Keeping to 85,000 per organisation

dont_use_vistaprint

I’m curious what the people think when savings build up over the years and decades and then existing providers offering better rates than other providers, does this encourage you to exceed the 85,000 per organisation?

Currently monuments are offering a better rate on ISA than trading 212 but I’ve already exceeded 85,000 with Monument in non-ISA savings

Thoughts? 

masonic

Not for deposit accounts. I'm more relaxed about investment accounts where the assets are ringfenced.

Albermarle

dont_use_vistaprint said:

I’m curious what the people think when savings build up over the years and decades and then existing providers offering better rates than other providers, does this encourage you to exceed the 85,000 per organisation?

Currently monuments are offering a better rate on ISA than trading 212 but I’ve already exceeded 85,000 with Monument in non-ISA savings

Thoughts? 

I probably would not lose too much sleep if I went over with say Nationwide or Barclays, but with these smaller providers I would always keep below £85K

subjecttocontract

I nearly always keep below the £85K limit for cash isas. I take into account interest that's likely to be added not just for this tax year but also the next 2 or 3 years. Sometimes it means splitting an isa & transferring into 2 separate isas but I rarely put more than £75K into any one isa. I don't see the point of exceeding £85K when it's relatively easy to ensure, with planning, that I can keep below it.

It would be good if they could raise the limit to a nice round figure like £100K

Isarulesaretoocomplex

subjecttocontract said:

I nearly always keep below the £85K limit for cash isas. I take into account interest that's likely to be added not just for this tax year but also the next 2 or 3 years. Sometimes it means splitting an isa & transferring into 2 separate isas but I rarely put more than £75K into any one isa. I don't see the point of exceeding £85K when it's relatively easy to ensure, with planning, that I can keep below it.

It would be good if they could raise the limit to a nice found figure like £100K

There is talks of raising it to 110 iirc

DavidT67

Having dealt with administering estates of deceased relatives twice in recent years, I now pay attention to the threshold above which a financial instiution would require grant of probate to release funds instead.

NS&I are the outlier wanting sealed grant of probate to release amounts above £5K, whilst most banks will release on sight of death certificate and will for amounts up to £50K.

subjecttocontract

Yes, well, whatever floats your boat or works for you. But, as there are people about who can organise the necessary documents when you pass, personally I  wouldn't want the need for Grant of Probate dictating my financial decisions.

VNX

I’m. Not that worried about the 85k limit but for me it’s just not a risk worth taking so I keep under it

jimjames

dont_use_vistaprint said:

I’m curious what the people think when savings build up over the years and decades and then existing providers offering better rates than other providers, does this encourage you to exceed the 85,000 per organisation?

I wouldn't plan to keep £85k in cash for decades and decades, investments won't have the same issues.

Darnhall123

I would always keep below £85K with smaller companies. I’m currently in a 5yr 5.22% ISA with Shawbrook and just entering year 3 with a balance of sixty odd grand atm. Next year even with a couple of years to go, I’ll only put around £15K in so at the end of the 5yrs, even with interest it’ll only have eighty odd grand in there.