One Bank/Building Society or Several?

aehnorwich

Strange question really - but at what stage do people think it is wise to start spreading money around between different places. I have slowly accumulated about £40k+ and having constantly opened and closed accounts with just about everyone I have settled on the Chelsea BS and am pleased with their range of accounts. But - should I be wary of this and instead start opening £10k savings accounts concurrently with different providers - just to be safe? I know the Chelsea is as safe as anywhere but having taken so much trouble to get to where I am I should be devastated to lose it. I am just paranoid I think. I might need the money tomorrow or in 10 years I've no idea - so I keep it fairly accessible.

Pheno

aehnorwich wrote:

Strange question really - but at what stage do people think it is wise to start spreading money around between different places. I have slowly accumulated about £40k+ and having constantly opened and closed accounts with just about everyone I have settled on the Chelsea BS and am pleased with their range of accounts. But - should I be wary of this and instead start opening £10k savings accounts concurrently with different providers - just to be safe? I know the Chelsea is as safe as anywhere but having taken so much trouble to get to where I am I should be devastated to lose it. I am just paranoid I think. I might need the money tomorrow or in 10 years I've no idea - so I keep it fairly accessible.

You're insured for up to 30k per bank, so I try to not put more than 30k in a single bank.

YorkshireBoy

Pheno wrote:

You're insured for up to 30k per bank, so I try to not put more than 30k in a single bank.

More specifically, the actual details can be found at the Financial Services Compensation Scheme web site...

http://www.fscs.org.uk/consumer/key_facts/limitations_of_the_scheme/compensation_limits/

The FSCS have set the compensation limits for deposit accounts at £31,700 per person, which is made up of 100% of the first £2,000 and 90% of the next £33,000.

HTH
YB

baldbloke_2

So what you really need are 20 accounts with £2000 in each - and then you can sleep easy!

I firmly believe that a small number of Regular Saver accounts can not be beat -funded by SO for the minimum monthly deposit and topped up with a spread of any money leftover . The interest rates are invariably excellent and because there are always restrictions on the amount you can invest it's simple to keep the balances manageable. As long as you are transferring from a high-interest account then you are losing nothing by this.
Searching out the Regular Savers is a good time-passer as well. For those with a sad life. :wave:

ReportInvestor

As baldbloke suggests, it's very good idea for the faint hearted saver who is not adverse to a bit of form filling.

And there remains the possibility of a small payout of maybe 40 quid net should our 63 remaining building societies undergo any further consolidation .

Portman's takeover of the Staffordshire at the end of 2003 was the last such occasion.

baldbloke_2

Reporter wrote:

As baldbloke suggests, it's very good idea for the faint hearted saver who is not adverse to a bit of form filling.

And there remains the possibility of a small payout of maybe 40 quid net should our 63 remaining building societies undergo any further consolidation .

Portman's takeover of the Staffordshire at the end of 2003 was the last such occasion.

Oh Good! Only another 57 to join - I didn't realize I was getting that close to world(ish) domination. :rolleyes:
I am ethically and morally opposed to the transfer of our Societies to the private sector - mind you 40 quid sounds alright. Dilemmas & Infamy.

Walletwatch

aehnorwich wrote:

Strange question really - but at what stage do people think it is wise to start spreading money around between different places. I have slowly accumulated about £40k+ and having constantly opened and closed accounts with just about everyone I have settled on the Chelsea BS and am pleased with their range of accounts. But - should I be wary of this and instead start opening £10k savings accounts concurrently with different providers - just to be safe? I know the Chelsea is as safe as anywhere but having taken so much trouble to get to where I am I should be devastated to lose it. I am just paranoid I think. I might need the money tomorrow or in 10 years I've no idea - so I keep it fairly accessible.

I park my money in the account that offers me the highest interest, period. I of course, do not get into a relationship with any bank that comes up and offers me a good rate, of course. I perform some background checks and then apply for an account.

However, I do not close any of the accounts I open. This is because there is a good chance that the previous bank comes up with a promotional rate, in which case, I just need to transfer the money back there, and don't have to open another account with them right from scratch. Most of these best buys are anyway internet-operated accounts, where you can leave a minimum balance of £1.

Sorry, I know your query was more on the safety aspect of these accounts rather than convenience, but I thot I'd share my thots on multiple bank accounts anyway.

steady__eddie

Fortunately for me, I am not morally or ethically opposed to demutualisation but I have found that it is financially advantageous to "spread it around a bit".
Not only is the £2000 compo safeguard handy but should an institution offer a grabbit while you can, I have found it easier to open an account if you are already a member. It saves the hassle of sending i.d. through the post and fear of losing i.d, in addition they tend to notify you when they are offering "A new and exciting addition to our product range" 28 societies down, only 21 left.
Before anyone does the maths and comes up with 49, 14 societies impose geographic residency qualifications.

baldbloke_2

Walletwatch wrote:

I park my money in the account that offers me the highest interest, period. I of course, do not get into a relationship with any bank that comes up and offers me a good rate, of course. I perform some background checks and then apply for an account.

However, I do not close any of the accounts I open. This is because there is a good chance that the previous bank comes up with a promotional rate, in which case, I just need to transfer the money back there, and don't have to open another account with them right from scratch. Most of these best buys are anyway internet-operated accounts, where you can leave a minimum balance of £1.

Sorry, I know your query was more on the safety aspect of these accounts rather than convenience, but I thot I'd share my thots on multiple bank accounts anyway.

I think your comments are very relevant. Like yourself and Mr '28 down' Steady Eddie I have toyed with the idea of leaving a trail of £1 balances across the banking world. It does make sense in many ways. I think in many cases you'd have to maintain some semblance of activity to keep them open for ever.
I honestly think the safety concern is unwarranted as long as one sticks with the recognised banks and BSs.

Hobo_2

baldbloke wrote:

I think your comments are very relevant. Like yourself and Mr '28 down' Steady Eddie I have toyed with the idea of leaving a trail of £1 balances across the banking world. It does make sense in many ways. I think in many cases you'd have to maintain some semblance of activity to keep them open for ever.
I honestly think the safety concern is unwarranted as long as one sticks with the recognised banks and BSs.

Funny really, Building Societies seem to promote this £1 account, as when opening regular saver acc`s another instant access of theirs (with poor rate)has to be opened, for your money to be swept into on maturity, HFX being the exception.
As mentioned best to keep them open for any "existing customer only deals" as recently witnessed with the Nationwide summer bond 5.5%, could be a growing trend this judging by recent TV ads (Nationwide/Orange)

Chadsman

baldbloke wrote:

Dilemmas & Infamy.

Infamy, infamy... everybodys got it in for me