Hi, I have just sold my flat and have £60,000 to put into a savings account, I am currently looking for a new property and i will use this money for a deposit, I am looking for a property up to £200,000, Should i split the money and use two savings accounts?, I would also need instant access as well, Any ideas? Thank You in advance

Don't put more than £30,000 or £33,000 - whatever the guarantee if Bank collapses limit is, in any one account.

Get some Accounts opened as soon as possible. E-savings Accounts linked to online Current Accounts offer reasonable rates from some Banks and the money is easily accessible if you don't want to tie up for too long.

Have a look at the Savings Comparators offered by sites such as this or look at the Financial Institutions and see what they offer. Some offer higher rates for higher saving amounts, but many offer better rates for regular savings with no withdrawals or limited withdrawals but your money is then tied up when you might wish to use it and will be penalised to withdraw early, losing the benefit of the higher rates you would have got if you could have left the money for the fixed period?

It's your choice..

Hi,

i too maybe about to have some cash from a sale, fingers crossed, and for a few months want to invest, how can we tell what the 'safe' limit is in each bank/building society? and if a bank and a building society are both ultimately owned by the one main financial institution are we covered for both or just the one secure amount of say £30,000

Hi

I have just looked on the Financial Service Authority (FSA) website and followed the links through on Savings. Apparently the sum guaranteed is £35,000.00 if a Bank or Financial Institution registered with the FSA in the UK goes under.

So it would appear that the sum guaranteed is £35,000 per Bank or Institution no matter how many Accounts that Total Amount is spread across, within that Bank or Institution.

I got this info having followed this link - paste it into your browser

http://www.moneymadeclear.fsa.gov.uk/products/savings/savings.html

or simply follow through the links on Savings from the FSA website yourself.

So to summarise do not put more than £35,000 into any one Bank or Institution! And you will have to check that any place you intend to invest is not a subsidiary or part of anywhere else that you might already have money invested.

All Trading Companies in the UK have to publish their details, so although sometimes it is not easy, you can generally find out whether a Company is part of another Company by searching. Although not easy these days with all the tie ups, share buys in, cross-deals and so on.

Maybe we should all be checking at Companies House and doing Company Searches, not cheap, just to see who it is safe to invest with. I see a minefield. Be careful.

I am in a very fortunate position and have got surplus cash dotted all over the place.

I am very wary of the £35k limit per institution so spread across as many as possible and being mindfull of 'linked' banks ie RBS and Birmingham Midshires. (I am sure RBS own B'Ham Mid but maybe mistaken)

The problem is how far do you go? I have placed the most cash with Northern Rock as it is now 'owned' by the Bank of England or as good as.

Overall there are a great range of products out there (thanks moneysupermarket) which are easy enough to get online but what about all the NS & I products for secutity and returns? I ahev a very large tax bill in January so need to be liquid for then but have 6 months to play with.

Any suggestions?

Thanks

Hi

I have also been concerned recently with how to spread my savings, the following link shows who owns whom, it is definantly worth looking into.. although I suspect a more pressing question is which saving company will withstand the current climate.

Good luck.

http://www.moneyfacts.co.uk/Savings/articles/who-owns-whom-listings.aspx

Great link above to check.

The FSA rep rang me today in answer to the enquiry I had left as to how to find out where it was safe to park one's savings.

The FSA told me that they Licence each Banking Institution to accept deposits and that Compensation of £35,000.00 is limited to that no matter how many Accounts one holds and no matter how much - even where spread across subsidiaries and linked Banks/Savings Institutions.

The example given was Royal Bank of Scotland RBS and Halifax Bank (formerly Building Society), which have ONE LICENCE between them. So do not make the mistake of investing £35,000.00 or more in RBS and a further £35,000.00 or more, in Halifax Bank, since if this group goes down only one payout of £35,000.00 will be made.

Apparently these Licences can be checked up on the FSA website, or using the link above provided by pawsnjaws.

Sorry no info on National Savings & Investments you will have to look on their website. I am sure they must have one.

Sorry meant to say "no matter how many Accounts one holds .. IN ONE SINGLE LICENCE HOLDING INSTITUTION OR BANK ... and no matter how much ...."

That is one payout of £35,000.00 for each SINGLE Licence holding Bank or Institution, even though Accounts with various subsidiaries, such as the RBS and Birmingham Midshires or whomever it was who recently took over that Building Society.

I know that the Nationwide took over somewhere last year and is about to or has just taken over another couple of smaller Banks and Societies.

It will therefore be important for any investors with any of these overtaken/undertaken or joined up Banks etc., to be constantly aware to ensure that not more than £35,000.00 is left in any group Company!!!

Northern Rock is currently in a special position, having been effectively taken over by the Government, but I reckon there will be a divestment of that Company as soon as it can stand on its' own two feet. So investors will have to be wary and alert to the changes.

Basically investors beware, not more than £35,000.00 in any one SINGLE Licence holding Investment group.

Beware of rubbish info on this thread.

1. Tony Richards message - "being mindfull of 'linked' banks ie RBS and Birmingham Midshires" RBS are not linked to Birmingham Midshires (HBOS are)

2. HelpIfUCan - "Royal Bank of Scotland RBS and Halifax Bank (formerly Building Society), which have ONE LICENCE between them" again you are mixing up RBS (Royal Bank of Scotland) and HBOS (Halifax Bank of Scotland).

This post has been moderated. Please ensure you read the Moneysupermarket.com User Community Standards and Terms of Service before posting. Thanks.