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Comments
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The FSCS temporary high balance protection is at the discretion of the scheme, whereas the £120K protection is a standard part of the scheme and compensation is automatic. For the higher coverage, you have to make a claim and wait for it to be assessed, during which time you won't have access to the money and run the risk that it won't pay out.
So, if you are super cautious, keep below the £120K per license. That said, if we get to a situation where NatWest (or similarly Lloyds or Barclays) become insolvent and the scheme needs to kick in, we will all have way bigger problems to worry about!
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Thanks for the replies, I think I will use the other accounts up to 120K for each and maybe open a PO account. I did open the Lemfi 5% account when it first appeared, but I'm taking a cautious approach as I will need the funds in September for the house purchase.
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I wouldn't go near the PO savings accounts. They appear to be nothing but trouble.
Consider Tembo and Oxbury instead.
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I did something similar for a house purchase nearly two years ago. I would share the following:
- Remember transactional and daily limits to/from accounts will vary, so with some accounts it may take more than a week to transfer everything. Plan ahead.
- Different financial institutions have different fraud triggers. if you start moving chunks of cash about they might get trigger happy and you find your plans get delayed while they "protect you as a customer".
- Open an "assembly savings account" with the same financial institution from where you will ultimate pay out the house purchase moneys and move the funds into that over the preceeding couple of weeks. It might not be the best interest rate, but as internal transfers to a current account for a CHAPS payment are usually instant, you have the assurance you can make the payment when you need to.
Record all of this in detail for the "proof of funds" that your solicitor will require. Perhaps over the top, but I ended up building a flow chart with every transaction, and supporting bank statements, to demonstrate where the money had come from. It ticked the box nicely.
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Interesting idea for the flow chart. Did you use any particular program for that?
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Unfortunately, I'm not a new customer for Oxbury and Tembo is £20k max and I will not bother with the PO as after 45 years at this address they asked for ID!
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I just used PowerPoint. It helped to explain money going in and out of a single current account (my "linked account"). I thought just sending a pile of statements would be utterly confusing for the solicitor and ultimately result in delays and questions. The flow chart allowed them to more easily tie everything together.
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I know it's likely to be large sum and u will want to maximise interest, BUT given u say it's only for one month then maybe the govt backed NS&I would be less hassle/ easier albeit at the expense of a poorer interst rate.
NS&I Direct Saver: 3.45% AER (variable), is easy access and up to 2 Million.
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That's certainly an option, but how easy would it be to transfer 500k from NS&I to my solicitor when the funds are required?
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500k is a lot to lose any interest on ..even for a month so maybe mix and match with the 120k limit better accounts elsewhere....
This is from Chatgpt so I would suggest that you confirm with NS&I to ensure it's accurate!
Up to £50,000 in total withdrawals in one day: the money will normally reach your nominated bank account by the end of the next banking day if you submit the request before 8pm. �
NS&I
More than £50,000 in total withdrawals in one day: NS&I will still process the withdrawal, but it typically takes longer—normally 2–4 banking days (for phone requests) or around 2 banking days (online). �
NS&I
So, for example:
Withdraw £20,000 today → usually arrives the next banking day.
Withdraw £250,000 today → allowed, but expect a longer processing time.
The only balance rule is that you must leave at least £1 in the account to keep it open, unless you are withdrawing everything and closing the account. �1
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