I've got £100,000 cash savings in my current account | Is Skipton Base-rate Savings the 1# choice?

Anonymous868

I've got just over £100,000 cash savings | Which for the past few years I've just left sat in my Barclays current-account (0% interest).

*I always thought/was under the impression that the maximum-limit interest was paid on was £1,000 - £2,500 (so would equal literally pennies per month) | Thus never bothered looking for today, when I saw an MSE email in my junk mail.

I've subsequently researched into it though, and seen that a few places offer 5%+ (on balances upto £1million!)

Thus my 100k = £430 net profit per every single month :: For doing literally nothing / Plus risk-free?!?

It appears to be a choice between:

• Paragon | 5.16% interest (but can only withdraw 2x per year / Plus the rate could be lowered by them)
  (https://www.paragonbank.co.uk/savings/double-access-account)
  
  vs
  
  
• Skipton | 5.06 interest (Unlimited withdrawals if I wanted / Plus they cannot lower the rate themselves, as it's locked to the BoE rate)
  (https://www.skipton.co.uk/savings/easy-access/base-rate-tracker)
  

In terms of my personal lifestyle & spending-requirements:

This 100k is just gonna be used towards getting a mortgage (most likely in 9-12 months time).

Ideally I want to save up a further 40-50k | Thus would only need to borrow 30-40k as my mortgage.

I've got a full-time job already, thus my income from that covers all my day-to-day living costs;

Thus the only time I would realistically need to touch the 100k in this account will be for my mortgage (towards Autumn 2024 at earliest).

I am currently leaning towards the Skipton account, as whilst it's £10 less profit per month on 100k balance, it is locked to the BoE rate for 2-years / (Wheras Paragon could just reduce their rate if they choose).


But I just wondered if there are any hidden dangers with the Skipton account that I'm overlooking, please?

p00hsticks

Apart from anything else, it;s not recommended for you to keep more than £85,000 with any individual banking group. as this is the upper limit of the FSCS protection guarantee
See how FSCS protects banks and building societies | FSCS

Mark_d

Why would you keep £100k in a current account?  Aside from the lack of interest, FSCS protection might only cover for £85 of the bank failed.

If I had £100k cash and wanted to use it for a house purchase in 9-12 months time, then I would keep some in a high interest current account (I use Kroo) and the rest in instant access savings accounts with different banks (paying at lest 4%).  For the savings accounts I'd also be considering what ISAs are available.

Anonymous868

Tbh I very much doubted Barclays Bank will be allowed to go bankrupt by the government.
(Although yes, I am aware that the additional 15k/or whatever over 85k would be at risk in that doomsday scenario)

I have always used Barclays Bank as my main debit-card account, and so tbh I just liked being able to go to a cash-point and seeing 100k+ sat in my account.


I have today discovered about accounts not being limited to paying interest on £1,000 max balances though...
Thus realized how much free profit I can earn monthly from a high-interest account.

Bigwheels1111

First hit yourself on the head with a hammer and see if it clears things up.

A loss of £800 for two months, you said a few ie more than one.

Get your head in gear.

Pull your finger out.

Best rates for easy access today.

Select rate order.

https://moneyfactscompare.co.uk/savings-accounts/easy-access-savings-accounts/?quick-links-first=false

Best part of a grand flushed down the loo.

Only thing to bear in mind is Tax and Limit of daily withdrawals.

So have a 20k a day limit and before 13.00pm etc.

eskbanker

Mark_d said:

Why would you keep £100k in a current account?  Aside from the lack of interest, FSCS protection might only cover for £85 of the bank failed.

Ouch!  Imagine potentially losing £99,915 of your money....

Middle_of_the_Road

You should be aiming to earn min. 5% on your cash deposits. The Skipton base rate tracker would be a safe bet, but you can get more if you're happy to go with other less established banks. Metro are top ATM at 5.22% and Ulster bank 5,2%. You can get more by using a notice account, which could work out well with your timescale for the house deposit. I've user Hampshire Trust Bank and would recommend them. 

Best savings accounts: 5.22% easy access or 5.8% fixed rates (moneysavingexpert.com)

ColdIron

£100,000 in a current account at 0% is bonkers

Given the FSCS threshold why not split it between the two?

Your interest is certain to be taxed so look at £20,000 in an ISA, and again next April

https://moneyfactscompare.co.uk/isa/easy-access-cash-isas/?quick-links-first=false

[Deleted User]

Hi,

Anonymous868 said:
I have always used Barclays Bank as my main debit-card account, and so tbh I just liked being able to go to a cash-point and seeing 100k+ sat in my account,

must look nice, but costing about £5k a year in lost interest.

Albermarle

I've got just over £100,000 cash savings | Which for the past few years I've just left sat in my Barclays current-account (0% interest

As this a savings forum, where people swap accounts to gain 0.1% extra interest, there should be warning before being able to read such statements. So we could at least sit down first !

allegro120

Anonymous868 said:

I've got just over £100,000 cash savings | Which for the past few years I've just left sat in my Barclays current-account (0% interest).

*I always thought/was under the impression that the maximum-limit interest was paid on was £1,000 - £2,500 (so would equal literally pennies per month) | Thus never bothered looking for today, when I saw an MSE email in my junk mail.

I've subsequently researched into it though, and seen that a few places offer 5%+ (on balances upto £1million!)

Thus my 100k = £430 net profit per every single month :: For doing literally nothing / Plus risk-free?!?

It appears to be a choice between:

• Paragon | 5.16% interest (but can only withdraw 2x per year / Plus the rate could be lowered by them)
  (https://www.paragonbank.co.uk/savings/double-access-account)
  
  vs
  
  
• Skipton | 5.06 interest (Unlimited withdrawals if I wanted / Plus they cannot lower the rate themselves, as it's locked to the BoE rate)
  (https://www.skipton.co.uk/savings/easy-access/base-rate-tracker)
  

In terms of my personal lifestyle & spending-requirements:

This 100k is just gonna be used towards getting a mortgage (most likely in 9-12 months time).

Ideally I want to save up a further 40-50k | Thus would only need to borrow 30-40k as my mortgage.

I've got a full-time job already, thus my income from that covers all my day-to-day living costs;

Thus the only time I would realistically need to touch the 100k in this account will be for my mortgage (towards Autumn 2024 at earliest).

I am currently leaning towards the Skipton account, as whilst it's £10 less profit per month on 100k balance, it is locked to the BoE rate for 2-years / (Wheras Paragon could just reduce their rate if they choose).


But I just wondered if there are any hidden dangers with the Skipton account that I'm overlooking, please?

There are no hidden dangers with the Skipton. You could split your funds between Skipton and Paragon in order to stay within £85k FSCS protection limit.