Spreading savings over several different accounts

fly-catchers

I would assume it is good practice to keep your savings over a few accounts to avoid any downtime or app issues? Most of mine has been with Zopa or Tandem but just opened a Chip account. My more regular bank accounts rarely have anything in them until shortly before any DD’s go out. If the worse did happen and one of these new (or established banks ) ceased trading. How long would it take to access your money through the FSA £85000 scheme?

Band7

In most cases, the FSCS aims to pay compensation within seven days of a bank, building society or credit union failing. Any remaining deposit claims, which are likely to be more complex, should be paid within 15 working days.

Important to understand that failing means that the firm needs to be formally declared insolvent. This can be some time after you can't any longer get your money out.

allegro120

fly-catchers said:

I would assume it is good practice to keep your savings over a few accounts to avoid any downtime or app issues? Most of mine has been with Zopa or Tandem but just opened a Chip account. My more regular bank accounts rarely have anything in them until shortly before any DD’s go out. If the worse did happen and one of these new (or established banks ) ceased trading. How long would it take to access your money through the FSA £85000 scheme?

It is a good practice.  I wouldn't keep my money in just one single bank/group.

housebuyer143

I have mine spread over 5 for this reason. 

jaypers

I have mine spread across 7 different institutions, plus a couple now with zero balance.

Albermarle

Not just savings but wise to have at least two of everything ( if possible).
Current account
DC pension provider ( especially if drawing from them ) 
S&S ISA 
Savings provider
Credit cards ( one Mastercard, one Visa for example) 

If you have a partner ( where you share financial details) you probably do not both need to duplicate all of the above, as long as you use different providers individually. 

TheBanker

Albermarle said:

Not just savings but wise to have at least two of everything ( if possible).
Current account
DC pension provider ( especially if drawing from them ) 
S&S ISA 
Savings provider
Credit cards ( one Mastercard, one Visa for example) 

If you have a partner ( where you share financial details) you probably do not both need to duplicate all of the above, as long as you use different providers individually. 

I get the logic of two current accounts etc - but why two S&S ISAs? (Genuine question as I only have one). 

I've got multiple current, savings and card accounts so that I can carry on if there's a system fault - but for an S&S ISA I'd just wait until it was fixed. Worse case is a contribution might be delayed slightly. 

Albermarle

TheBanker said:

Albermarle said:

Not just savings but wise to have at least two of everything ( if possible).
Current account
DC pension provider ( especially if drawing from them ) 
S&S ISA 
Savings provider
Credit cards ( one Mastercard, one Visa for example) 

If you have a partner ( where you share financial details) you probably do not both need to duplicate all of the above, as long as you use different providers individually. 

I get the logic of two current accounts etc - but why two S&S ISAs? (Genuine question as I only have one). 

I've got multiple current, savings and card accounts so that I can carry on if there's a system fault - but for an S&S ISA I'd just wait until it was fixed. Worse case is a contribution might be delayed slightly. 

Some people may rely on them, but you are right it is probably the item with the least priority to duplicate.

TheBanker

Albermarle said:

TheBanker said:

Albermarle said:

Not just savings but wise to have at least two of everything ( if possible).
Current account
DC pension provider ( especially if drawing from them ) 
S&S ISA 
Savings provider
Credit cards ( one Mastercard, one Visa for example) 

If you have a partner ( where you share financial details) you probably do not both need to duplicate all of the above, as long as you use different providers individually. 

I get the logic of two current accounts etc - but why two S&S ISAs? (Genuine question as I only have one). 

I've got multiple current, savings and card accounts so that I can carry on if there's a system fault - but for an S&S ISA I'd just wait until it was fixed. Worse case is a contribution might be delayed slightly. 

Some people may rely on them, but you are right it is probably the item with the least priority to duplicate.

Ah I see - I suppose if I was drawing my income from the S&S ISA then having two might make sense. Would have to pick providers carefully though to avoid paying double the fees. 

Albermarle

One way around that issue , is to have S&S ISA and a pension on the same platform. Then maybe another platform with both of them as well.

PloughmansLunch

Albermarle said:

Not just savings but wise to have at least two of everything ( if possible).
Current account
DC pension provider ( especially if drawing from them ) 
S&S ISA 
Savings provider
Credit cards ( one Mastercard, one Visa for example) 

If you have a partner ( where you share financial details) you probably do not both need to duplicate all of the above, as long as you use different providers individually. 

I’m about 25 years away at the mo myself, but when you mention 2x DC pensions - would that be covered by a workplace one plus a SIPP?