Eggs in one basket?? Good or bad idea?

lisa701

I'm struggling to find an ISA where I don't need to be a current account holder or have lots to invest. My options are very limited but one provider where I do fit the criteria is my mortgage provider.

Now I'm a little unsure about this. Would it be a good or bad idea to open a savings account with my mortgage provider?

I understand if I fall into arrears they could take my savings, but what if I don't fall into arrears. Could they still decide to use my savings to repay part of my mortgage?

Also what if that company went bust? My savings would be well below the compensation limit, but would they take my mortgage into account in some way?

Thanks

atush

No, not unless you fell into arrears.

Keep looking at the best buy lists for ISAs, you'll find something elsewhere I am sure.

grey_gym_sock

if they went bust, i think you get your savings back in full providing they're under £85k. if your savings were more, they might get partially offset against your mortgage.

to be hyper-cautious, i'd look elsewhere for an ISA, regardless.

R_P_W

Are you looking for a cash isa or a stocks and shares isa? You use both words saving and investing which are different things.

Lansdowne

R_P_W wrote: »

Are you looking for a cash isa or a stocks and shares isa? You use both words saving and investing which are different things.

What an unhelpful comment. The questioner makes it quite clear she is talking about a savings account and doesn't have lots to invest in it.
I'm not sure why she thinks it is difficult to find a simple cash ISA with any provider, especially the building societies, maybe the most attractive rates (like Nationwide or Santander much discussed on these boards) are restricted to existing account holders but there are plenty around even with those two at perhaps lesser rates but still perfectly safe.

lisa701

The rate I have on the ISA I opened last year is 0.5%. To get anything more than that it looks like I either need another account with the provider, have a minimum of £500 to open an account or they are with providers that have no presence in this area, but you only deal in branch. By post is no good for me as I don't have a cheque book so no way of sending them any money and to be honest I don't trust the postal service to get it there. I also don't want to use the Halifax or Barclays as I have an overdrawn account with one and a career development loan I'm repaying with the other - don't want to be saving anything in an account there for obvious reasons.

Looks like I'm going to get no better deal by moving from Nat West so I might as well stick with them.

R_P_W

Lansdowne wrote: »

What an unhelpful comment. The questioner makes it quite clear she is talking about a savings account and doesn't have lots to invest in it.
I'm not sure why she thinks it is difficult to find a simple cash ISA with any provider, especially the building societies, maybe the most attractive rates (like Nationwide or Santander much discussed on these boards) are restricted to existing account holders but there are plenty around even with those two at perhaps lesser rates but still perfectly safe.

Sorry but what is 'unhelpful' about it? The OP used the words 'saving' and 'invest' in the post - do you not think it important to clarify what is being asked?

bowlhead99

R_P_W wrote: »

Sorry but what is 'unhelpful' about it? The OP used the words 'saving' and 'invest' in the post - do you not think it important to clarify what is being asked?

The OP wants to open a savings account with a mortgage provider. The OP wonders whether the savings could be confiscated by the provider and offset. The OP notes that the savings are within the compensation limit. The OP is consistently talking about what could happen to their savings ; the fact that they "don't have a lot to invest " doesn't mean they are looking for S&S ISAs or need to be criticised for being unclear.

atush

Who holds your mtg?

I'd ask these Qs in the ISa board.

sabretoothtigger

saving and investing which are different things.

True today but in the traditional sense, savings in a bank was an investment in its strategy to maintain its business reliably and so return your money.

Before they guaranteed savings, giving money to a bank was a judgement on its business practice which is basically investing.

If the OP doesnt have 85k I'd suggest you are overthinking it. If you ever get near 85k reduce your mortgage LTV and negotiate better terms, would be most productive