Spreading money across accounts - Have I got it right?

ragdoll

My OH and I are set to complete our house sale on the 28th Feb and will be moving in with my mum while we look for another. We will have 170k in equity. So far we have opened an AA account each, a joint Newcastle Building Society account and I was planning on opening a Bradford & Bingley account.

On looking at Martin's chart I can only find AA and Newcastle listed, so I know they are not connected, but I couldn't see Bradford & Bingley. Can anyone confirm that they are not connected to the other two?

Does this sound like the right thing to do and also being a bit paranoid, when we complete I assume the solicitor gives us a cheque which we pay into our Lloyds account and then when it clears we transfer it into the others. I assume we just have to take a risk that all the money will be in once place for a few days. I don't think the solicitor would be keen on writing out 3 cheques!

Thanks

YorkshireBoy

ragdoll wrote: »

On looking at Martin's chart I can only find AA and Newcastle listed, so I know they are not connected, but I couldn't see Bradford & Bingley. Can anyone confirm that they are not connected to the other two?

B&B are listed in the third column/third from top, and (because they're coded white) are not connected to the other two.

http://www.moneysavingexpert.com/savings/safe-savings#every

Mikeyorks

ragdoll wrote: »

.. but I couldn't see Bradford & Bingley. Can anyone confirm that they are not connected to the other two?

3rd down in the right hand column! And unconnected with the other two.

The Solicitor will either give you a cheque or offer to (normally) CHAPS it direct to the account you nominate. Whichever way you can then spread the funds around.

But it's your choice as to whether you see the £35k limit (£70k for a joint account .. with at least that sum in) as a risk in your timeframe to needing the funds. It's inevitable you're going to have to herd the funds back into a single account for the next property (or collect 5/6 cheques several days in advance - as the Solicitor needs cleared funds) - so you need to ensure none of the accounts have restrictions on them?

tradetime

I presume you mean is the Newcastle linked to the other two as I can't find it on his list, the B&B is not linked to the AA, but have no idea about Newcastle. That table is getting a little dated as it was last updated on Oct, with the recent Egg story, it appears Egg is owned by Citibank, am not sure if that is a recent aquisition as they do not appear linked on that chart, though it may be that they are registered as different entities.
As for having all your money in one place for a few days, I would not worry too much about that. I have not got round to thinning all amy accounts down yet, though I am working on it.

YorkshireBoy

tradetime wrote: »

...they do not appear linked on that chart, though it may be that they are registered as different entities.

They are, for the moment at least, separate entities as far as FSA registration is concerned...

Egg Banking plc is a bank and is authorised and regulated by the Financial Services Authority. Egg Banking plc is entered in the Financial Services Authority register under number 205621.

<...snip>...

Citibank - Egg Banking plc is introducing a range of products provided by Citibank International plc. Citibank International plc is authorised and regulated by the Financial Services Authority. FSA reference number 122342.

http://new.egg.com/visitor/0,,3_57308--View_1073,00.html (foot of page)

...but I suspect they'll soon go the way of Halifax and BoS.