Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@. Skimlinks & other affiliated links are turned on

Search
  • FIRST POST
    • Richtea42
    • By Richtea42 7th Aug 18, 3:33 PM
    • 3Posts
    • 1Thanks
    Richtea42
    Best one pot solution
    • #1
    • 7th Aug 18, 3:33 PM
    Best one pot solution 7th Aug 18 at 3:33 PM
    Being a bear of simple brain I wanted to put my savings in one place rather than opening a set of different apps and internet accounts.
    Currently getting terrible rates from HSBC 0.1 % on their Premier Saver - feeling not very special!
    The balance is at 215K but about to go up to 400K. This is sparking me into getting something better sorted.
    I have an ISA which I can easily move which again is with HSBC is only 0.75%. Happy for this to be in a different place. It's at 40K.
    I'm looking for a simple solution with reasonable returns rather than complicated and the best returns.
    Many thanks in advance.

    Richard
Page 1
    • eskbanker
    • By eskbanker 7th Aug 18, 3:58 PM
    • 7,866 Posts
    • 8,703 Thanks
    eskbanker
    • #2
    • 7th Aug 18, 3:58 PM
    • #2
    • 7th Aug 18, 3:58 PM
    Savings in any individual institution are only covered up to 85K by the Financial Services Compensation Scheme and the vast majority on here would advise you keep below that level in any one place, unless it's NS&I (Treasury-backed up to seven figures).

    However, most on here would also question the wisdom of keeping such a large sum in cash deposit form, where it's highly likely to lose value to inflation. How long do you anticipate keeping it for before using it?
    • xylophone
    • By xylophone 7th Aug 18, 4:11 PM
    • 26,125 Posts
    • 15,483 Thanks
    xylophone
    • #3
    • 7th Aug 18, 4:11 PM
    • #3
    • 7th Aug 18, 4:11 PM
    Do you have a reason for keeping a very high cash balance (a house purchase perhaps)?

    https://www.fscs.org.uk/what-we-cover/compensation-limits/deposit-limits/

    https://www.nsandi.com/income-bonds - safe to hold the lot here but the rate is hardly exciting.


    http://www.thisismoney.co.uk/money/article-1583859/Best-savings-rates-General-savings-Internet-branch.html
    • OldMusicGuy
    • By OldMusicGuy 7th Aug 18, 5:52 PM
    • 512 Posts
    • 993 Thanks
    OldMusicGuy
    • #4
    • 7th Aug 18, 5:52 PM
    • #4
    • 7th Aug 18, 5:52 PM
    If you want simple and safe in one place, NS&I is the way to go. The returns aren't what I would call "reasonable" but they are the best you can get.

    If you want better returns from savings, you can use fixed rate savings bonds that can give you up to 2.68% over 5 years. See link here: https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/

    However, I wouldn't put more than 85K into any one account except NS&I. I currently have a "ladder" of these bonds in several of these different banks totalling around 180K that mature at different time periods. It's not hard to manage multiple accounts, they are easy to setup and manage online.
    • Linton
    • By Linton 7th Aug 18, 5:59 PM
    • 9,569 Posts
    • 9,780 Thanks
    Linton
    • #5
    • 7th Aug 18, 5:59 PM
    • #5
    • 7th Aug 18, 5:59 PM
    You wont get reasonable returns on 400K of cash deposits. You are unlikely to even match inflation. If you are holding the money for a long time it should be at least partially invested in shares. And if it is just for the short term safety is more important than returns.
    • jimjames
    • By jimjames 7th Aug 18, 8:05 PM
    • 12,712 Posts
    • 11,408 Thanks
    jimjames
    • #6
    • 7th Aug 18, 8:05 PM
    • #6
    • 7th Aug 18, 8:05 PM
    I'm looking for a simple solution with reasonable returns rather than complicated and the best returns.
    Many thanks in advance.

    Richard
    Originally posted by Richtea42
    The answer would be investments for the majority of it if you have no immediate need for the money and means very little effort or complication required. Obviously if for house purchase etc then that isn't an option.
    Remember the saying: if it looks too good to be true it almost certainly is.
    • kidmugsy
    • By kidmugsy 7th Aug 18, 10:25 PM
    • 11,387 Posts
    • 7,912 Thanks
    kidmugsy
    • #7
    • 7th Aug 18, 10:25 PM
    • #7
    • 7th Aug 18, 10:25 PM
    Being a bear of simple brain I wanted to put my savings in one place ...

    The balance is at 215K but about to go up to 400K. ...

    I have an ISA which I can easily move which again is with HSBC is only 0.75%. Happy for this to be in a different place. It's at 40K.
    Originally posted by Richtea42
    If you were to save 400k in cash at 1% AER you'd be getting 4k p.a. in interest, which would presumably be taxed. You could put 50k into Premium Bonds: their prizes are tax-free.

    Holding gold sovereigns is tax-free: read up on that on the Royal Mint website.

    What's the money for and when?
    Free the dunston one next time too.
    • Richtea42
    • By Richtea42 8th Aug 18, 8:02 AM
    • 3 Posts
    • 1 Thanks
    Richtea42
    • #8
    • 8th Aug 18, 8:02 AM
    • #8
    • 8th Aug 18, 8:02 AM
    Thanks for all that sound advice.

    And sorry for the lack of a piece of vital information.

    I want to keep the flexibility to buy a house in a year or so. Although I may well stay put. If I don't end up using the money to buy a place I'd like to think I was doing something more constructive with it.

    Getting my full set of premium bonds is probably a good place to start.

    Thanks Richard
    • Linton
    • By Linton 8th Aug 18, 9:17 AM
    • 9,569 Posts
    • 9,780 Thanks
    Linton
    • #9
    • 8th Aug 18, 9:17 AM
    • #9
    • 8th Aug 18, 9:17 AM
    For a year or two NS&I is the easiest and safest place to hold large amounts of cash and the interest is better than from standard bank deposit accounts. It is 100% protected by Government guarantee.
    • Audaxer
    • By Audaxer 8th Aug 18, 9:20 AM
    • 1,232 Posts
    • 738 Thanks
    Audaxer
    Getting my full set of premium bonds is probably a good place to start.
    Originally posted by Richtea42
    I don't really think that is the best place to start as unless you are very lucky as returns are likely to be below the average win rate advertised. The best place to start would be to either put it all in NS&I products so they are fully covered, or a maximum of 85k cash per bank.

    It really is worth also considering a low cost globally diverse multi asset fund of shares and bonds for some of it, unless you are planning to use it all to buy a property in the near future. You could have a look at Vanguard LifeStrategy, HSBC Global Strategy and L&G Multi Index funds - all come in a range of risk factors to suit to risk/volatility tolerance.
    • SG27
    • By SG27 8th Aug 18, 12:33 PM
    • 2,371 Posts
    • 1,607 Thanks
    SG27
    Definitely NS&I. No need to split the money into 85k chunks. Instant access direct saver pays 0.95%. Not a great rate but better than the near 0 you are getting now.
    • kidmugsy
    • By kidmugsy 8th Aug 18, 1:07 PM
    • 11,387 Posts
    • 7,912 Thanks
    kidmugsy
    Definitely NS&I. No need to split the money into 85k chunks. Instant access direct saver pays 0.95%. Not a great rate but better than the near 0 you are getting now.
    Originally posted by SG27
    Not a great rate and less than he'll get from 50k in premium bonds, where he can expect about 1.2% - 1.25% in regularish small prizes, plus the tiny chance of a big prize. And all tax-free.
    Free the dunston one next time too.
    • atush
    • By atush 8th Aug 18, 1:08 PM
    • 17,002 Posts
    • 10,623 Thanks
    atush
    NSI, 50K PBs and the rest into a savings acct or bond depending on earliest date you need the money.

    I would however, consider upping your pension contribs while you can.
    • Richtea42
    • By Richtea42 14th Aug 18, 3:15 PM
    • 3 Posts
    • 1 Thanks
    Richtea42
    Thanks.
    Going with NSandI and 50K in Premium bonds.
    Thanks everyone.

    Richard
    • FatherAbraham
    • By FatherAbraham 14th Aug 18, 9:17 PM
    • 797 Posts
    • 607 Thanks
    FatherAbraham
    Thanks for all that sound advice.

    And sorry for the lack of a piece of vital information.

    I want to keep the flexibility to buy a house in a year or so. Although I may well stay put. If I don't end up using the money to buy a place I'd like to think I was doing something more constructive with it.

    Getting my full set of premium bonds is probably a good place to start.

    Thanks Richard
    Originally posted by Richtea42
    In that case, you should consider investing it into a fund which holds assets related to the real-estate market which interests you.

    Cash deposits have a poor correlation with house prices.
    • savings4life
    • By savings4life 15th Aug 18, 11:34 AM
    • 2 Posts
    • 0 Thanks
    savings4life
    Unless you need the funds in the short term (for a house purchase, for example), I'd say your main goal should be beating inflation (currently at 2.5%). If you don't beat inflation, you are essentially losing money.

    I'd get as much as I could into stocks and shares (if you are risk averse, you can put the majority of it into bonds as part of that). If you're new to it, I'd start with one of the Roboadvisors, but you could even go direct to someone like Fidelity and put it in there (fees would be much lower if you did that).
    • ColdIron
    • By ColdIron 15th Aug 18, 11:42 AM
    • 4,430 Posts
    • 5,668 Thanks
    ColdIron
    Unless you need the funds in the short term (for a house purchase, for example), I'd say your main goal should be beating inflation (currently at 2.5%). If you don't beat inflation, you are essentially losing money.

    I'd get as much as I could into stocks and shares (if you are risk averse, you can put the majority of it into bonds as part of that).
    Originally posted by savings4life
    You think bonds will beat inflation?
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

27Posts Today

4,416Users online

Martin's Twitter
  • Ta ta... for now. This August, as I try and do every few yrs, I'm lucky enough to be taking a sabbatical. No work,? https://t.co/Xx4R3eLhFG

  • RT @lethalbrignull: @MartinSLewis I've been sitting here for a good while trying to decide my answer to this, feeling grateful for living i?

  • Early days but currently it's exactly 50 50 in liberality v democracy, with younger people more liberal, older more? https://t.co/YwJr4izuIj

  • Follow Martin