Reaching 85k savings limit. What to do?

Bod_1234

Looking for some advice on options.

All by banking is with a sole UK provider, Nationwide, for which I have a current account, a savings account and a CashISA.   The total of all 3 of these is approaching the 85k limit, so I am aware I getting close to the limit on Financial Services Compensation Scheme.

I'm not really sure what to do at this point, the lazy option is to just open another savings account with someone else, but figure there must better options.  

I'm 55, don't have a mortgage (paid of a decade ago), don't have dependants either, and have a decent amount of disposible income every month (about £2,500)  I don't really want to any more into a pension, I already pay a decent amount in, for something that I might never be around to draw on.

I do a bit of small time trading on Freetrade, a few thousand a year, nothing huge, and I don't currently pay for their Pro offering (£10/month seems too high).

I've never taken the services of a proper IFA, perhaps I should?  What sort of price would a "IFA HealthCheck" cost me, and what would I typically get for that?

To fix the immediate issue, I opened a Premium Bonds account and put 3k in there, that gets me below the limit, and I will start diverting money there as a head back up to it in future.

Any other options?

lozzy1965

Premium Bonds offer one of the best 'safe' returns (on average) at the moment.  Look at the returns you are currently getting, you may find PB's better than your other accounts?  If so, you could put the 50K limit in there and let your Nationwide accounts build up again.

thegentleway

Premium bonds are good option at the moment. It’s not clear what you are saving for but another option would be to donate surplus savings to worthy causes. 

Bobziz

Is the £85k limit really an issue ? If NW go belly up then aren't we all in trouble. 

lozzy1965

Bobziz said:

Is the £85k limit really an issue ? If NW go belly up then aren't we all in trouble. 

Yes it is an issue.  No we aren't all in trouble if there is something fundamentally wrong with NW they will go bust and the world will continue, just like if any other individual company went bust.

eskbanker

Bod_1234 said:

I'm 55, don't have a mortgage (paid of a decade ago), don't have dependants either, and have a decent amount of disposible income every month (about £2,500)  I don't really want to any more into a pension, I already pay a decent amount in, for something that I might never be around to draw on.

As you're 55, anything you pay into a pension is now accessible to you - a workplace pension might have restrictions on early access but easily avoided via a personal pension that you control.  Alternatively, investing some of it in an S&S ISA rather than holding everything in cash deposit form (where it'll lose real-terms value to inflation) should generate better long term returns, but much depends on when you anticipate using the money - you presumably don't need all of it to be readily accessible all of the time?

Bobziz

lozzy1965 said:

Bobziz said:

Is the £85k limit really an issue ? If NW go belly up then aren't we all in trouble. 

Yes it is an issue.  No we aren't all in trouble if there is something fundamentally wrong with NW they will go bust and the world will continue, just like if any other individual company went bust.

The biggest building society in the world with nearly £250b in assets and over 15 million members. A good credit rating, a financial health status better than most and a conservative bussiness approach which has served it well over the last 150 years.
Never say never and each to their own, but I sleep well at night with well over the £85k limit with them.

eskbanker

Bobziz said:
I sleep well at night with well over the £85k limit with them.

But why take the risk at all when it's so easily mitigated?

Bobziz

For me unfortunately it's not so easily mitigated.

lozzy1965

Bobziz said:

lozzy1965 said:

Bobziz said:

Is the £85k limit really an issue ? If NW go belly up then aren't we all in trouble. 

Yes it is an issue.  No we aren't all in trouble if there is something fundamentally wrong with NW they will go bust and the world will continue, just like if any other individual company went bust.

The biggest building society in the world with nearly £250b in assets and over 15 million members. A good credit rating, a financial health status better than most and a conservative bussiness approach which has served it well over the last 150 years.
Never say never and each to their own, but I sleep well at night with well over the £85k limit with them.

I agree, it's not a big risk and I wouldn't lose any sleep with over 85K with them, but as eskbanker says, why take an easily mitigated risk?
There have been quite a few 'well run' companies that were well run right up to the point they were 'found out'.  It just takes a change of management to change a company's approach.

Albermarle

I've never taken the services of a proper IFA, perhaps I should?  What sort of price would a "IFA HealthCheck" cost me, and what would I typically get for that?

Although an IFA can give you advice on many things they tend to be focused on investments and pensions , rather than cash savings . They don't really do 'health checks ' The area is highly regulated and basically it is a full personalised advice service or nothing.