Banks

PatF_3

First time I have ever posted.  I have savings and I'd like to get a better rate of interest.  I have never changed Bank because a lot of banks I've never heard of and am very cautious about transferring money even to those banks suggested on MSE.  Can anyone allay my fears? I have been with same bank for 52 years.

kuratowski

Have you read the MSE guide to the financial services compensation scheme (FSCS)?

https://www.moneysavingexpert.com/savings/safe-savings/ 

The most important thing is to check out whether the account you're considering is covered by FSCS.  If so, then they are covered by a government-backed guarantee scheme, to stop you from losing your money.

Also if you want to stick to "traditional, bricks and mortar" provider with branches, look for a building society local to you, as they tend to offer better savings rates than the national bank chains.

masonic

Stick to mainstream best buy tables from reputable sites and you won't go wrong. Use the Financial Services Register to check any unfamiliar providers https://register.fca.org.uk/s/ and make sure the details match up (including website address if applying online). Absolutely do not use Facebook or a search engine.

It is sensible to be cautious because there are fraudsters out there trying to part people with their cash, but you can keep yourself safe by taking these simple precautions.

MX5huggy

Premium Bonds are currently a popular option for those with savings. Although there are a few accounts that are starting to appear that will beat “average” luck. 

maxsteam

PatF_3 said:

I have savings and I'd like to get a better rate of interest.

You could end up doing something that you are not comfortable with just to get 1% interest. I agree that it's sensible to avoid organisations that you have never heard of. The situation today, whether you like it or not, is that you either accept a low interest rate or take some risks with some of your capital.

Albermarle

maxsteam said:

PatF_3 said:

I have savings and I'd like to get a better rate of interest.

You could end up doing something that you are not comfortable with just to get 1% interest. I agree that it's sensible to avoid organisations that you have never heard of. The situation today, whether you like it or not, is that you either accept a low interest rate or take some risks with some of your capital.

It is understandable that someone unfamiliar with the savings market may prefer to keep their money with someone  they have heard of . However the main well known banks pay a pitiful rate of interest .
The posts above yours are correct in that that there is NO risk to your money if you save money with an institution listed on MSE comparison site or on this one Compare The Best UK Savings Accounts | moneyfacts.co.uk as they are all covered by a compensation scheme up to £85K.

As already suggested if the OP wants to deal with an institution they are familiar with they can get decent deals at some building societies like Coventry , or with Premium bonds backed by the Government.

If you can tie your money up for 3 years you can get around 1.5 % . Anything much above that would mean getting involved with risk based investments ( not savings accounts)

maxsteam

Albermarle said

 there is NO risk to your money if you save money with an institution listed on MSE comparison site or on this one 

The next bank to fail will be near the top of one of those lists and it will be a bank with an unfamiliar name. This should not be something worth disputing. If you consider the process of claiming money from a failed bank to be straightforward, then you may indeed consider your savings not to be at risk

masonic

maxsteam said:

Albermarle said

 there is NO risk to your money if you save money with an institution listed on MSE comparison site or on this one 

The next bank to fail will be near the top of one of those lists and it will be a bank with an unfamiliar name. This should not be something worth disputing. If you consider the process of claiming money from a failed bank to be straightforward, then you may indeed consider your savings not to be at risk

It will probably be a credit union, as those fail with some regularity. The last time a credit union offered a best buy savings account, it failed after about 6 months due to the wave of cash that hit it.

pip895

I have never changed my main bank and may never bother but they don’t get my savings business.  

The issue with picking a new bank for a batch of savings money is that it’s hassle.  If you want to get the best rates you often have to move between banks quite frequently and use term accounts. You are dealing with a lot of organisations that all like to bombard you with emails and or paper.  

I now use HL’s Active Savings.  They give you access to instant access and term accounts from a number of different banks (all fscs protected)
It takes the hassle out, when a term deposit ends the money just drops straight into whatever instant access account you have nominated and popping it into another term account from there takes seconds.  Obviously they don’t have the whole market but the rates are pretty competitive 0.5% instant access and 1.3% for a one year fix at the moment, though they change quite frequently.  

xylophone

https://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html

might be worth a look.

colsten

pip895 said:

You are dealing with a lot of organisations that all like to bombard you with emails and or paper. 

In my experience, you can choose not to receive Marketing materials, at all providers. I had lots of accounts with all sorts of providers and I don't get an undue amount of emails (not even from HL, the king of spam Marketing), and zero paper as all my accounts are paperless.