Savings Greater Than FSCS Limit

Shylock_249

Currently I have savings in eight different banks/building societies, four of which I’m either just above (9k) or on the border of the FSCS of £85k, some will go over the limit when interest is paid in the next financial year. A total of 14 accounts in all. I’ve made maximum use of ISAs. My wife’s savings are the same.

I’m trying to keep the number of banks/building societies to a minimum but at the same time attempting to get high rates of interest.

My named banks/building societies are: Aldermore, Charter, Kent Reliance, Families/Nat Counties, Principality, Yorkshire BS, Shawbrook and Virgin.

Would posters advise me, that if in the same situation as me, which of the above would they happily save much more than the FSCS limit of £85k and those which they might NOT and reasons given.

I’ve found Charter to be the easiest to use online, Principality the most difficult/intransigent. I'm going to scrap Principality when the fixed period ends in 2025.

Pity the FSCS limit doesn’t increase each year in line with inflation! 😒

TIA

 

 

 

 

friolento

I would not keep more than £85k in any of the companies you listed, or in any bank or BS at all.

35har1old

Shylock_249 said:

Currently I have savings in eight different banks/building societies, four of which I’m either just above (9k) or on the border of the FSCS of £85k, some will go over the limit when interest is paid in the next financial year. A total of 14 accounts in all. I’ve made maximum use of ISAs. My wife’s savings are the same.

I’m trying to keep the number of banks/building societies to a minimum but at the same time attempting to get high rates of interest.

My named banks/building societies are: Aldermore, Charter, Kent Reliance, Families/Nat Counties, Principality, Yorkshire BS, Shawbrook and Virgin.

Would posters advise me, that if in the same situation as me, which of the above would they happily save much more than the FSCS limit of £85k and those which they might NOT and reasons given.

I’ve found Charter to be the easiest to use online, Principality the most difficult/intransigent. I'm going to scrap Principality when the fixed period ends in 2025.

Pity the FSCS limit doesn’t increase each year in line with inflation! 😒

TIA

 

 

 

 

Is it 9k or 90k?
If its 9k you are NOT near the individual limit of £85000 for any Bank are Building Society  there's no reason to scrap any.
I don't think any of the above are linked not like Lloyds BOS Halifax  and Nat West RBS Ulster 

Rodders53

14 accounts with circa £85k in each.  That's £1.2 Million!
Plus your wife also??
In cash??

You need professional financial advice. Urgently.  (Plus good Wills and IHT planning)

Shylock_249

35har1old said:

Shylock_249 said:

Currently I have savings in eight different banks/building societies, four of which I’m either just above (9k) or on the border of the FSCS of £85k, some will go over the limit when interest is paid in the next financial year. A total of 14 accounts in all. I’ve made maximum use of ISAs. My wife’s savings are the same.

 

As you are NOT near the individual limit of £85000 there's no reason to scrap any

Perhaps you misread my first paragraph? I have 4 which are either above or on the border line (one 9k above, 1 at 1k above and 2 at 84.5k, the last two will go over the limit in fy 2024/2025 when interest is added. Thanks

Shylock_249

Rodders53 said:

14 accounts with circa £85k in each.  That's £1.2 Million!
Plus your wife also??
In cash??

You need professional financial advice. Urgently.  (Plus good Wills and IHT planning)

Not quite, probably my wording. 8 banks, 14 accounts between them, ie I have more than one ISA in some, an instant savings and fixed in others etc. My Cash 577k, (unit trust ISA 63k), wife more of less same cash, higher unit trust ISA and shares, in total between us 1.3 million.

We made wills last year. I don't know how we can plan for IHT is asmuch as we have no children so we can't gift the house (if I'm correct). And again if I'm correct if I go first the wife has a right to everything. She will get assistant from our solicitor, if she goes first I'll try and sort it out. Thanks.

Albermarle

We made wills last year. I don't know how we can plan for IHT is asmuch as we have no children so we can't gift the house (if I'm correct). And again if I'm correct if I go first the wife has a right to everything. She will get assistant from our solicitor, if she goes first I'll try and sort it out. Thanks.

You can not just gift your house, whether you have children or not. Especially if you still live there.

If you have children you can benefit from paying less IHT, if you leave them the house in your will.

Although there are quite a lot of well off people inhabiting this forum, I do not think I have ever come across a couple  who have so much in cash savings, compared to how much they have in investments. Unless maybe you have some large invested pension pots as well.

Regarding your initial question, it is very unlikely that any mainstream bank or savings provider will go under.

Even if a smaller bank got into trouble the BofE would 'persuade' a bigger bank to take them over. So the risk of holding a few £K over the £85K is minimal. However many posters on here will not take that risk, so its down to personal choice.

wmb194

Given that it might soon be owned by Nationwide, I wouldn't worry about Virgin Money. The others I would as they're relatively small and not systemically important so less likely to be bailed out if they get into trouble.

What's your aim? Is it to earn the best interest rate(s) or is it to keep it insured with the minimum hassle and worry?

If it's minimum hassle and worry you could put the whole lot in an NS&I account and have it fully backed by the Treasury. You'd need a brokerage account but another option would be to buy individual gilts. Personally, I also wouldn't worry about going over the FSCS limit with systemically important banks like Barclays, HSBC, NatWest and Lloyds Banking Group.

Keep_pedalling

I would suggest you should move out of accumulating and move to the start spending it phase. You can’t take it with you and I am sure who ever inherits your estate won’t hesitate to have a good time with their unearned windfall. 

d63

wmb194 said:

Given that it might soon be owned by Nationwide, I wouldn't worry about Virgin Money. The others I would as they're relatively small and not systemically important so less likely to be bailed out if they get into trouble.

What's your aim? Is it to earn the best interest rate(s) or is it to keep it insured with the minimum hassle and worry?

If it's minimum hassle and worry you could put the whole lot in an NS&I account and have it fully backed by the Treasury. You'd need a brokerage account but another option would be to buy individual gilts. Personally, I also wouldn't worry about going over the FSCS limit with systemically important banks like Barclays, HSBC, NatWest and Lloyds Banking Group.

not too sure what counts as being systemically important, but asset-wise at least wikipedia currently has the Yorkshire BS amongst the top 3 building societies in the UK :
https://en.wikipedia.org/wiki/Building_society

jaceyboy

NS&I is the way to go imo, full protection, maybe not the best interest rate but piece of mind at an older age and just one account instead of 14?