Best option of keeping cash over of 85K getting best easy interest?

RogerPensionGuy

Due to money events, looks like I may need to keep open difference bank accounts with no more that 85K due the compensation rules.

I see NS&I only paying 3.65%

However various other banks are paying 5% ish.

Opening up multiple different bank accounts just seems so much hassle. 

I was aware there is the ability to just use one service that puts money in to different banks reference the 85K limit. 

I see Hargreaves Landsdown have one of these accounts.

Can anyone advise if the HL service is good, plus nice and simple to use?

Or is there a better service than HL?

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https://www.hl.co.uk/savings/savings-account

Bridlington1

First of all what was the source of the money and when was it received? You could be eligible for the temporary high balance protection under the FSCS. For further details see:
https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/

I'd say it's advisable to spread your money between multiple providers regardless of the FSCS though. If the bank/building society you keep your money in suffers technical issues/freezes your account etc when you want to access some of the funds it could create far more inconvenience for you if all your money is in one place than the very minor ``inconvenience" of spending a few minutes opening and funding a secondary account somewhere else.

As to where to put the money it depends when you'll need to access it. If you'll be needing it shortly I'd just put it in the top paying easy access account(s) you can find. See:
https://moneyfactscompare.co.uk/savings-accounts/easy-access-savings-accounts/?quick-links-first=false

Alternatively if you won't be needing it for a while you could put some of it in fixes. See:
https://moneyfactscompare.co.uk/savings-accounts/fixed-rate-bonds/?quick-links-first=false

Depending on your tax status you might want to consider sticking £20k of the money into an ISA whilst you're at it.

RogerPensionGuy

Bridlington1 said:

First of all what was the source of the money and when was it received? You could be eligible for the temporary high balance protection under the FSCS. For further details see:
https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/

I'd say it's advisable to spread your money between multiple providers regardless of the FSCS though. If the bank/building society you keep your money in suffers technical issues/freezes your account etc when you want to access some of the funds it could create far more inconvenience for you if all your money is in one place than the very minor ``inconvenience" of spending a few minutes opening and funding a secondary account somewhere else.

As to where to put the money it depends when you'll need to access it. If you'll be needing it shortly I'd just put it in the top paying easy access account(s) you can find. See:
https://moneyfactscompare.co.uk/savings-accounts/easy-access-savings-accounts/?quick-links-first=false

Alternatively if you won't be needing it for a while you could put some of it in fixes. See:
https://moneyfactscompare.co.uk/savings-accounts/fixed-rate-bonds/?quick-links-first=false

Depending on your tax status you might want to consider sticking £20k of the money into an ISA whilst you're at it.

Thanks for such a great post. 

Cash is from a variety of sources and I'm aware there are a few rules like house sale, pension payouts that get protection for 6 month I though. 

I currently have various accounts under 85K and any above held in NSI e-saver and 50K premium bonds. 

But, I'm just to receive a DB TFLS lump of cash and this means opening up more accounts to keep balances less than 85K.

Yes, I'm a bit lazy and I feel having individual contact with many many institutions has its own possible hassles, I agree having 2 or 3 cash vehicles are good for when we get big system issues and I'm sure these will become more common. 

ISAs are full for information. 

I just like the lazy idea of using that HL product or similar to keep that essential 85K protection, the HL account above looks simple. 

With a DB pension now in payment and current interest rates I'm back in the 40% income tax due cash, so my view is if I'm paying 40% I should maximise cash interest to get the best personal net income.

I'm unsure how soon I need the cash, if house prices drop a bit more, I may a bit reluctantly buy a BTL and just accept the hassle.

I'm also lucky enough to have a good DB pension that I don't actually need with my current lifestyle, so again, if I start draining that, straight to 40% income tax. 

I'm well aware of tail wagging the dog reference tax, I think that's under control mostly.

I'm just trying to find a sweet low hassle spot to sit on. 

For information, I have and still concidering purchased annuities. 

Also thinking normal annuities from the DB pot, strangely IFAs can't get me a better deal than me just getting a bog standard annuity.

I'll keep reading up and thinking. 

Cheers Roger. 

ColdIron

RogerPensionGuy said:

Can anyone advise if the HL service is good, plus nice and simple to use?

HL Active Savings is worth considering if you value ease of use over the very top rates. Some of the best rate payers aren't always the easiest to deal with (though for fixed rates there isn't much to do once the account is open) and you can be continually establishing new relationships with new banks. Active savings solves that and you only deal with HL who are pretty efficient

There are 2 dates to be aware of: Apply By and Start. Apply By is when the offer ends, offers can be withdrawn early. The start date is when your money is moved along with everyone else's to the provider in a single batch transaction, your money earns no interest until the Start Date

It pretty much does what it says on the tin and is very easy to use. Your choice

poseidon1

RogerPensionGuy said:

Bridlington1 said:

First of all what was the source of the money and when was it received? You could be eligible for the temporary high balance protection under the FSCS. For further details see:
https://www.fscs.org.uk/making-a-claim/claims-process/temporary-high-balances/

I'd say it's advisable to spread your money between multiple providers regardless of the FSCS though. If the bank/building society you keep your money in suffers technical issues/freezes your account etc when you want to access some of the funds it could create far more inconvenience for you if all your money is in one place than the very minor ``inconvenience" of spending a few minutes opening and funding a secondary account somewhere else.

As to where to put the money it depends when you'll need to access it. If you'll be needing it shortly I'd just put it in the top paying easy access account(s) you can find. See:
https://moneyfactscompare.co.uk/savings-accounts/easy-access-savings-accounts/?quick-links-first=false

Alternatively if you won't be needing it for a while you could put some of it in fixes. See:
https://moneyfactscompare.co.uk/savings-accounts/fixed-rate-bonds/?quick-links-first=false

Depending on your tax status you might want to consider sticking £20k of the money into an ISA whilst you're at it.

Thanks for such a great post. 

Cash is from a variety of sources and I'm aware there are a few rules like house sale, pension payouts that get protection for 6 month I though. 

I currently have various accounts under 85K and any above held in NSI e-saver and 50K premium bonds. 

But, I'm just to receive a DB TFLS lump of cash and this means opening up more accounts to keep balances less than 85K.

Yes, I'm a bit lazy and I feel having individual contact with many many institutions has its own possible hassles, I agree having 2 or 3 cash vehicles are good for when we get big system issues and I'm sure these will become more common. 

ISAs are full for information. 

I just like the lazy idea of using that HL product or similar to keep that essential 85K protection, the HL account above looks simple. 

With a DB pension now in payment and current interest rates I'm back in the 40% income tax due cash, so my view is if I'm paying 40% I should maximise cash interest to get the best personal net income.

I'm unsure how soon I need the cash, if house prices drop a bit more, I may a bit reluctantly buy a BTL and just accept the hassle.

I'm also lucky enough to have a good DB pension that I don't actually need with my current lifestyle, so again, if I start draining that, straight to 40% income tax. 

I'm well aware of tail wagging the dog reference tax, I think that's under control mostly.

I'm just trying to find a sweet low hassle spot to sit on. 

For information, I have and still concidering purchased annuities. 

Also thinking normal annuities from the DB pot, strangely IFAs can't get me a better deal than me just getting a bog standard annuity.

I'll keep reading up and thinking. 

Cheers Roger. 

You mention being a bit lazy, the HL service does require you make your own decisions with regard to the various instant access, notice and fixed accounts they provide a portal to, and you need to keep on top of switching within their service as rates falls or fixed periods expire.

That said they do offer email alerts and updates, but you do have to put the effort in to ensure you don't get marooned on a product that eventually ceases to be competitive. However, probably still more convenient than dealing with 3 or 4 savings institutions direct, with all that entails by way of separate logins, income payment instructions  etc.

Also worth noting HL now offers an equivalent cash isa service, although the rates are adequate rather than market leading.

friolento

Essentially, what you get with the HL or similar service is a single logon to a number of savings accounts, from a range of providers.You still have to decide which providers you go with, and you still have to manage the amount you keep with each provider yourself.There is no "£85k magic" the HL or similar will provide.

Shifting money from one provider to another is possibly easier on the HL/similar platform than if you have to move money yourself from one savings provider to another as doing it yourself involves channeling your money via a current account. But it could be faster if you do it yourself. In my experience, it will definitely be faster doing it yourself than doing it with Raisin, one of the companies providing a similar service to HL Active Savings. I have only ever used HL for one account (with Coventry) and deposits and withdrawals were definitely much slower than my direct dealings with Coventry.

The price you have to pay for the single logon is that you have a limited range of providers, and that most of the offers don't have market leading interest rates. Up to you to determine whether the convenience is worth it for you.

Beddie

Other options I'd consider, in addition to the good suggestions above:

Use a very strong institution such as Nationwide to keep a higher balance, they aren't going anywhere. Are their rates any good though? Probably not.
Use a short term money market fund - very low risk but not no risk. Keep as much as you like in there and get over 5% currently.

But then I am not you and we all have our own ideas about what feels comfortable!

Albermarle

There has been mention on other threads that HL active savings, Raisin etc do not report your interest to HMRC, and neither do the savings providers that you have your money with, due to the involvement of HL as an intermediary.
If this is true and it has not been recently resolved, then anybody using these services will have to report interest gained directly to HMRC.
In reality most will have no idea, and will have a big mess/bill further down the line.

ColdIron

I received my Consolidated Tax Certificate yesterday and the AS interest was included along with UK and overseas dividends and interest and a few pennies interest on cash. I asked HL that very question yesterday and they say they don't automatically send it to HMRC

friolento

ColdIron said:

I received my Consolidated Tax Certificate yesterday and the AS interest was included along with UK and overseas dividends and interest and a few pennies interest on cash. I asked HL that very question yesterday and they say they don't automatically send it to HMRC

Sounds as if they are heading for a rather large fine for enabling a tax evasion system

RogerPensionGuy

Albermarle said:

There has been mention on other threads that HL active savings, Raisin etc do not report your interest to HMRC, and neither do the savings providers that you have your money with, due to the involvement of HL as an intermediary.
If this is true and it has not been recently resolved, then anybody using these services will have to report interest gained directly to HMRC.
In reality most will have no idea, and will have a big mess/bill further down the line.

Yes, looking like a big big mess down the road, yet another system not well thought out.

In my opinion these interest savings accounts should have the ability to pay tax at source, but I guess because they made a £500 or 1K tax free allowance, now it's not simple.

I have been looking at various options, another point I have picked up, I may rather get interest monthly rather that at term end, if I was to pick a few 2 or 3 year offerings and get interest in one lump, I would get clobbered well with 40% income tax, so I will be mindful of trying to stage interest payments to pay 20% mostly and just 40% on the over spill.

Everyone says HL is simple and nice to use, yes I will have to tinker a bit on HL to trim/place cash in best options for me.

For all the good reasons, I am finding poking cash about between various institutions is mostly hassle and they keep TXFR limits and methods all a bit different.

Two friends are using Insignis as an all in one savings place and their IFAs told them Insignis is better than all others in this field, I do wonder for who there are better, maybe I can find an all in one savings comparison site?

Tks to all postings on the question I asked, cheers Roger,

A couple of links below for interest......

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https://www.flagstoneim.com/?utm_source=google&utm_medium=cpc&utm_campaign=Search_HNW-Postcodes-Savings-Interest-Broad_Individual&utm_content=AG-Savings-PlatformKWD-savings-platformMT-broad&gad_source=1&gclid=Cj0KCQjw_qexBhCoARIsAFgBlevY6ZP44UOOmxLzhcIQfvJGjZHvyBVnfpqA4EIa4K19RIH3I9kAsWwaAow9EALw_wcB
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https://www.insigniscash.com/personal-savings/

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https://www.hl.co.uk/savings/savings-account?theSource=PCHLC&Override=1&adg=G+HLAS+E+RATE&gad_source=1&gclid=Cj0KCQjw_qexBhCoARIsAFgBletW11FU_BE4YthxFmduHkaG9iQ8SmURwH3z8ljC2h_iQ37iM0ZL7bkaAk7VEALw_wcB