How safe to invest £125K with BLME?

Dogopolis

I already have £85K invested with BLME's notice account, which is still at 1.7% for me, now 1.1% for new customers. I have some rainy day money with NS&I where I will always be able to access it, but I've got another £40K maturing soon. I definitely don't want a fixed term investment with interest the way it is at the moment, so that leaves BLME at 1.7% or NS&I at 1.16%. Just how much risk am I really taking that BLME will go bust if I go above £85K?

TBC15

If you missed it 1.7% goes down to 1.2% on the 12/08/20. 

SFindlay

Dogopolis said:

I already have £85K invested with BLME's notice account, which is still at 1.7% for me, now 1.1% for new customers. I have some rainy day money with NS&I where I will always be able to access it, but I've got another £40K maturing soon. I definitely don't want a fixed term investment with interest the way it is at the moment, so that leaves BLME at 1.7% or NS&I at 1.16%. Just how much risk am I really taking that BLME will go bust if I go above £85K?

Unlikely to go bust but why would you gamble 40k for 0.04%?? 
Also don't really understand what you mean by not wanting to fix rate "with interest the way it is at the moment" as it won't be increasing anytime soon so why wouldn't you secure best rate if not needing access to the cash?? 

colsten

SFindlay said:

Dogopolis said:

I already have £85K invested with BLME's notice account, which is still at 1.7% for me, now 1.1% for new customers. I have some rainy day money with NS&I where I will always be able to access it, but I've got another £40K maturing soon. I definitely don't want a fixed term investment with interest the way it is at the moment, so that leaves BLME at 1.7% or NS&I at 1.16%. Just how much risk am I really taking that BLME will go bust if I go above £85K?

Unlikely to go bust

Did you consult your crystal ball?

colsten

SFindlay said:

Dogopolis said:

I already have £85K invested with BLME's notice account, which is still at 1.7% for me, now 1.1% for new customers. I have some rainy day money with NS&I where I will always be able to access it, but I've got another £40K maturing soon. I definitely don't want a fixed term investment with interest the way it is at the moment, so that leaves BLME at 1.7% or NS&I at 1.16%. Just how much risk am I really taking that BLME will go bust if I go above £85K?

Unlikely to go bust

Did you consult your crystal ball?

Dogopolis

TBC15 said:

If you missed it 1.7% goes down to 1.2% on the 12/08/20. 

Where do you get that from? I haven't received any emails, (just went and checked every email containing BLME in case I missed it.) It still says 1.7 on their website and supporting PDF with no mention I can see of an upcoming change. It says they give at least 60 days notice of rate changes, and as they only ever communicate with me by email I'm pretty sure I haven't been informed.

Dogopolis

SFindlay said:

 as it won't be increasing anytime soon so why wouldn't you secure best rate if not needing access to the cash?? 

Given you need to leave it for 3 years to just barely beat the NS&I rate, I'm not going to be certain that the rates won't change in 3 years. If they don't change, the interest lost is not that much, plus I retain access to the £40K in case something major does crop up.

mr_accountant

TBC15 said:

If you missed it 1.7% goes down to 1.2% on the 12/08/20. 

Should have received email around 12/6/20 to confirm rate reduction and options.

To answer your question directly, I would not put above £85000 per any UK banking license, let alone where the rates variation is minimal

soulsaver

Personally, I'd always stay below the FSCS threshold - think how foolish you'd feel if the worst happened explaining to your OH how you lost £40000 so you can earn an extra, say, £200 pa (0.5%).
But firstly, are you sure BLME will allow you to add money, at the prevailing rate, when the product has been withdrawn? 
"If we change the expected profit rate we will advise you before you proceed with the deposit or give you the opportunity to exit your deposit. "
That could apply to additional deposits, so maybe clarify that first? 

If so will blme allow you to convert to Joint? Gives £170K cover.

wmb194

I definitely wouldn't go above the FSCS protection limit as it appears to be a small, relatively unprofitable business. Take a look at its group filings at companies house.
https://beta.companieshouse.gov.uk/company/08503102/filing-history

Dogopolis

soulsaver said:

Personally, I'd always stay below the FSCS threshold - think how foolish you'd feel if the worst happened explaining to your OH how you lost £40000 so you can earn an extra, say, £200 pa (0.5%).
But firstly, are you sure BLME will allow you to add money, at the prevailing rate, when the product has been withdrawn? 
"If we change the expected profit rate we will advise you before you proceed with the deposit or give you the opportunity to exit your deposit. "
That could apply to additional deposits, so maybe clarify that first? 

If so will blme allow you to convert to Joint? Gives £170K cover.

I definitely received no email in June, and when they withdrew the 1.7%, (in February I think) I did ask them and they said I could keep depositing, and have been doing so several times since 1.7 was withdrawn from new signups.