Best savings account for sale proceeds of home

WanderingBloke

My brother has sold his house and wants to know where to put the £750k sale proceeds for a few months while he rents and then looks to buy again. He is looking for easy access and prepared to open an account online. Are providers like Aldermore and UBL safe? As it's his only house if the bank went bust would he get his money / sale proceeds back? I hear they have to compensate in such circumstances. Advice welcome, thank you.

csgohan4

the proceeds are protected for 1 year up to 1mil

https://www.fscs.org.uk/how-we-work/claims-process/temporary-high-balances/

Assuming UK bank

Another_Saver

Covered above - obviously go for the highest interest rate account you can get since 0.6% of £750k for 3 months is still £1,125.

But If he wants to feel super safe, doesn't want the hassle of waiting for the FSCS processa after the bank collapses, and doesn't mind a !!!!!! rate he could stick the lot in NS&I, £50k premium bonds and the rest in a Direct Saver account.

cricidmuslibale

Personally I really don't think anyone should put any money into NS&I's Direct Saver account right now and those that have money in it should remove it asap. NS&I should not be 'rewarded' in any way for the massive interest rate cuts to this account and most of its other accounts last Tuesday imho, especially after publicly proclaiming earlier this year that they had decided not to go ahead with previously planned, much more modest interest rate cuts - which in my opinion were entirely reasonable and sensible, and should have taken place as scheduled - in order to 'protect their savers during the uncertain time caused by the coronavirus pandemic'! If this isn't duplicitous and shocking (to its many savers) behaviour by what was previously at least a reliable and consistent state savings provider then I really don't know what is!

NottinghamKnight

cricidmuslibale said:

Personally I really don't think anyone should put any money into NS&I's Direct Saver account right now and those that have money in it should remove it asap. NS&I should not be 'rewarded' in any way for the massive interest rate cuts to this account and most of its other accounts last Tuesday imho, especially after publicly proclaiming earlier this year that they had decided not to go ahead with previously planned, much more modest interest rate cuts - which in my opinion were entirely reasonable and sensible, and should have taken place as scheduled - in order to 'protect their savers during the uncertain time caused by the coronavirus pandemic'! If this isn't duplicitous and shocking (to its many savers) behaviour by what was previously at least a reliable and consistent state savings provider then I really don't know what is!

Well the government as the ultimate owners won;t be penalised by anyone not saving in NSI because large institutions are currently paying them to lend them money, so the less money they have to pay interest on the better. 

Another_Saver

cricidmuslibale said:

Personally I really don't think anyone should put any money into NS&I's Direct Saver account right now and those that have money in it should remove it asap. NS&I should not be 'rewarded' in any way for the massive interest rate cuts to this account and most of its other accounts last Tuesday imho, especially after publicly proclaiming earlier this year that they had decided not to go ahead with previously planned, much more modest interest rate cuts - which in my opinion were entirely reasonable and sensible, and should have taken place as scheduled - in order to 'protect their savers during the uncertain time caused by the coronavirus pandemic'! If this isn't duplicitous and shocking (to its many savers) behaviour by what was previously at least a reliable and consistent state savings provider then I really don't know what is!

So you want the government to borrow more money from the gilt markets or BoE in order to pay NS&I savers, or impose an additional tax burden on the economy to pay them?

cricidmuslibale

NottinghamKnight said:

cricidmuslibale said:

Personally I really don't think anyone should put any money into NS&I's Direct Saver account right now and those that have money in it should remove it asap. NS&I should not be 'rewarded' in any way for the massive interest rate cuts to this account and most of its other accounts last Tuesday imho, especially after publicly proclaiming earlier this year that they had decided not to go ahead with previously planned, much more modest interest rate cuts - which in my opinion were entirely reasonable and sensible, and should have taken place as scheduled - in order to 'protect their savers during the uncertain time caused by the coronavirus pandemic'! If this isn't duplicitous and shocking (to its many savers) behaviour by what was previously at least a reliable and consistent state savings provider then I really don't know what is!

Well the government as the ultimate owners won;t be penalised by anyone not saving in NSI because large institutions are currently paying them to lend them money, so the less money they have to pay interest on the better. 

All that may well be true, in fact it most probably is, but that doesn't change the fact that NS&I's previous reputation as a reliable and consistent, even if somewhat old-fashioned, state savings provider has taken a massive nosedive thanks to its decision to go ahead with all the very severe interest rate slashes last Tuesday, despite the large amount of hugely negative reaction there has been to these very big rate reductions:- a lot of it within the 2 months between when the cuts were announced and when they actually happened!  

cricidmuslibale

Another_Saver said:

cricidmuslibale said:

Personally I really don't think anyone should put any money into NS&I's Direct Saver account right now and those that have money in it should remove it asap. NS&I should not be 'rewarded' in any way for the massive interest rate cuts to this account and most of its other accounts last Tuesday imho, especially after publicly proclaiming earlier this year that they had decided not to go ahead with previously planned, much more modest interest rate cuts - which in my opinion were entirely reasonable and sensible, and should have taken place as scheduled - in order to 'protect their savers during the uncertain time caused by the coronavirus pandemic'! If this isn't duplicitous and shocking (to its many savers) behaviour by what was previously at least a reliable and consistent state savings provider then I really don't know what is!

So you want the government to borrow more money from the gilt markets or BoE in order to pay NS&I savers, or impose an additional tax burden on the economy to pay them?

NS&I should be now be paying their savers either (a) the rates they were going to be paying them had the originally planned rate reductions last spring gone ahead or (b) rates that comprise (a) further modest reduction(s) from the originally planned rate reductions if necessary. This would have been perfectly understandable in the present economic circumstances and would likely have been entirely accepted (albeit grudgingly) by both their longstanding and recently acquired savers!

cricidmuslibale

cricidmuslibale said:

Another_Saver said:

cricidmuslibale said:

Personally I really don't think anyone should put any money into NS&I's Direct Saver account right now and those that have money in it should remove it asap. NS&I should not be 'rewarded' in any way for the massive interest rate cuts to this account and most of its other accounts last Tuesday imho, especially after publicly proclaiming earlier this year that they had decided not to go ahead with previously planned, much more modest interest rate cuts - which in my opinion were entirely reasonable and sensible, and should have taken place as scheduled - in order to 'protect their savers during the uncertain time caused by the coronavirus pandemic'! If this isn't duplicitous and shocking (to its many savers) behaviour by what was previously at least a reliable and consistent state savings provider then I really don't know what is!

So you want the government to borrow more money from the gilt markets or BoE in order to pay NS&I savers, or impose an additional tax burden on the economy to pay them?

NS&I should be now be paying their savers either (a) the rates they were going to be paying them had the originally planned rate reductions last spring gone ahead or (b) rates that comprise (a) further modest reduction(s) from the originally planned rate reductions if necessary. This would have been perfectly understandable in the present economic circumstances and would likely have been entirely accepted (albeit grudgingly) by both their longstanding and recently acquired savers!

Such new 'reasonable rates' (as opposed to the unreasonably low rates of Tuesday 24th Nov onwards) would be paid for exactly the same way as the previous overly-generous rates (in the present climate) for the period up to Monday 23rd Nov were being paid for! Only NS&I knows the source(s) from which it was funding the previously overly-generous rates so I kindly suggest you ask them about that.

cricidmuslibale

I really do feel it is entirely reasonable for me to use the description 'unreasonably low rates' in this context when e.g. NS&I's new Income Bond interest rate is as super low as 0.01% for an account in which you have to maintain a minimum balance of £500 in order for it to remain open!

Another_Saver

Have you complained to NS&I, parliamentary ombudsman, MP, Rishi?