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

IanManc

ColdIron said:

I have never seen a fixed term account with monthly interest. If you open a 2+ year fix some of them pay annually, others on maturity

Moneyfactscompare lists 156 fixed term accounts from numerous providers that pay monthly interest which are available to retail savers today:

https://moneyfactscompare.co.uk/savings-accounts/fixed-rate-bonds/?id=null&business-type=16&activity-type=null&investment-amount=25000&investment-type=1&account-types=1&interest-paid-frequencies=2&terms=null&account-opening-methods=null&account-management-methods=null&notice-periods=null&include-notice-period=true&include-term=true&age=21&has-withdrawal-restrictions=2&existing-customers-only=2&is-shariaa=2&joint-account-only=2

ColdIron

Never seen monthly on HL Active Savings

RogerPensionGuy

IanManc said:

ColdIron said:

I have never seen a fixed term account with monthly interest. If you open a 2+ year fix some of them pay annually, others on maturity

Moneyfactscompare lists 156 fixed term accounts from numerous providers that pay monthly interest which are available to retail savers today:

https://moneyfactscompare.co.uk/savings-accounts/fixed-rate-bonds/?id=null&business-type=16&activity-type=null&investment-amount=25000&investment-type=1&account-types=1&interest-paid-frequencies=2&terms=null&account-opening-methods=null&account-management-methods=null&notice-periods=null&include-notice-period=true&include-term=true&age=21&has-withdrawal-restrictions=2&existing-customers-only=2&is-shariaa=2&joint-account-only=2

That's another great post on here,  thanks. 

poseidon1

RogerPensionGuy said:

I opened up a HL and am happy and frustrated with their security varafication systems, rather they are secure and it feels secure to me.

So I'll probably buy gilts and use the Active Saver. 

The Active Saver looks simple. 

I'll have to investigate and understand how to buy gilts.
***
A quick question to anyone, if I put in X pounds in to a product in their Active Saver today, can I put in more X pounds in to that product tomorrow or next week? 
***
My guess is if it's an instant access account product and it still shows availability, I can just put in more pounds whenever I like. 

However, if product is a term product, lets say it says apply by 10MAY24, I can top up that account if it still shows availability when I look in a few days. 

Or after opening a term product, do I have 7 or 14 days from opening to top up product. 

I tried looking on HL site and was unable to see the exact mechanics of exactly how it works, I was going to plonk a token amount in the various products and then when I see the workings, top up the various products to the required levels I feel appropriate. 

I was poking about for monthly interest and only noticed monthly interest available on instant products, I noticed most longer term accounts pay interest on maturity, so that's not purfect on managing interest payments every year, I did notice a 2 or 3 year term that paid interest annually, so that could be helpful for me. 

Any information on my one *** question *** above would be most helpful and thanks in advance. 

You  mention potentially buying gilts, per link below you have a very short window ( tomorrow deadline ) to participate in the latest gilt auction of 4.125% Treasury stock 2029.  I am not sure if you have to pass HLs sophiscated investor quiz before they let you apply, but this auction allows you to get into a gilt at zero commission, clean price and (maybe ) a small discount to its face value on maturity.

That said,  you may wish to study gilts a bit more before taking the plunge. Unless purchased at or below par and held all the way to maturity, gilts are not necessarily risk free, although readily tradeable. I also invest direct in corporate bonds, so personally satisfied that subject to the stated criteria, gilts are considerably less risky compared to corporate bonds.

https://www.hl.co.uk/shares/ipos-and-new-issues/treasury-2029-gilt-launch?utm_campaign=EOJ85-Gilt-Books-Open-23.04.24&utm_source=AdobeCampaign&utm_medium=email&theSource=EOJ85&e_cti=4515648&e_ct=T&Override=1&deliveryName=DM167560

RogerPensionGuy

poseidon1 said:

RogerPensionGuy said:

I opened up a HL and am happy and frustrated with their security varafication systems, rather they are secure and it feels secure to me.

So I'll probably buy gilts and use the Active Saver. 

The Active Saver looks simple. 

I'll have to investigate and understand how to buy gilts.
***
A quick question to anyone, if I put in X pounds in to a product in their Active Saver today, can I put in more X pounds in to that product tomorrow or next week? 
***
My guess is if it's an instant access account product and it still shows availability, I can just put in more pounds whenever I like. 

However, if product is a term product, lets say it says apply by 10MAY24, I can top up that account if it still shows availability when I look in a few days. 

Or after opening a term product, do I have 7 or 14 days from opening to top up product. 

I tried looking on HL site and was unable to see the exact mechanics of exactly how it works, I was going to plonk a token amount in the various products and then when I see the workings, top up the various products to the required levels I feel appropriate. 

I was poking about for monthly interest and only noticed monthly interest available on instant products, I noticed most longer term accounts pay interest on maturity, so that's not purfect on managing interest payments every year, I did notice a 2 or 3 year term that paid interest annually, so that could be helpful for me. 

Any information on my one *** question *** above would be most helpful and thanks in advance. 

You  mention potentially buying gilts, per link below you have a very short window ( tomorrow deadline ) to participate in the latest gilt auction of 4.125% Treasury stock 2029.  I am not sure if you have to pass HLs sophiscated investor quiz before they let you apply, but this auction allows you to get into a gilt at zero commission, clean price and (maybe ) a small discount to its face value on maturity.

That said,  you may wish to study gilts a bit more before taking the plunge. Unless purchased at or below par and held all the way to maturity, gilts are not necessarily risk free, although readily tradeable. I also invest direct in corporate bonds, so personally satisfied that subject to the stated criteria, gilts are considerably less risky compared to corporate bonds.

https://www.hl.co.uk/shares/ipos-and-new-issues/treasury-2029-gilt-launch?utm_campaign=EOJ85-Gilt-Books-Open-23.04.24&utm_source=AdobeCampaign&utm_medium=email&theSource=EOJ85&e_cti=4515648&e_ct=T&Override=1&deliveryName=DM167560

Nice post and Tks. 

Looks like I can buy these gilts by just flicking thro a few simple questions. 

Am I correct these items here will be pay out 4% odd interest PA, 2 payments per year.

If I'm correct on my paragraph above, think I need low yielding interest to get the tax advantages I want.

Thought I would be looking for gilts that only pay like 0.125% interest and enjoy no income and CGT on the difference between the buy and sell price? 

poseidon1

RogerPensionGuy said:

poseidon1 said:

RogerPensionGuy said:

I opened up a HL and am happy and frustrated with their security varafication systems, rather they are secure and it feels secure to me.

So I'll probably buy gilts and use the Active Saver. 

The Active Saver looks simple. 

I'll have to investigate and understand how to buy gilts.
***
A quick question to anyone, if I put in X pounds in to a product in their Active Saver today, can I put in more X pounds in to that product tomorrow or next week? 
***
My guess is if it's an instant access account product and it still shows availability, I can just put in more pounds whenever I like. 

However, if product is a term product, lets say it says apply by 10MAY24, I can top up that account if it still shows availability when I look in a few days. 

Or after opening a term product, do I have 7 or 14 days from opening to top up product. 

I tried looking on HL site and was unable to see the exact mechanics of exactly how it works, I was going to plonk a token amount in the various products and then when I see the workings, top up the various products to the required levels I feel appropriate. 

I was poking about for monthly interest and only noticed monthly interest available on instant products, I noticed most longer term accounts pay interest on maturity, so that's not purfect on managing interest payments every year, I did notice a 2 or 3 year term that paid interest annually, so that could be helpful for me. 

Any information on my one *** question *** above would be most helpful and thanks in advance. 

You  mention potentially buying gilts, per link below you have a very short window ( tomorrow deadline ) to participate in the latest gilt auction of 4.125% Treasury stock 2029.  I am not sure if you have to pass HLs sophiscated investor quiz before they let you apply, but this auction allows you to get into a gilt at zero commission, clean price and (maybe ) a small discount to its face value on maturity.

That said,  you may wish to study gilts a bit more before taking the plunge. Unless purchased at or below par and held all the way to maturity, gilts are not necessarily risk free, although readily tradeable. I also invest direct in corporate bonds, so personally satisfied that subject to the stated criteria, gilts are considerably less risky compared to corporate bonds.

https://www.hl.co.uk/shares/ipos-and-new-issues/treasury-2029-gilt-launch?utm_campaign=EOJ85-Gilt-Books-Open-23.04.24&utm_source=AdobeCampaign&utm_medium=email&theSource=EOJ85&e_cti=4515648&e_ct=T&Override=1&deliveryName=DM167560

Nice post and Tks. 

Looks like I can buy these gilts by just flicking thro a few simple questions. 

Am I correct these items here will be pay out 4% odd interest PA, 2 payments per year.

If I'm correct on my paragraph above, think I need low yielding interest to get the tax advantages I want.

Thought I would be looking for gilts that only pay like 0.125% interest and enjoy no income and CGT on the difference between the buy and sell price? 

This particular gilt is for income seekers holding in ISA or Sipp. As a higher rate tax payer you will lose 40 to 45% ( depending on your marginal rate ), with not much scope for tax free capital gain over the next 5 years unless general interest rates fall steeply.

So for your purposes low interest interest gilts or zero Treasury notes might make more sense.  You missed the last Treasury Note from HL that had a deadline last Thursday  with  a 6 month duration. They estimated  it would be auctioned at a price to give an annualised yield to maturity of around 5.125%, so a tax free capital gain of half that ( say around 2.5%).  I am a higher tax payer myself, but did not find a 2.5% tax free gain  over 6 months especially appealing, still you might see things differently.

As for low interest gilts, yes you will be trying to buy well below par to obtain a worthwhile tax free gain when they eventually mature. 

If you like more insight ,commentary and suggestions on gilts, bonds and the fixed income world generally, you could do worse than dip into the Lemonfool forum link below, there is a post on 25 April directly relating to low interest gilts available at par with around 5 year duration:

https://www.lemonfool.co.uk/viewforum.php?f=52&sid=f2e1216d1cde05c093cbb862103b6e48

If nothing else with this forum of like minded investors, you will find the sheer variety of fixed interest securities  available to retail investors intriguing, but as with all things in investment markets ensure you properly understand the risk/reward.

RogerPensionGuy

Well I managed to open up a HL Active Savings without too much bother.

Then plonked a token amount of cash in to a good few of them saving products, they show pending now, I will let them all hopefully open up and then top them up appropriately, maybe I will open up a few longer term products to boot in a bit.

I understand every different bank/institution in the Active Saver menu has its own FSCS protection/85K so I won't put more than 85K in any one of them by name, I guess it would be possible to get more than one product with a provider and then I guess it's just 85K across all the products with that provider.

I think reference FSCS protection, am I correct that I should never have more than 85K actually sitting in the HL Cash Hub as if Barclays went horrible, all above 85K lost.

So if all the above is correct, I will move cash through the HL Cash Hub and feed products keeping below 85K in any box, then when I want money out, I will need to move it out like how I moved it in.

Below is a copy/paste from HL for info....

"Your money is protected

Money in the cash hub is kept separate from our own company money in a safeguarded account with Barclays Bank.

Once you move your money into a savings product, it’s held with that banking partner, not HL. Each banking partner on our platform has Financial Services Compensation Scheme (FSCS) cover up to £85,000"

***

PS, I just went back on HL, it sure looks like a person could use many products from an individual bank/institution, but thinking back when I opened the instant products, I think it may of checked the FSCS across the Active Saver, so guessing it may advise/remind you of the total protection available.

RogerPensionGuy

I have just been reading up about HL and protection of cash in the cash hub. I am yet again confused, is it 85K or unlimited? Copy/paste below, any views?
***

"If HL Savings Ltd fails:

As an electronic money institution, we issue you electronic money (e-money) equal to your money held in the cash hub. This is so you can see how much money you hold. But the cash hub isn’t a savings account and it doesn’t pay any interest.

In the unlikely event that we (HL Savings Ltd) fail, your money in the cash hub is not covered by the FSCS. Instead, it’s protected through the FCA’s safeguarding rules.

Money in the cash hub is kept separately from our own company money in a safeguarded account with an approved bank (currently Barclays Bank Plc) that creditors can’t access.

There’s no limit to the amount protected through safeguarding, but some costs could be taken by the administrator or liquidator if we were to fail. This could impact the amount that you receive, and it could take longer to get your money back than if it were held directly with a bank.

If the cash hub account provider fails:

If Barclays were to fail, the FSCS will protect up to £85,000 of your eligible deposits in the cash hub, but it may take longer to get your money back than if it were held directly with Barclays. If you hold money with Barclays outside of Active Savings as well, either directly or through other providers, this may also fall under the same £85,000 limit"

poseidon1

RogerPensionGuy said:

I have just been reading up about HL and protection of cash in the cash hub. I am yet again confused, is it 85K or unlimited? Copy/paste below, any views?
***

"If HL Savings Ltd fails:

As an electronic money institution, we issue you electronic money (e-money) equal to your money held in the cash hub. This is so you can see how much money you hold. But the cash hub isn’t a savings account and it doesn’t pay any interest.

In the unlikely event that we (HL Savings Ltd) fail, your money in the cash hub is not covered by the FSCS. Instead, it’s protected through the FCA’s safeguarding rules.

Money in the cash hub is kept separately from our own company money in a safeguarded account with an approved bank (currently Barclays Bank Plc) that creditors can’t access.

There’s no limit to the amount protected through safeguarding, but some costs could be taken by the administrator or liquidator if we were to fail. This could impact the amount that you receive, and it could take longer to get your money back than if it were held directly with a bank.

If the cash hub account provider fails:

If Barclays were to fail, the FSCS will protect up to £85,000 of your eligible deposits in the cash hub, but it may take longer to get your money back than if it were held directly with Barclays. If you hold money with Barclays outside of Active Savings as well, either directly or through other providers, this may also fall under the same £85,000 limit"

Seems clear to me that the cash hub  should only be used for at most a day pending your decision of which instant access/ fixed rate account provider to opt for. The hub is maintained by Barclays so only has 1 lot of FSCS. 

The point is, it should never have substantial funds sitting there for longer than a day. In my case, and at most, funds might be in the hub overnight only. As HL points out the hub pays no interest.

Right now moneys are with Charter Savings Bank instant access, pending a decision about what to do with  Santander monies (held direct with Santander)  where interest rate will drop significantly  next month.

nottsphil

poseidon1 said:

RogerPensionGuy said:

I have just been reading up about HL and protection of cash in the cash hub. I am yet again confused, is it 85K or unlimited? Copy/paste below, any views?
***

"If HL Savings Ltd fails:

As an electronic money institution, we issue you electronic money (e-money) equal to your money held in the cash hub. This is so you can see how much money you hold. But the cash hub isn’t a savings account and it doesn’t pay any interest.

In the unlikely event that we (HL Savings Ltd) fail, your money in the cash hub is not covered by the FSCS. Instead, it’s protected through the FCA’s safeguarding rules.

Money in the cash hub is kept separately from our own company money in a safeguarded account with an approved bank (currently Barclays Bank Plc) that creditors can’t access.

There’s no limit to the amount protected through safeguarding, but some costs could be taken by the administrator or liquidator if we were to fail. This could impact the amount that you receive, and it could take longer to get your money back than if it were held directly with a bank.

If the cash hub account provider fails:

If Barclays were to fail, the FSCS will protect up to £85,000 of your eligible deposits in the cash hub, but it may take longer to get your money back than if it were held directly with Barclays. If you hold money with Barclays outside of Active Savings as well, either directly or through other providers, this may also fall under the same £85,000 limit"

Seems clear to me that the cash hub  should only be used for at most a day pending your decision of which instant access/ fixed rate account provider to opt for. The hub is maintained by Barclays so only has 1 lot of FSCS. 

The point is, it should never have substantial funds sitting there for longer than a day. In my case, and at most, funds might be in the hub overnight only. As HL points out the hub pays no interest.

I'm going to open one to take advantage of the MSE £100 cashback which ends 23.59 on Sunday. Do you know what would be the cut off time for opening a fixed rate saver on Friday? Like you, I wouldn't want a five figure sum earning no interest for three days.
I realise the time I mentioned isn't the limit for actually opening a savings account.