5 Year investment

Ray21753

At present I have a sum in SAGA which is admin by Birmingham Mid Shires, I know I am covered for upto £85,000. But If I take out a different bond with a different amount which is admin by BMS am I covered for an additional £85,000 ?
Also if I deposited £50,000 for this 5 years, what would I expect to get each month as interest? (Not % but actual cash)
Regards
Ray21753

dunstonh

The £85k limit applies to deposits not investments.

Is the bond a deposit based product or an investment based one? (Bond being one of the misused words going)

Ray21753

This is a deposit, placed into an account for a set number of years.
So thats why I wanted to know if it's covered and also what return I can expect on a monthly basis



The £85k limit applies to deposits not investments.

Is the bond a deposit based product or an investment based one? (Bond being one of the misused words going)

RetiredInThailand

If you already have 85K with Saga then maybe you should look at Scottish Widows or Yorkshire Bank for your new deposit. Both pay better interest than Saga over 5 years anyway.

Ifts

Ray21753 wrote: »

At present I have a sum in SAGA which is admin by Birmingham Mid Shires, I know I am covered for up to £85,000. But If I take out a different bond with a different amount which is admin by BMS am I covered for an additional £85,000 ?

No.

These financial organisations all share one lot of £85,000 protection:

• AA
• Bank of Scotland
• Birmingham Midshires
• Halifax
• Intelligent Finance
• Saga
• Aviva

So if you have £85K in Saga and another £85K in BMS, you will only be covered up to £85K under the FSCS in your sole name. Its £85K protection in your sole name and £170K protection for a joint account.

More information here explaining how the Financial services compensation scheme (FSCS) works and what financial organisations share the protection -
Are Your Savings Safe? Full guide to protect your cash: http://www.moneysavingexpert.com/savings/safe-savings

Also if I deposited £50,000 for this 5 years, what would I expect to get each month as interest? (Not % but actual cash)

If you are referring to this 5 year fixed rate bond (4.55% gross) from BMS: http://www.bmsavings.co.uk/savings/fixed-term-savings/716/5-year-fixed-rate-bond-monthly-interest.aspx?WT.ac=BMFTSFRB-716

then: £50K x 4.55% = 2275 / 12 = ~£189 per month before tax.

There is a handy calculator to work out the returns on your savings on this page: http://www.moneysavingexpert.com/savings/savings-accounts-best-interest#calc

click on the 'Full Savings Calculator' link in the box titled 'In this guide'.

You should spread your savings between different financial organisations covered by the FSCS to stay on the safe side.

Here is the best buy table from moneyfacts.co.uk for long term fixed rate savings bonds: http://moneyfacts.co.uk/compare/savings/fixed-rate/long-term-bonds/

As you will see in the best buy table, there are other 5 year fixed rate bonds offering more than the BMS 5 year deal, so you can earn more with the added benefit of your money being covered by the FSCS protection.

This link might be of interest to you (some handy info): http://www.moneysavingexpert.com/savings/

Ray21753

Many thanks guys for your help...........
Regards
Ray

opinions4u

Ifts wrote: »

No.


These financial organisations all share one lot of £85,000 protection:

• AA
• Bank of Scotland
• Birmingham Midshires
• Halifax
• Intelligent Finance
• Saga
• Aviva

Aviva? Where does that come from?

dunstonh

opinions4u wrote: »

[/LIST]Aviva? Where does that come from?

I havent checked and just making a random guess. However, it could apply to the Aviva platform. Unbundled platforms with their cash accounts have that bit under the FSCS protection

Ifts

opinions4u wrote: »

[/LIST]Aviva? Where does that come from?

From the link on this website: http://www.moneysavingexpert.com/savings/safe-savings

If you type 'Saga' in to the box titled 'Which Banks Are Linked?'

Also shows Aviva sharing its licence with above list here: http://moneyfacts.co.uk/guides/savings/depositor-protection-schemes230911/