metres, and you didn’t buy it just to make a gain. If any of these don’t apply, there may be some tax to pay. See GOV.UK.

Interest on the proceeds is taxable savings income. It counts towards your Personal Savings Allowance: £1,000 for basic-rate, £500 for higher-rate and £0 for additional-rate taxpayers. A large balance can use that up quickly. See the PSA guide.

Work through the steps

What should I do with my savings? goes through the protection limit, tax and when you need the money. It is information, not a recommendation. The moment list on that page links back here.

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Written by ClearRates. General information, not personal financial advice. Rates change often, so check the provider’s terms before you apply. ClearRates may earn a commission from some links; this never affects how we rank rates. Last checked 14 Oct 2026.

Sources (all accessed 14 Oct 2026)

• FSCS, Temporary high balances (sale of main home; £1.4m; six months; joint accounts £1.4m each; second homes not covered; evidence; page last reviewed 11 May 2026): https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/
• FSCS, Deposit protection limit (£120,000 from 1 Dec 2025; shared banking licences): https://www.fscs.org.uk/deposit-limit/
• GOV.UK, Tax when you sell your home: Private Residence Relief (conditions incl. 5,000 sq m): https://www.gov.uk/tax-sell-home
• GOV.UK, Individual Savings Accounts (£20,000 in 2026/27): https://www.gov.uk/individual-savings-accounts
• HMRC, Cash ISA limit reduction (published 17 Sep 2026; 65+ keep £20,000): https://www.gov.uk/government/publications/reduction-in-the-cash-individual-savings-account-isa-limit/cash-individual-savings-account-isa-limit-reduction
• GOV.UK, Tax on savings interest: how much is tax free (PSA): https://www.gov.uk/apply-tax-free-interest-on-savings/how-much-is-tax-free
• MoneyHelper, Mortgages and homebuying (selling and downsizing guides; loaded via fetch tool, curl returns 403): https://www.moneyhelper.org.uk/en/homes/buying-a-home
• MoneyHelper, Pension Wise: https://www.moneyhelper.org.uk/en/pensions-and-retirement/pension-wise
• MoneyHelper, How to choose a financial adviser: https://www.moneyhelper.org.uk/en/getting-help-and-advice/financial-advisers/choosing-a-financial-adviser
• FCA Financial Services Register: https://register.fca.org.uk/

Questions

Is all my house sale money protected?

Up to £1.4 million for six months as a temporary high balance, if it's your main home and you meet the FSCS's conditions. After that, the standard £120,000 per person per banking licence applies.

Does selling a second home or buy-to-let count?

No. The FSCS says temporary high balance protection for property only covers your main residence.

Do I pay tax when I sell my home?

Usually not on the gain from your main home, if Private Residence Relief applies. Interest the money earns afterwards may be taxable.

Where can I keep house sale money until I buy again?

Many people use easy access accounts, because purchase dates can move. A short fix or notice account only suits money that won't be needed before it ends.