DON'T save £35000 in 9 top accounts!!

nodonovan

For once Martin has made a fundamental miscalculation in today's email, by suggesting that you should put £35000 in separate accounts following the Chancellor's new rules, if the savings provider goes bust. Sure, you're original investment would be perfectly safe but any interest you had made would not. What you should do, for 'perfect safety', is put in less than £35000 and check your account every so often, withdrawing interest as it reaches the £35000 threshold. The further you are from the £35000 original input, the less frequently you will have to check; it depends how organised (or sad) you want to be.

Biggles

All we can say at the moment is that the amount guaranteed is £35,000.

We don't know what it will be next year, or in five years' time.

It might be reasonable to anticipate that it keeps up with inflation, thus more or less with your increased balance, in the future. It might go down. In any event, many savers have their interest paid to them and not retained in the savings account.

Even Martin can't predict the future! He is just telling you what is the right level at the moment.

nodonovan

Biggles wrote: »

It might be reasonable to anticipate that it keeps up with inflation, thus more or less with your increased balance, in the future.

If you've invested that amount of money in an account that only keeps up with inflation, you've put it in the wrong account. :eek:

Nick O'D

b33r

nodonovan wrote: »

For once Martin has made a fundamental miscalculation in today's email, by suggesting that you should put £35000 in separate accounts following the Chancellor's new rules, if the savings provider goes bust. Sure, you're original investment would be perfectly safe but any interest you had made would not. What you should do, for 'perfect safety', is put in less than £35000 and check your account every so often, withdrawing interest as it reaches the £35000 threshold. The further you are from the £35000 original input, the less frequently you will have to check; it depends how organised (or sad) you want to be.

Most saving's account allow you to nominate somewhere where the interest is paid to though so just send it there, be it your current account or another savings account so you earn the same interest on it.

Something which certainly doesn't bother me at the moment, i wish I had 1 lot of 35k, nevermind multiple

The_Fiddler_2

b33r wrote: »

Most saving's account allow you to nominate somewhere where the interest is paid to though so just send it there, be it your current account or another savings account so you earn the same interest on it.

Something which certainly doesn't bother me at the moment, i wish I had 1 lot of 35k, nevermind multiple

But make sure the current account is with a different institution

b33r

The_Fiddler wrote: »

But make sure the current account is with a different institution

hehe, good point!

roddydogs

Actually the best place to put any amount is NR as ALL the money is safe!

Aegis

roddydogs wrote: »

Actually the best place to put any amount is NR as ALL the money is safe!

But only if you had it in before the government's deadline. Otherwise it's just the usual protection.

nilrem_2

nodonovan wrote: »

For once Martin has made a fundamental miscalculation in today's email, by suggesting that you should put £35000 in separate accounts following the Chancellor's new rules, if the savings provider goes bust. Sure, you're original investment would be perfectly safe but any interest you had made would not. What you should do, for 'perfect safety', is put in less than £35000 and check your account every so often, withdrawing interest as it reaches the £35000 threshold.

Are you sure 'we' are not getting just a little paranoid here? As we have said many times before It is highly unlikely that a UK bank or building society would be 'allowed' to go bust and lose savers cash, in the highly unlikely event of it happening most of us would be more than happy to get our 'pot' back without being too worried over the interest.

Why put up with all the inconvenience of moving interest etc and cash all over the banking system for something that is most unlikely to happen, each of us has a much better chance of being killed on the roads than losing cash should a bank fold yet it does not stop us leaving our houses!:)

isofa

nilrem you took the words right out of my mouth, every few days there is a paranoid discussion like this.

If you are worried, I'd put all your savings under the bed in my opinion (great cartoon in Private Eye with this sentiment this week)

meester

isofa wrote: »

nilrem you took the words right out of my mouth, every few days there is a paranoid discussion like this.

If you are worried, I'd put all your savings under the bed in my opinion (great cartoon in Private Eye with this sentiment this week)

Don't be daft.

The sensible advice is, IF you are worried about the bank going bankrupt, then put £30,000 in each account, to allow for interest. If you are somebody that's worried, putting £35k in is just not sensible. If OTOH, you aren't worried, you can stick £100k in there or whatever.