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penbat1

How To Save £200k In Saving Accounts ?

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If you had 200K to save in internet saving accounts how would you organise it and into what accounts bearing in mind that in the unlilkely event that a savings provider goes bust you are only compensated by 90% up to about £35,000 in each case ?

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I would not place all saving in Internet accounts. I would some money in building sociey branch accounts for example the Derbyshire has regular saving account that pays 5.40% gross (4.32%) but limits maximum of £1000 per month deposit.

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you are only compensated by 90% up to about £35,000 in each case ?

Hi penbat - where did you get that information from? I've got my STR funds in various internet savings accounts - more than £35k! :unsure:

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Hi penbat - where did you get that information from? I've got my STR funds in various internet savings accounts - more than £35k! :unsure:

Its the Financial Services Authority (FSA) that underwrite the savings providers. Its unlikely any of them will go bust but its something to bear in mind.

Edited by penbat1

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Its the Financial Services Authority (FSA) that underwrite the savings providers. Its unlikely any of them will go bust but its something to bear in mind.

And be careful if the accounts are all linked back to the same company (many internet companies owned by high streets banks). There was a discussion on this earlier. I.e. Bank of Scotland and Halifax (HBoS). Are you covered for £35k in each account or not etc.

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Yes, you need to check if the bank is just one of the many subsidiary businesses. I.e Bank of scotland and halifax are technically owned by the same parent company (HBOS is the uk legal entity I believe). The FSA apparently only cover 90% of the first 30k, and then a percentage of the next 3/5k?. So if you are really concerned, spread it around. Also note that there doesn't seem to be anything mentioned about how and when you could claim it back, i.e £1 a week for the next 30 years!

Perhaps we should put together the definitive guide to this, links to the FSA rules, simple FAQ and a list of which banks and accounts are owned by which parent companies and pin it?

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I'd use the ISA allowance (as already suggested), then add 30K into Premium Bonds (any wins are tax free). Then diversify some into funds, gold but leave a larger proportion into risk free savings accounts.

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I'd use the ISA allowance (as already suggested), then add 30K into Premium Bonds (any wins are tax free). Then diversify some into funds, gold but leave a larger proportion into risk free savings accounts.

I already have investments in funds - too much in fact. If i have as big a cash buffer as possible i shouldnt have to touch the fund investments for years and years and years giving them a good opportunity to grow.

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What about currency accounts? With that much you could open something offshore - spread the risk away from sterling.

How about a FAQ for currencys.

What is the best currency/currencies

and

how do i move my sterling in a cost effective way to other currencies but still be in control of it.(ofshore accounts etc) - i take it these will not be affected by the Sterling movement.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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