Maximum deposit to put in a bank account which will not exceed the £85K

20122013

What would be the maximum deposit to put in a bank account which will not exceed the £85K FSCS protection.

I was wondering of using  Principality BS as an example, their Online Bonus Triple Access (Issue 7) 4.55% (variable) interest pays on 1 January with 3 free access / year. 

Transfer £85K in there and on 2/1/26 move out all the interest so it is back to £85K again and do the same again the following interest pay day? pending the interest rate is still good?

I was going to put a maximum of £80K / per account as the interest will push the balance over £85K but as the interest rate is reducing so thinking of putting a £85K deposit and if interest is paid annually it may work?

MyRealNameToo

20122013 said:

What would be the maximum deposit to put in a bank account which will not exceed the £85K FSCS protection.

I was wondering of using  Principality BS as an example, their Online Bonus Triple Access (Issue 7) 4.55% (variable) interest pays on 1 January with 3 free access / year. 

Transfer £85K in there and on 2/1/26 move out all the interest so it is back to £85K again and do the same again the following interest pay day? pending the interest rate is still good?

I was going to put a maximum of £80K / per account as the interest will push the balance over £85K but as the interest rate is reducing so thinking of putting a £85K deposit and if interest is paid annually it may work?

Doesnt really... the FSCS cap is £85k so if you have an interest paid annually you just get your £85k back as you are already at the maximum whereas were you to deposit £80k you would get the £80k plus the interest due up until the default. So by putting the full amount in you are waiving goodbye to the interest in a default situation and if you are comfortable at waiving goodbye to money then dont split it across so many banks and put more into a bank with a higher return and run the risk. 

20122013

MyRealNameToo said:

Doesnt really... the FSCS cap is £85k so if you have an interest paid annually you just get your £85k back as you are already at the maximum whereas were you to deposit £80k you would get the £80k plus the interest due up until the default. So by putting the full amount in you are waiving goodbye to the interest in a default situation and if you are comfortable at waiving goodbye to money then dont split it across so many banks and put more into a bank with a higher return and run the risk. 

good point.

MeteredOut

20122013 said:

What would be the maximum deposit to put in a bank account which will not exceed the £85K FSCS protection.

I was wondering of using  Principality BS as an example, their Online Bonus Triple Access (Issue 7) 4.55% (variable) interest pays on 1 January with 3 free access / year. 

Transfer £85K in there and on 2/1/26 move out all the interest so it is back to £85K again and do the same again the following interest pay day? pending the interest rate is still good?

I was going to put a maximum of £80K / per account as the interest will push the balance over £85K but as the interest rate is reducing so thinking of putting a £85K deposit and if interest is paid annually it may work?

Small side note, £80K at 4.55% won't go above £85K in one year. It'd take nearer 1 year 4 and a bit months, assuming rates don't change (but that product has a 1.8% bonus for the first 12 months, so will take longer).

Edit: It looks like the 4.55% Issue 7 has been replaced with an Issue 8: 4.45% with 12 month 1.7% bonus, but reducing by 0.2% next month.

https://www.principality.co.uk/home/savings/savings-accounts/online-bonus-triple-access

You could put around £81,500 in that and it would just about reach the £85K in one year.

(81500 * 1.0425 = 84,963.75; note this ignores the few weeks where you'd still get the 4.45%)

20122013

MeteredOut said:

20122013 said:

What would be the maximum deposit to put in a bank account which will not exceed the £85K FSCS protection.

I was wondering of using  Principality BS as an example, their Online Bonus Triple Access (Issue 7) 4.55% (variable) interest pays on 1 January with 3 free access / year. 

Transfer £85K in there and on 2/1/26 move out all the interest so it is back to £85K again and do the same again the following interest pay day? pending the interest rate is still good?

I was going to put a maximum of £80K / per account as the interest will push the balance over £85K but as the interest rate is reducing so thinking of putting a £85K deposit and if interest is paid annually it may work?

Small side note, £80K at 4.55% won't go above £85K in one year. It'd take nearer 1 year 4 and a bit months, assuming rates don't change (but that product has a 1.8% bonus for the first 12 months, so will take longer).

Appreciate this, too

20122013

https://www.principality.co.uk/home/savings/savings-accounts/online-bonus-triple-access

I have been getting error message for the past 2 days:

'Sorry, Somethings gone wrong.'

I have tried different browsers, is anyone else getting the same error?

Ch1ll1Phlakes

20122013 said:

https://www.principality.co.uk/home/savings/savings-accounts/online-bonus-triple-access

I have been getting error message for the past 2 days:

'Sorry, Somethings gone wrong.'

I have tried different browsers, is anyone else getting the same error?

No error for me when I used your link and tried to open the account.

ivormonee

 plus the interest due up until the default. 

Is this the case with the UK FSCS? I am not sure that accrued interest up until date of default is covered. It may only be capital + interest actually credited (<=£85k) that is covered, excluding interest accrued (and not yet credited).
But I am not sure, so just asking for some clarity. Any sources of definitive info. on this would be most welcome, as my internet searches lead to nowhere on this specific point.

Ch1ll1Phlakes

ivormonee said:

 plus the interest due up until the default. 

Is this the case with the UK FSCS? I am not sure that accrued interest up until date of default is covered. It may only be capital + interest actually credited (<=£85k) that is covered, excluding interest accrued (and not yet credited).
But I am not sure, so just asking for some clarity. Any sources of definitive info. on this would be most welcome, as my internet searches lead to nowhere on this specific point.

Yes interest is due up to default of the firm in question. Here's what the interest and savings manual says along with a link SAIM2090 - Interest: interest payable from the Financial Services Compensation Scheme: examples - HMRC internal manual - GOV.UK

masonic

As a user of the FSCS, I can confirm accrued interest was compensated.

ivormonee

Ch1ll1Phlakes said:

Yes interest is due up to default of the firm in question. Here's what the interest and savings manual says along with a link SAIM2090 - Interest: interest payable from the Financial Services Compensation Scheme: examples - HMRC internal manual - GOV.UK

Thanks for the very useful link. It certainly indicates accrued interest is included.

It seems to me that providers don't understand this. 

For example, https://www.moneyboxapp.com/fscs-protection/ states:
Any interest which is due but not paid is not protected by FSCS.

And, https://www.moneyboxapp.com/learn/saving/articles/cash-isa-monthly-interest-payments-faqs/ states:

Switching from annual to monthly interest payments means more of your money is FSCS protected, as when interest is paid out, it’s covered by the Financial Services Compensation Scheme (FSCS).

How strange.