How much do you keep in readily access savings/cash access?

st182

Does anyone else have an opinion on using a potential redundancy severance payout as part of their emergency planning?

I work for a large company with medium service (24 years) and with current terms and conditions, I would be due to receive a set payout of so many weeks pay per complete service year. Would it be naive of me to rely on this in case of redundancy? Any thoughts appreciated.

MEM62

st182 said:

Does anyone else have an opinion on using a potential redundancy severance payout as part of their emergency planning?

I work for a large company with medium service (24 years) and with current terms and conditions, I would be due to receive a set payout of so many weeks pay per complete service year. Would it be naive of me to rely on this in case of redundancy? Any thoughts appreciated.

There are many ways other than redundancy of becoming unemployed.  Relying on that single mechanism for security would not be wise.  

st182

MEM62 said:

st182 said:

Does anyone else have an opinion on using a potential redundancy severance payout as part of their emergency planning?

I work for a large company with medium service (24 years) and with current terms and conditions, I would be due to receive a set payout of so many weeks pay per complete service year. Would it be naive of me to rely on this in case of redundancy? Any thoughts appreciated.

There are many ways other than redundancy of becoming unemployed.  Relying on that single mechanism for security would not be wise.  

Thanks MEM, good point well made, much appreciated  I'll carry on building my emergency fund as planned

MDMD

st182 said:

Does anyone else have an opinion on using a potential redundancy severance payout as part of their emergency planning?

I work for a large company with medium service (24 years) and with current terms and conditions, I would be due to receive a set payout of so many weeks pay per complete service year. Would it be naive of me to rely on this in case of redundancy? Any thoughts appreciated.

Also check the terms carefully- the company I work for has no contractual policy at all and so the only thing reasonably certain is the statutory amount of £500 per week. It’s become relevant for me as I’m expecting to be made redundant in 6-12 months.  

To answer the original question I have £100k in the bank as I need £80k of it for a house completion deposit in a few months. 

Mothman

Retired and have a cash buffer of £70k (approx 10% of portfolio) which would cover around 4yrs of income requirement (subject to inflation).

The_Green_Hornet

Type_45 said:

Cash is king.

The king is dead long live the king.

MrFrugalFever

I am genuinely shocked at reading this thread, especially when some posters have clearly been forum members for quite some time.

Bring back your focus to MSE…on what planet does holding large sums of money in a current account (which invariably almost always pays ZERO interest) as opposed to an INSTANT access savings account make sense?

The mind boggles.

Even if it was an account that operates on a next business day or even worse, 3 business days, I’d be either planning for that ahead of the spend or utilise a credit card for immediate purchase then utilise the savings to pay back.
Choose your instant access wisely and even a large bill which cannot be paid via CC could be paid within 20 mins of transfer of funds generally. (Tandem for example).