Safety First Or Not?Advice Please!

CROMPTON_2

I have 3 one year fixed rate savings accounts with Saga,Coventry and West Bromwich BS all at the maximum safety limit of £50k which I opened in July this year at over 6.5% monthly income rates which I need to live off.
As I now have another £50k to invest should I split the cash between these accounts and hope for the best or open another much lower monthly income account?

Lokolo

Thats really upto you, we can't tell you what to do.

If it all goes belly up, can you afford to lose that final £50k + interest gained? If not, then don't.

fullstop

You won't be able to transfer any new money into your 3 fixed rate accounts after they have been opened. Sorry to say but you will have to settle for lower rates at the moment.

Lokolo

Checked Saga, they don't allow additional deposits.
Coventry no idea as its not on their website (branch only)
West Brom, theres loads of savings account and I can't be bothered to find out.

fullstop - just so you know, there are some fixed rate products which do allow additional deposits, Halifax for one.

Uncertain

OK

Let's assume you can put additional deposits in the other two accounts. Is the money then stuck there for the full term? If yes, then this increases the (slight) risk.

If the best you can find at the moment is, say, 4% and you assume the FSCS makes your £50K totally secure you are paying 2.5% p.a. (£1250) before tax for this security.

So far the gov has covered the full amount of any personal deposit. I feel it would need a total doomsday situation for this not to continue.

If it was me (and it is not so it is your decision) I would increase the balance on the two accounts if I could, PROVIDING, I could withdraw at my discretion.

If I was locked in for several years I may well opt for the best return I could find elsewhere.

HTH

CROMPTON_2

Uncertain wrote: »

OK

Let's assume you can put additional deposits in the other two accounts. Is the money then stuck there for the full term? If yes, then this increases the (slight) risk.

If the best you can find at the moment is, say, 4% and you assume the FSCS makes your £50K totally secure you are paying 2.5% p.a. (£1250) before tax for this security.

So far the gov has covered the full amount of any personal deposit. I feel it would need a total doomsday situation for this not to continue.

If it was me (and it is not so it is your decision) I would increase the balance on the two accounts if I could, PROVIDING, I could withdraw at my discretion.

If I was locked in for several years I may well opt for the best return I could find elsewhere.

HTH[/quot Thanks for the replies
I am able to continue deposits with Saga but am unable to withdraw for the 1 year term.
I am able to continue to deposit with Coventry which is an instant access fixed rate account.

evenasus

fullstop wrote: »

You won't be able to transfer any new money into your 3 fixed rate accounts after they have been opened. Sorry to say but you will have to settle for lower rates at the moment.

I opened an easy access - no penalties fixed 6.25% rate account with Coventry BS at the end of October. I have considered adding to my £50K but I don't think it's worth the risk.