Reaching the maximum in savings allowed in banks

flow2 · 5 March 2018 at 5:37PM

If the maximum money allowed in banks is £85,000 - how would you go on, if you want to save the maximum in a cash isa for the next 10years ?

Would it be best having 3 or 4 different isa accounts or keep it all in national savings, where there is no limit?

movilogo · 5 March 2018 at 5:42PM

Just use different banks!

£85k per bank is the amount FSCS will reimburse you in case bank fails.

5aday · 5 March 2018 at 6:09PM

A single account would be easier to manage.

My wife has several accounts, which she tries to keep below the £85,000 guarantee limit. She found it difficult to check which of the variously named banks are really one for the purposes of the guarantee scheme. Even now they are safely deposited, her fixed-rate investments keep expiring, making it difficult to keep them earning interest.

National Savings would seem much simpler.

Being all in the same brokerage account, my long-term equity investments, have been very easy to manage. They have only required the occasional investment of accumulated dividends etc, and of course, have yielded a much higher return.
(although unlike you, I delayed considering putting them in an ISA, and am therefore risking giving some of the gains to the Government in the form of capital gains tax)

Keep_pedalling · 5 March 2018 at 7:52PM

I would never want to save that much in cash for 10 years easpecially not in ISAs with very low interest rates.

You really should be looking at investments for that sort of timescale. S&Ss ISAs would be a better bet.

bowlhead99 · 5 March 2018 at 9:49PM

flow2 wrote: »

If the maximum money allowed in banks is £85,000 - how would you go on, if you want to save the maximum in a cash isa for the next 10years ?

It's not the maximum *allowed* ; you're allowed to put as much as you want with any financial institution. It's just the amount covered by the compensation scheme protection if they go bust.

Would it be best having 3 or 4 different isa accounts or keep it all in national savings, where there is no limit?

If you earn more interest rate from the three or four top-paying banks than you do in NS&I, then I would use those banks.

However for me the point wouldn't come up as I'm unlikely to need a stockpile of 10 years maxed ISA contributions (£200k+) all in cash. Probably £50k or so a the rest would be in longer term Investment ISAs to keep up with inflation it grow in real terms. But everyone's different and some want to save £200k to pay cash for for their house or supercar or whatever.

Newly_retired · 7 March 2018 at 12:19AM

I am now of an age where I am not sure I want to start investing.

Typical advice on these boards would be that I hold too much in cash savings and should invest, whilst others might advise , given my age
( my user name is long out of date ) that investment are for the long term.
None of us knows how long we have got left on this earth, or whether we will need to pay for care, so I feel too hesitant to start investing.

jimjames · 7 March 2018 at 10:28PM

Newly_retired wrote: »

I am now of an age where I am not sure I want to start investing.

Typical advice on these boards would be that I hold too much in cash savings and should invest, whilst others might advise , given my age
( my user name is long out of date ) that investment are for the long term.
None of us knows how long we have got left on this earth, or whether we will need to pay for care, so I feel too hesitant to start investing.

I'm still unsure why you wouldn't want to invest at least part of your money. To be blunt if you die then why would you need to worry about how your investments are doing? Likewise for care, if you want better income then surely that's what matters rather than the capital value on a specific day?

Reaching the maximum in savings allowed in banks

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