Help and Thoughts required.

ox5

Hello, i have now got 3 savings accounts, 1x ING 1 x Natwest and 1 x Santander as well as a ISA. The rates i am getting for these saving accounts are 2.75%.

My question is, is it best to share my spare money about and put it in to these saving accounts, or would it be best to put all my spare cash into just one of these accounts.....they are the ones where you can put money in or out without penalty etc.......i know i could get more interest if i the money was held in a account that was locked away for a length of time, or if i only made a 1 or 2 withdrawals a year.

So, is it best to share between 3 @ 2.75% or put all in a account @ 2.75%

Thoughts and guidance please.

Regards.

RIP Mr F.O'Connell (Formby):A

opinions4u

Interest wise, it makes no difference.

Tax wise, you should max out the ISA first (as you don't have to pay tax on the interest).

Protection wise, the FSCS only covers £50k per financial institution. So don't go over £48k unless you have to (leaving headroom for interest).

In the end, do what's best for managing your money.

xrjtg

The FSCS compensation limit is currently expected (unless it's changed again whilst I wasn't looking) to rise to around £80000 from 1 January next year, so even if you're extremely cautious the "headroom" under £50000 isn't likely to be necessary.

ox5

:beer::beer::beer:*BUMP*:beer::beer::beer:

alanq

A few advantages in having several accounts:

If you need cash and one bank's services are unavailable (e.g. following 3 failed attempts at logging in) you have the others until service resumes.

If you need a large sum in a hurry you can transfer more funds than the maximum permitted by any one bank.

If someone breaches security of one account they don't get all of your savings. (The bank may cover a loss if you have not been negligent but it may take a while to sort out)