Best interest savings accounts for large amount?

Colin297

Unfortunately, this doesn't pertain to me.

It does, however, relate to someone close to me.

This person has over £500k in a relatively low interest account. It's safe before you guys go into the whole protection element.

I told him he should be getting 5% with that kind of money. I've seen others on here claim that get such figures (i think). He didn't believe me.

What do you guys recommend?

innovate

They should be seeing an IFA. Find one on http://www.unbiased.co.uk/ if you/they don't know one.

Colin297

Thanks innovate. To be honest, though, this person is a bit old school and is not likely to pursue that - despite my urges.

All i can do therefore, as a compromise, is find a good paying interest account. Or is there none readily available for such amounts?

opinions4u

Colin297 wrote: »

This person has over £500k in a relatively low interest account. It's safe before you guys go into the whole protection element.

I told him he should be getting 5% with that kind of money. I've seen others on here claim that get such figures (i think). He didn't believe me.

The links at the top of the page talk about 2.85% for easy access and well under 4% for a five year term deposit.

So what drives your 5% assertion?

For what it's worth I'd wheel him into a reputable IFA office and take it from there.

If he does deposit, this FSCS info is an important read.

Sceptic001

opinions4u wrote: »

The links at the top of the page talk about 2.85% for easy access and well under 4% for a five year term deposit.

So what drives your 5% assertion?

Indeed. 5% was recently available for 5-year fixed accounts, but sadly no more.

opinions4u wrote: »

For what it's worth I'd wheel him into a reputable IFA office and take it from there.

If he does deposit, this FSCS info is an important read.

Yes, an IFA is advisable if venturing into anything more adventurous than bog-standard savings, otherwise d-i-y using the link opinions4u provides.

G_M

An IFA will be of no help if he is looking for a bank savings account, though as said above the rates are no longer 5%!

I fail to understand how you can say : "£500k in a relatively low interest account. It's safe before you guys go into the whole protection element." If it is in a single account, it is not (100%) safe.

If he wants to look at diversifying, accepting increased risk, and looking for higher potential returns, then an IFA can advise on investments (which are distinct from savings).

Colin297

G_M wrote: »

An IFA will be of no help if he is looking for a bank savings account, though as said above the rates are no longer 5%!

I fail to understand how you can say : "£500k in a relatively low interest account. It's safe before you guys go into the whole protection element." If it is in a single account, it is not (100%) safe.

If he wants to look at diversifying, accepting increased risk, and looking for higher potential returns, then an IFA can advise on investments (which are distinct from savings).

2 reasons:

1) He's with a reputable bank which isn't going bust.
2) The hysteria on here about protection etc, whilst savvy, isn't really necessary IMO.

Honestly, is a bank going to go from 100% fine to bust overnight? No. You'd see the signs a mille away and you'd move your money. Not that that's going to happen, anyway.

The good banks are all far better equipped for any "problems" than the likes of Northern Rock and others were a few years ago.

I bet my bottom dollar not one person will lose ANY money from major banks anytime in our life times. Therefore, I'm not really interested in this topic.

grey_gym_sock

if it's 1 of the very big banks, then i don't really disagree with you on risk ...

if he is determined to stick to savings accounts, then he can't do much better than putting some into fixed-rate term deposits. he could put money into a few different length deposits, and keep a bit back in instant-access.

but ideally he should be looking beyond savings accounts for some of his capital (unless he already has millions invested, and this £500k is just what he's keeping in cash).

Colin297

grey_gym_sock wrote: »

if it's 1 of the very big banks, then i don't really disagree with you on risk ...

if he is determined to stick to savings accounts, then he can't do much better than putting some into fixed-rate term deposits. he could put money into a few different length deposits, and keep a bit back in instant-access.

but ideally he should be looking beyond savings accounts for some of his capital (unless he already has millions invested, and this £500k is just what he's keeping in cash).

Yeah, it's one of the big banks.

And yes - no doubt that would be the shrewdest way to manage it. TBH it's more a case of having lost a lot of money on investments that he's sick to the teeth with the whole thing and just wants safe keeping for a while. :money:

soulsaver

The best interest rates for deposits isn't going to be from a major bank - so the discussion on diverification is wasted anyhow - you will diversify to take advantage of th e best deals because they'll be with the likes of the Punjabi National, Firstsave, Post Office(Anglo Irish) etc.

FWIW I agree there is little chance of a major bank tipping over - on the otherhand if you're getting poor interest why not get it from 6 major or minor banks? Or 3 if you can trust joint.
If somehow one bank shows signs as you say you'd be standing in a long queue trying to get your dosh diversified in a panic....

RetiredInThailand

opinions4u wrote: »

The links at the top of the page talk about 2.85% for easy access and well under 4% for a five year term deposit.
So what drives your 5% assertion?

Like most (all?) interest rate comparisons, the link at the top of the page is full of very incomplete information. Someone should do something about it.

4.5% is still easily available for fully-guaranteed 5-year term deposits, from more than one deposit taker.

And if you are prepared to step (partially) outside the deposit-protection safety net then 4.6% is available.