Safest places

ChilliBob

Guys, 
Besides NS&I where else would you consider the 'safest' place to deposit a hefty sum? I'm aware besides NS&I it's just 85k per institution, but which do you feel are the safest? Conversely, which would you not touch with a barge pole?!

Thanks 

eskbanker

To a certain extent it depends on what your expectations are with regard to access to your money - the FSCS protection should return your money within seven days of an institution failing anyway, but it wouldn't do any harm to have at least some readily-accessible money in a large well-known high street name but the rest wherever it pays the best interest, however obscure the provider may be.

Albermarle

ChilliBob said:

Guys, 
Besides NS&I where else would you consider the 'safest' place to deposit a hefty sum? I'm aware besides NS&I it's just 85k per institution, but which do you feel are the safest? Conversely, which would you not touch with a barge pole?!

Thanks 

If the savings institution is FSCS protected then it should make no difference . The only problem with a few of the more obscure banks is the customer service is not brilliant , but some are fine.
In fact the institution that currently gets the most flak for poor service is NS&I ………..

ChilliBob

Ah, hmm, I was intending on putting quite a large amount in NS&I becuasue of the protection, then using other banks too, but keen to choose reliable ones!

MaxiRobriguez

A Swiss vault is probably your best bet, but for something closer to home you could push into premium bonds as an alternative to a savings account.

Consider if you haven't already that "safe" doesn't just mean "money doesn't go down" - if you're going to draw down the money over a substantial period (lets say 20 years) then it will be impacted by inflation, and you might therefore want to put at least part of the money in investments that outpace inflation...

ChilliBob

100% some of the funds will be invested but I need time to decide where and how and to carry out proper due diligence. In the meantime I just want somewhere safe to stash it. Seems NS&I and a combinsof high street banks is the answer really

Alexland

ChilliBob said:

Ah, hmm, I was intending on putting quite a large amount in NS&I becuasue of the protection, then using other banks too, but keen to choose reliable ones!

As above your money is very safe (but not from inflation) with NS&I but their customer service is currently awful so I wouldn't count on it being accessible when you need it (although it might be) as if you have unexpected withdrawal problems it may take time to resolve.

I would consider holding some emergency money with the same bank(s) you hold current accounts (although be aware of their right to offset) and for anything bigger then building societies tend to be more stable and better capitalised than banks.

https://www.bsa.org.uk/information/consumer-factsheets/the-difference/stability

Thrugelmir

As long as the entity is a licenced and regulated deposit taker then you've no issues. 

ChilliBob

Interesting, so you're saying Yorkshire BS on a likely to be a safer bet than household names like Barclays or Natawest? 

Alexland

ChilliBob said:

Interesting, so you're saying Yorkshire BS on a likely to be a safer bet than household names like Barclays or Natawest? 

I can't comment on particular institutions (but you can do your own searching for recent capital disclosure statements) but the data suggests that overall building societies are safer but your savings would be FSCS covered either way.

ChilliBob

Thanks. Linked to this does anyone know the qualification for life event in terms of the £1mn coverage for 12 months? Basically I have been made redundant and have to sell shares I own in the company, for which I'll get a lump sum I need to tell them to deposit somewhere. I guess NS&I and just other building society and bank accounts I have at least heard of!