Best savings account?

[mattyfez]

Which is exactly the problem with the Yoto “bank” fiasco.

Apart from it's American, so not covered by the UK Financial Services Compensation Scheme (FSCS). So it's something to check when opening an account, more info here:

Are my savings safe?

Check the safety of your savings bank by bank using the Money Saving Expert safe savings checker tool.

www.moneysavingexpert.com

 

[Raymond Lin]

Apart from it's American, so not covered by the UK Financial Services Compensation Scheme (FSCS). So it's something to check when opening an account, more info here:

Are my savings safe?

Check the safety of your savings bank by bank using the Money Saving Expert safe savings checker tool.

www.moneysavingexpert.com

I know it's American. I know it is not FSCS.

It is the principle of the way it is operated I am talking about. What is the link between Chips and Clear Bank? The Yotta episode demonstrated that the issue and problems can arise there and then everybody blames everybody.

If you go to Clear Bank to withdraw, do you think they will give you your money if Chip's platform stops working or would Clear Bank tell you to go away and say "Go to Chips, your account is with them."

Will FSCS give you the money back because the money is in Clear Bank and Clear Bank hasn't failed technically?

 

[VaderDSL]

Just a quick Q regarding the FSCS, I think I understand that the £85k limit is shared, so if I had say for example £75k in an ISA with say Santander and say £50k in a lifetime ISA with moneybox, £15k may not be covered by the FSCS if as Moneybox advises :

The banks we use change over time. The banks we currently use are:

• Clydesdale Bank PLC
• HSBC Bank PLC
• Santander UK PLC
• Barclays Bank PLC
• First Abu Dhabi Bank P.J.S.C.
• Qatar National Bank (Q.P.S.C.)
• National Westminster Bank PLC
• Bank of Scotland PLC
• Lloyds Bank PLC
• The Bank of New York Mellon, London Branch

However, we will never hold more than 50% of the total funds with a single bank at any given moment.

Just double checking this is one of the scenarios where I should reach out to them as they advise customers can do so to see where the LISA is beng held. If it is with a bank not owned by Santander then all would be good and would still be under the £85k limit. If it is with Santander then I might want to look at options to minimse the risk to that £15k, as an example.

 

[200sols]

Just a quick Q regarding the FSCS, I think I understand that the £85k limit is shared, so if I had say for example £75k in an ISA with say Santander and say £50k in a lifetime ISA with moneybox, £15k may not be covered by the FSCS if as Moneybox advises :



Just double checking this is one of the scenarios where I should reach out to them as they advise customers can do so to see where the LISA is beng held. If it is with a bank not owned by Santander then all would be good and would still be under the £85k limit. If it is with Santander then I might want to look at options to minimse the risk to that £15k, as an example.

Why put yourself in that situation, just use a proper bank instead of intermediaries.

 

[Slam62]

Um the 85k is per institution and double if it’s a joint account.

 

[VaderDSL]

Why put yourself in that situation, just use a proper bank instead of intermediaries.

I don't get to choose with the Lifetime ISA. It goes to Moneybox who stick it in whatever bank they are using that week/month/year.

Um the 85k is per institution and double if it’s a joint account.

As I mention, Moneybox will randomly use whatever bank from that list and it will change. So one year it might all be with different institutions, another year it might all be unknowingly be with one bank.

I was just wanting to confirm this one one of those scenarios where lack of info from say Moneybox may put me in a position where a certain % may be unprotected?

 

[Slam62]

I don't get to choose with the Lifetime ISA. It goes to Moneybox who stick it in whatever bank they are using that week/month/year.



As I mention, Moneybox will randomly use whatever bank from that list and it will change. So one year it might all be with different institutions, another year it might all be unknowingly be with one bank.

I was just wanting to confirm this one one of those scenarios where lack of info from say Moneybox may put me in a position where a certain % may be unprotected?

Oh ok best not risk it.

 

[mattyfez]

As long as they are not linked, check here https://www.moneysavingexpert.com/savings/safe-savings/#whatcounts and all covered under FSCS then you are ok with upto £85k in each....unless the UK government/Bank of England goes bust, in which case we're all screwed anyway.

 

[Disco_P]

@Raymond Lin does raise a good point with the Yotta situation. People's funds are safe because they have something similar to FSCS but they are frozen cause the party's accounting records don't match up and they are blaming each other.

So in the UK, what would happen to us if chip & clearbank fell out or T212 & JP Morgan?

 

[HungryHippos]

It's probably an untested concept really, I'd hope that the UK legal system would have a way of stepping in and forcing release of funds, or the funds are mapped and provable somehow and deposited into accounts that get mapped 1:1 to the Trading 212 or Chips accounts etc.

If not then yes some argument perhaps for trying to keep ISA in actual banks directly, but I don't think many pay that well.

 

[Raymond Lin]

It's probably an untested concept really, I'd hope that the UK legal system would have a way of stepping in and forcing release of funds, or the funds are mapped and provable somehow and deposited into accounts that get mapped 1:1 to the Trading 212 or Chips accounts etc.

If not then yes some argument perhaps for trying to keep ISA in actual banks directly, but I don't think many pay that well.

The problem with things like this is the law always are behind the tech, usually by years.

 

[413x]

Not good enough when the likes of chip are instant even on the weekends.
I keep all money in savings and transfer when needed, can't have long withdrawal times.

For me. 3 days is fine I don't use an isa for a quick in and out emergency fund.
But if you do then yeah you are probably needing to look at a much smaller selection of ISAs

 

[413x]

I have a credit card if needed with up to £2500 spend.
Although chip has never went down for me. There have been the odd day since they opened I guess but never effected me.

Also no I don't go through my savings each month. I put away £1000 or more and don't touch it. The rest of my wage is just for DD/general spending etc

I like the restriction I guess haha

Do I need that thing? Is it worth transferring money? No? Then you don't need it or want it enough

Yeah anything emergency is perfect for a CC. You have basically a month to gather the funds to pay it off.

 

[VaderDSL]

if anyone else is with Moneybox, I was surprised at how easy and quickly they responded to my message of where my LISA was deposited, they replied within 30 minutes in the app and gave me a breakdown of where the funds were, it was spread across the entire range of the banks on their list, some in single % and others 25%+

It turns out that not a small amount of my savings are above the FSCS limit, it’s not likely but may as well move some funds around, it’s not that difficult in the grand scheme.

 

[beachBOYken]

Just got the boosted saver option from Chase @5.1%. That'll do me.

Just after I moved my money from Chase! .

 

[Zatoichi.uK]

Just after I moved my money from Chase! .

Ha I'd just posted off forms for a new account too. Ah well....

 

[beachBOYken]

Ha I'd just posted off forms for a new account too. Ah well....

Ive not really checked but I presume 5.1% is one of the best around currently for regular savings.

 

[Raymond Lin]

Ive not really checked but I presume 5.1% is one of the best around currently for regular savings.

I think it is, besides the Post Office one (finished), Nationwide (not lump sum and only £200 max monthly deposits), Barclay's Rainy day (require current account and pay £5 a month which you get back and £5k max). Chase has little to no hoops to jump through besides it is time limited.

 

[Zatoichi.uK]

Ive not really checked but I presume 5.1% is one of the best around currently for regular savings.

It seems so.

 

[VaderDSL]

Moneybox has a 5% simple saver with £85k upper limit it seems, but it's just a 4% saver with an extra 1% bonus interest, but to qualify you have to have one of their existing accounts, LISA, rewards saver, etc.