Savings Greater Than FSCS Limit

eskbanker

d63 said:

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

But (based on Wikipedia data too) the smallest of those 'big four' banking groups is about twelve times the asset size of Yorkshire BS, so it's not difficult to see where the government's focus would be if there was to be some period of severe financial stress in the industry!

jimjames

Any reason you need so much cash? You mention you already have investments, can they be increased?

wmb194

d63 said:

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

As Eskbanker points out, it's still not big enough and if it went down, as a knock on effect, it wouldn't take many business customers with it. The only building society that might be considered systemic is Nationwide and IIRC during the Financial Crisis* it was being considered as such.

*Which now feels like a lifetime ago...

Wheres_My_Cashback

Personally I wouldn't take too much notice of the £85K limit in isolation and I don't.

It's all down to who you have your money with, You probably have more chance of winning the Lotto than any UK Bank/BS going bust or being allowed to go bust by the UK GOV. Depending on who it is they would probably step in. 

Research the banks carefully where you're likely to exceed the limit.

Do what you're comfortable with according to your risk aversiveness and don't be swayed by forums.

Dizee123

My cash ISA with the Leeds reached 85K last year so I renewed it into a 3 year cash ISA with them as they had good rates at the time, but I have the interest being paid yearly into my current account.  Holiday money, and saves going over the limit.

eskbanker

Wheres_My_Cashback said:

Personally I wouldn't take too much notice of the £85K limit in isolation and I don't.

It's all down to who you have your money with, You probably have more chance of winning the Lotto than any UK Bank/BS going bust or being allowed to go bust by the UK GOV. Depending on who it is they would probably step in. 

Research the banks carefully where you're likely to exceed the limit.

Do what you're comfortable with according to your risk aversiveness and don't be swayed by forums.

OP already recognised that when phrasing their question, asking specifically for opinions about named institutions rather than the principle!

Shylock_249 said:

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.

Wheres_My_Cashback

eskbanker said:

Wheres_My_Cashback said:

Personally I wouldn't take too much notice of the £85K limit in isolation and I don't.

It's all down to who you have your money with, You probably have more chance of winning the Lotto than any UK Bank/BS going bust or being allowed to go bust by the UK GOV. Depending on who it is they would probably step in. 

Research the banks carefully where you're likely to exceed the limit.

Do what you're comfortable with according to your risk aversiveness and don't be swayed by forums.

OP already recognised that when phrasing their question, asking specifically for opinions about named institutions rather than the principle!

Shylock_249 said:

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.

The most important part was the last para.

My opinion compared to others may massively differ from others even when reading the same info, therefore DYOR and stick with your own choices rather than an opinion from others in the same situation.

Shylock_249

Albermarle said:

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.

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.

Thanks, regarding the house, as I wrote we have no children so it won't affect us but I met my brother whom I hadn't seen for 49 years at our mother's funeral a couple of years ago. He said (agreed I don't really listen to him) that he was living in his own house on trust because he had gifted it to his children.

We are both drawing our state pensions, I also receive 2 military pensions and a smallish Civil Service Pension, the wife a sizeable NHS and state pension. My military pension and my wife's NHS pensions are hit and will be further hit next year by HMRC because we have 8.2k each in untaxed interest.

We've been unable to reduce our taxed accounts into ISAs each year because despite putting 40k away in ISAs our taxed accounts are still greater than at the beginning of each FY.

Thanks

Shylock_249

Keep_pedalling said:

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. 

Yes, we were doing that, then the wife had a stroke.................

Shylock_249

jimjames said:

Any reason you need so much cash? You mention you already have investments, can they be increased?

I'm 76!  I really don't want the hassle. I don't trust financial advisors, everyone I've met wants me to transfer my current Unit Trust ISAs to them as an intermediary.  They always seem to want to increase their own wealth at my expense.