FSCS limit

SJE89

What do people find to be the best way of apportioning savings between banks?
i currently have over the limit for the FSCS if my bank were to go bust. 

I have 2 current accounts in one bank. One from which my direct debits and standing orders come from so that I pay in a set figure each month and a set figure is taken to the penny. 

I find this to be the best way to manage my bills and ensure I never overspend. 

The rest of my monthly income goes into a second current account with the same bank and I do the shopping from that one. Whatever is left at the end of the month gets moved into two savings accounts (a digital with higher interest with a £150 monthly limit and the rest into a regular saver. This one is above the limit for FSCS so should I be looking to split it to another separate financial institution also backed by FSCS?
and should I also have another current account with them just in case which may also help with eligibility to other better products that that bank may offer?

refluxer

Yes, it's obviously a good idea to stay under the FSCS limit for each institution so it'll make sense to open an additional savings account in order to achieve that. There's no need to open a current account alongside it although, at the moment, it's true that both Virgin and Chase offer easy access savings accounts with the best rates and do require an accompanying current account. Note that Zopa have recently matched Chase's rate of 1.5% and don't require you to open a current account.

If you don't need easy access to the money, then you'll generally get better rates by locking your money away in notice or Fixed Rate accounts, although rates are rising at the moment so the rates on those are steadily increasing week by week.

Albermarle

Many of the best savings accounts, especially fixed term ones, are with smaller banks that do not even offer current accounts.
You should maybe be looking at some of those for savings. They are all covered with FSCS £85K .

Compare The Best UK Savings Accounts | moneyfacts.co.uk

eskbanker

SJE89 said:

i currently have over the limit for the FSCS if my bank were to go bust.

Do you need to be holding over £85K in cash deposit form?  It'll be losing real terms value to inflation and, unless you have an identifiable need to access it within the next few years, it would probably be worth considering investing at least some of it....