Safest method of saving

Zither

First post - nice to meet you all, you seem like a switched on bunch!

What's the safest method of saving out there? I currently have 5 ISAs worth of savings (so not a massive amount) with NatWest but i'm starting to feel a bit exposed with the whole RBS debt thing going on.

I'm not after the best return ever, just somewhere I can put my savings, not worry too much and accrue a little interest (got to be more than my 0.5% I currently get!).

Could anyone offer me an opinion please (that doesn't involve under my mattress)!? I have some genuine fears about the current to medium term state of the economy.

Much love,

Thanks!

Ae666

If you are looking for really safe investments the NS&I is probably the best.
I think savings are pretty safe now with the £50,000 maximum guarantee offered by the banks.
NS&I dont offer the best rates but if you are willing to tie your savings up for a fixed period you can get a fair rate

bigfreddiel

Ae666 wrote: »

If you are looking for really safe investments the NS&I is probably the best.
I think savings are pretty safe now with the £50,000 maximum guarantee offered by the banks.
NS&I dont offer the best rates but if you are willing to tie your savings up for a fixed period you can get a fair rate

Actually NS&I is not limited to £50K max that banks are - its unlimited!

This from their web:

"Because National Savings and Investments is backed by HM Treasury, you can rest assured that all your capital is 100% secure, however much you invest."


Fill your boots!

fj

Zither

Thanks for your replies!

Yes, i've been thinking about NS&I. I appreciate that there are now guarantees for savers but I'm thinking that if sterling ever tanked/banks went massively insolvent then I don't want to be stuck in a many-months-long process of getting my dosh back.

Only thing is that I don't really want to lose my ISA allowance - am I right that I can't transfer old ISAs to NS&I ISAs?

Thanks for your help

MoneySavingUser

5 ISA's assuming they are all from previous years they won't be earning much - you should transfer them to a newer high paying one look at: https://forums.moneysavingexpert.com/discussion/401374

NB: Post Office is with Bank of Ireland so protected by Irish protection scheme not British

NS and I rates are a bit lower: http://www.nsandi.com/interest-rates but you do get more security

Zither

Hey thanks for your reply and heads up on Post Office + link.

I agree - they're earning me nothing much at all and I really do want to transfer them, i'm just dubious about which is the safest option to transfer them to.

Do you guys think i'm being paranoid by looking for safest investment? Are you guys comfortable investing in ISAs with banks generally?

kermitfrog

Zither wrote: »

Do you guys think i'm being paranoid by looking for safest investment? Are you guys comfortable investing in ISAs with banks generally?

Yes, I do think you're being paranoid. With current low interest rates, you can't afford not to find the best available. And as long as you don't exceed the £50k per account limit, your money is safe.

stator

You are being a little bit paranoid. I would split your money in two and put it in two well known banks that are covered by the FSA guarentee. I would split it because the compensation is not instant, you could be left without your money for a few months if the bank goes bankrupt. So by using two seperate banks you are avoiding having all your money tied up in this way.

expatasia

I'm excluded from NS&I savings products as am outside the UK - what do you know about index linked gilts - (UK govt bonds)? How safe are they?

Thanks

happyrichard

Paranoia will destroy you...a famous JK once sang.
I think you are a little over cautious.
I would do as been mentioned here- split your cash and as long as it is under 50k in any bank (be aware of group vs single entity) then you will be fine.
If you are not fine, then we have bigger worries in the UK than you and I losing our money...the whole place will be in civil unrest!

Sceptic001

expatasia wrote: »

I'm excluded from NS&I savings products as am outside the UK - what do you know about index linked gilts - (UK govt bonds)? How safe are they?

Thanks

They are, quite literally, as safe as the Bank of England. The question is, how safe is the Bank of England?

They are government gilts and can be purchased in the same way as fixed rate gilts, or you can get them through an etf such as ishares