deposit of large sums after house sale

son68

I need to keep a large amont (£300,000) on deposit somewhere for a year or so. I really don't want to open 6 new accounts and put it in 50's. Love to hear suggestions about good rates and how I can keep it all together.

opinions4u

Joint names then if appropriate - at least that doubles the FSCS to £100k.

Bank of Scotland IASA Reward pays 5.8% fixed for a year on £5k, allows 4 withdrawals and additional deposits.

Needs to be opened and funded by Wednesday, so sort it out over the phone and walk your initial deposit in to a branch asap!

http://www.bankofscotlandhalifax.co.uk/savings/BOSinstantaccesssavingsaccountreward.asp?!!!!!HomepageISAReward

08456 020304

pmcx9

I have a very similar situation. I read somewhere on this forum that HSBC, Nationwide, Lloyds TSB and Co-op are the 4 "safest" places for savings accounts. Something to do with excellent capitalisation and a history of conservative lending.
I would argue that if the banking system really does collapse then you aint gonna get your "guaranteed" £50k back per institution anyway so maybe just split it amongst these.

However saying that look at these rates;

HSBC 3.15% 6month fixed
Nationwide 5.17% 6month fixed bond
Co-op 4.25% 1year
Lloyds TSB 4.55% 1year

Whereas;

Halifax 6% 1year
bank of cyprus 5.88% 6months

Bromley86

bank of cyprus 5.88% 6months

Another island with a population base too small to fund any guarantee (assuming that there is one - I haven't checked).

duch1

I am in the same position and have spent yesterday and today opening accounts! - but I am confused regarding Northern Rock esaver @ 5.15% - the T&C state only covered to £35k - I thought they were 100% or at least £50k guaranteed? - anyone help me understand this?

soulsaver

Bromley86 wrote: »

Another island with a population base too small to fund any guarantee (assuming that there is one - I haven't checked).

BoCyprus - passported 20k euros, topped up to £50k by our fscs.

Baldur

duch1 wrote: »

I am in the same position and have spent yesterday and today opening accounts! - but I am confused regarding Northern Rock esaver @ 5.15% - the T&C state only covered to £35k - I thought they were 100% or at least £50k guaranteed? - anyone help me understand this?

Ts & Cs are out of date - the £35,000 FSCS limit applied until 7th October 2008 when it was raised to £50,000.

soulsaver

duch1 wrote: »

I am in the same position and have spent yesterday and today opening accounts! - but I am confused regarding Northern Rock esaver @ 5.15% - the T&C state only covered to £35k - I thought they were 100% or at least £50k guaranteed? - anyone help me understand this?

NR are effectively 100% guaranteed because owned by the deepest pockets in the uk (HMGov) but are not allowed to advertise it as it is deemed unfair to other institutions, so paperwork remains as was - leaving just the seed of doubt for the anxious...
Depends on you attitude to risk, but if you want security- spread it around. 6 accounts? Someone on here admitted to having 100+... :doh: not me!

soulsaver

BTW If you do spread it around, leave a bit of headroom below the £50k to allow interest also to be covered.... so 7x43 would be better than 6x50.

evenasus

soulsaver wrote: »

BTW If you do spread it around, leave a bit of headroom below the £50k to allow interest also to be covered.... so 7x43 would be better than 6x50.

Silly me :rolleyes: opened fixed rate bonds this year, just concentrating on keeping amounts of £50K safe. Forgot about the interest that would be paid. :rolleyes:

Oh well, at least my capital is safe...well, safe as can be.

AND...at least I don't have over £250K in one institution, as I did earlier this year.:eek:

meunier

I insist on being paid monthly interest, (as I am in the 250,000+ club too) and that way you can leave £50,000 in and only get your capital back when fearing that any one of the specific institutions (all monies now having been split up) might well go bust. I sometimes find it amusing (not certainly in reference to Cyprus) but to some of the other larger foreign banks ... given the perilous -- truly scary --- positions of several large UK institutions .... and knowing that it was Northern Rock who, in fact, led off the merry dance. There is, I think, a little irony in the top set.