Savings interest rate thread
Discussion
7 5 7 said:
Luckily enough managed to get the CHASE (5.1%) which I am happy with until it expires in November.
Trading 212 do (5.2%), and Wealthily do a (4.9%) - all easy access accounts.
I also have the Chase (5.1%), but the rates you mention may and probably will drop soon, not the case with the FRB.Trading 212 do (5.2%), and Wealthily do a (4.9%) - all easy access accounts.
We are no longer on the way up now, we are heading back down again.
Pistom said:
Apologies for calling from the back of the class but what's the catch with Trading 212 - it seems like a very generous rate for instant access.
It's (5.2%) on univested cash, they are hoping you would use on the platform, only came across it as I dabble on there myself with a S&S ISA - probably more a teaser incentive to get more custom and probably won't last.Pistom said:
Apologies for calling from the back of the class but what's the catch with Trading 212 - it seems like a very generous rate for instant access.
5.2% on 'uninvested cash' held within a trading account is achieved by putting some or all of your money in qualifying money market funds. As QMMFs are (low-risk) investments, they don't qualify for FSCS protection.T212 is keen to point out that its 5.2% Cash ISA does not use QMMFs, therefore all of your money qualifies for FSCS protection (up to the usual £85k limit). However, T212 appears to place your money with other banks, so what happens if one of them fails?
For both products, I'd suggest reading all of the small print very carefully to properly understand how they work.
C69 said:
For both products, I'd suggest reading all of the small print very carefully to properly understand how they work.
Thank you for taking the time to explain that. After posting the question, I've signed up for an account after reading through their website which I was surprised was very clear.C69 said:
T212 is keen to point out that its 5.2% Cash ISA does not use QMMFs, therefore all of your money qualifies for FSCS protection (up to the usual £85k limit). However, T212 appears to place your money with other banks, so what happens if one of them fails?
They use three banks - this was from the MSE newsletter and explains it well:"The savings have the UK £85,000 savings safety protection... yet as it isn't a bank in its own right, the normal Financial Services Compensation Scheme (FSCS) savings safety protection works differently. Your money's held in a 'client money account' via the UK arms of Barclays, JPMorgan and/or NatWest - and kept separate from Trading 212's own money. These are all fully UK regulated (we have all this in writing from the FSCS), so that ensures your money's protected."
Note that if you already have £85k saved with Barclays in your own account for example, any amount above that deposited by T212 would not be covered under the FSCS. The £85k protection is per bank so if you're in the position of having that much saved with one of the three T212 use, it would be advisable to move it to another bank.
Funk said:
"The savings have the UK £85,000 savings safety protection... yet as it isn't a bank in its own right, the normal Financial Services Compensation Scheme (FSCS) savings safety protection works differently. Your money's held in a 'client money account' via the UK arms of Barclays, JPMorgan and/or NatWest - and kept separate from Trading 212's own money. These are all fully UK regulated (we have all this in writing from the FSCS), so that ensures your money's protected."
Note that if you already have £85k saved with Barclays in your own account for example, any amount above that deposited by T212 would not be covered under the FSCS. The £85k protection is per bank so if you're in the position of having that much saved with one of the three T212 use, it would be advisable to move it to another bank.
So I take it that for NatWest, that would include RBS?Note that if you already have £85k saved with Barclays in your own account for example, any amount above that deposited by T212 would not be covered under the FSCS. The £85k protection is per bank so if you're in the position of having that much saved with one of the three T212 use, it would be advisable to move it to another bank.
Pistom said:
Funk said:
"The savings have the UK £85,000 savings safety protection... yet as it isn't a bank in its own right, the normal Financial Services Compensation Scheme (FSCS) savings safety protection works differently. Your money's held in a 'client money account' via the UK arms of Barclays, JPMorgan and/or NatWest - and kept separate from Trading 212's own money. These are all fully UK regulated (we have all this in writing from the FSCS), so that ensures your money's protected."
Note that if you already have £85k saved with Barclays in your own account for example, any amount above that deposited by T212 would not be covered under the FSCS. The £85k protection is per bank so if you're in the position of having that much saved with one of the three T212 use, it would be advisable to move it to another bank.
So I take it that for NatWest, that would include RBS?Note that if you already have £85k saved with Barclays in your own account for example, any amount above that deposited by T212 would not be covered under the FSCS. The £85k protection is per bank so if you're in the position of having that much saved with one of the three T212 use, it would be advisable to move it to another bank.
"There are two important points to remember about the deposit compensation limit.
1. The limit applies to individuals and companies, not accounts. This means that for joint accounts the limit applies to each named account holder. So, for example, if you have a joint account with your spouse or partner, and no other accounts of your own with that firm, you will each receive up to £85,000 under the deposit limit. So FSCS would protect up to £170,000 of savings in a joint account.
2. The limit applies per authorised firm. This is important because sometimes a firm operates more than one brand under the same FRN or authorisation number. This means individuals with accounts held underdifferent brands with a firm operating under one FRN or authorisation number will only be entitled to a total of £85,000, regardless of the number of accounts held.
You should therefore check:
1. whether you hold deposits with a bank or building society that shares an FRN or authorisation number with another brand of that firm, and
2. whether your total deposits with all those brands are more than £85,000.
Example:
If you have a current account with “Bank X” and savings with “Bank Y” and they share one FRN or authorisation number, they are classed as a single firm for the purposes of compensation. This means your limit for compensation is £85,000 in total, shared across “Bank X” and “Bank Y”."
NatWest's FRN is 121878 and RBS is 114724 so it looks as though you would be covered for up to £85k with each bank in this situation.
Edited by Funk on Friday 14th June 03:48
A question to those with multiple bank accounts.
How do you keep track ?
If you died would your loved ones have a clue where everything was.
I ask this because I thought it a good idea to set up a regular saver from our joint account into a side account with the same bank, putting in the max of £400 a month.
This is nominally because its paying over 6% interest, but also because I worked out that the things we don't buy every month, like insurance and holidays, actually comes to about £700 a month, but also that theoretical we should have a spare £600 but never seem to do.
I've explained it to my wife and she hates the idea of another account. What if you die? I'll not know where all the money is going.
Just making sure she knows what the pass codes are or where to find them is seemingly too stressful.
How do you keep track ?
If you died would your loved ones have a clue where everything was.
I ask this because I thought it a good idea to set up a regular saver from our joint account into a side account with the same bank, putting in the max of £400 a month.
This is nominally because its paying over 6% interest, but also because I worked out that the things we don't buy every month, like insurance and holidays, actually comes to about £700 a month, but also that theoretical we should have a spare £600 but never seem to do.
I've explained it to my wife and she hates the idea of another account. What if you die? I'll not know where all the money is going.
Just making sure she knows what the pass codes are or where to find them is seemingly too stressful.
Pit Pony said:
A question to those with multiple bank accounts.
How do you keep track ?
If you died would your loved ones have a clue where everything was.
I ask this because I thought it a good idea to set up a regular saver from our joint account into a side account with the same bank, putting in the max of £400 a month.
This is nominally because its paying over 6% interest, but also because I worked out that the things we don't buy every month, like insurance and holidays, actually comes to about £700 a month, but also that theoretical we should have a spare £600 but never seem to do.
I've explained it to my wife and she hates the idea of another account. What if you die? I'll not know where all the money is going.
Just making sure she knows what the pass codes are or where to find them is seemingly too stressful.
Having dealt with this after my Dad died I do understand your worries. In my case I print out a list of my accounts and the current balance/maturity dates where appropriate and it is kept in the same place as a copy of my will, along with the most recent pension documents. I update it periodically, including any accounts I may have emptied into new accounts, to save my dependants wasting time on empty accounts in my name.How do you keep track ?
If you died would your loved ones have a clue where everything was.
I ask this because I thought it a good idea to set up a regular saver from our joint account into a side account with the same bank, putting in the max of £400 a month.
This is nominally because its paying over 6% interest, but also because I worked out that the things we don't buy every month, like insurance and holidays, actually comes to about £700 a month, but also that theoretical we should have a spare £600 but never seem to do.
I've explained it to my wife and she hates the idea of another account. What if you die? I'll not know where all the money is going.
Just making sure she knows what the pass codes are or where to find them is seemingly too stressful.
Obviously I don't keep the passwords with this list but they wouldn't be needed anyway in the event of my death as the funds would be transferred to the executor, then on to my dependants.
Pit Pony said:
A question to those with multiple bank accounts.
How do you keep track ?
If you died would your loved ones have a clue where everything was.
I ask this because I thought it a good idea to set up a regular saver from our joint account into a side account with the same bank, putting in the max of £400 a month.
This is nominally because its paying over 6% interest, but also because I worked out that the things we don't buy every month, like insurance and holidays, actually comes to about £700 a month, but also that theoretical we should have a spare £600 but never seem to do.
I've explained it to my wife and she hates the idea of another account. What if you die? I'll not know where all the money is going.
Just making sure she knows what the pass codes are or where to find them is seemingly too stressful.
My wife and I are both in our early 80s and we are both aware that it's important to have somewhere full details of ALL relevant information that will be needed by our executors and, of course, the survivor on the first death. So, what is meant by ALL relevant details and how should it be recorded? There's quite a few examples available from insurance company websites under the general title of "After I'm gone" and they may be considered a reasonably good start but in practice they are nowhere near as comprehensive as what's required. So, several months ago, I started to develop a workbook to record all the relevant items. It is password protected. Over time this workbook has moved on and now has 12 separate spreadsheets covering all the major headings. It not only covers bank accounts, but all financials, utilities, house matters, legal issues regular payments etc. It is quite a substantial workbook now.How do you keep track ?
If you died would your loved ones have a clue where everything was.
I ask this because I thought it a good idea to set up a regular saver from our joint account into a side account with the same bank, putting in the max of £400 a month.
This is nominally because its paying over 6% interest, but also because I worked out that the things we don't buy every month, like insurance and holidays, actually comes to about £700 a month, but also that theoretical we should have a spare £600 but never seem to do.
I've explained it to my wife and she hates the idea of another account. What if you die? I'll not know where all the money is going.
Just making sure she knows what the pass codes are or where to find them is seemingly too stressful.
The workbook shows all suppliers/providers, account numbers etc, but not actual values for each account, nor any passwords. All this information is kept in a different place.
One issue with having so much detail is that quite frequently it needs updating; there's no point in having the workbook without doing this. I do the updating as and when something new arrives, so I have a work in progress version. At the end of each quarter I produce the final version at that time and send a copy to my executors so they always have access to the latest version which is no more than 3 months old.
In summary, getting to this stage has taken quite a lot of work and it's amazing how much information needs to be recorded to make life easier for one's survivors. I suspect that even now there's items that I have not realised need adding to the workbook.
R.
Pit Pony said:
A question to those with multiple bank accounts.
How do you keep track ?
If you died would your loved ones have a clue where everything was...
It's a good question. I found the banks are pretty good at helping you track stuff down but you still have to know which banks to ask.How do you keep track ?
If you died would your loved ones have a clue where everything was...
For us, all our accounts and balances are kept on a spreadsheet which Mrs durbs has access to.
We also use a password manager for all the login details, and they're shared between us so we can get into each other's accounts if we ever needed to. That also serves as another directory of what accounts we have (and have had in the past). You can also store account numbers and things in there as notes.
We had all our banking information, account numbers and password in a password manager that we both had access to, so that should the worse happen the other would be able to access everything.
There is also a basic list of institutions kept with a copy of the will, which is updated when they change.
There is also a basic list of institutions kept with a copy of the will, which is updated when they change.
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