Deposit Accounts 600k

[dunkind]

alscar said:

Ken_Code said:

Shat a very strange request. This absolutely sounds like it’s money laundering and / or fraud.

Why on Earth do you want to do this?

Not sure using Bank account's or NSI would be a good way to " wash " -surely Crypto would have been mentioned ?
Perhaps the OP doesn't like the idea of the Stock Market,has just sold his company and likes the idea of cash where he can see it !

Absolutely @alscar. I’m at a point where I just want to see my cash. I’ve been living in Yorkshire for years and I’ve become tight. I’m happy to spend a grand on a bottle of wine in a restaurant but woe betide you if you put too much water in the kettle to boil if you only want one cup!!

[paulguitar]

dunkind said:

I’m happy to spend a grand on a bottle of wine in a restaurant

[dunkind]

paulguitar said:

I like guitars as well

[paulguitar]

dunkind said:

paulguitar said:

I like guitars as well

Have you bought any wildly expensive ones?


My dad had a few, including a particularly lovely Gibson L5.

[OddCat]

LooneyTunes said:

OddCat said:

Try Raisin. Hub account from which you can access dozens of sub accounts with different banks.

Very simple and very easy. All viewed in one place. Takes all the aggro out of it as, once you are validated by Raisin, the sub banks open accounts for you without any ID malarkey etc.

With this, and other deposit aggregators, make sure you understand and are happy with your counterparts risk (with the platform).

I have yet to find one I would use.

Edited by LooneyTunes on Friday 3rd May 05:36

....but the money sits with the various sub accounts not with Raisin (other than momentarily) ?

[Ken_Code]

alscar said:

Not sure using Bank account's or NSI would be a good way to " wash " -surely Crypto would have been mentioned ?
Perhaps the OP doesn't like the idea of the Stock Market,has just sold his company and likes the idea of cash where he can see it !

It’s possible, but sticking it all on deposit for several years be an unusual choice.

I know it’s likely all above board, but it’s a very unusual request.

[Ken_Code]

dunkind said:

Hi Ken, I’m assuming the comments are for me? I’ve shat a few strange requests in my time.

Making use of some funds that are available, I invested money from my trust fund and this is the interest I received on the investment, less taxes.

Edited by dunkind on Friday 3rd May 12:31

£600,000 interest suggests that you had well over five million pounds on deposit. Once you have that amount, although there’s no harm asking for input here you should also be involving a lawyer and accountant in your decision-making.

I’m not allowed to give financial advice, but can I suggest that for here you set out what it is that you want to achieve with the deposits, and that you ask the fund trustees to recommend some professionals to speak to for advice.

It’d be quite a specific set of needs that would suggest placing so much money on deposit with high street banks for over a year.

[alscar]

Ken_Code said:

It’s possible, but sticking it all on deposit for several years be an unusual choice.

I know it’s likely all above board, but it’s a very unusual request.

Would agree it’s possibly unusual but would also depend upon overall assets too.

[LooneyTunes]

OddCat said:

LooneyTunes said:

OddCat said:

Try Raisin. Hub account from which you can access dozens of sub accounts with different banks.

Very simple and very easy. All viewed in one place. Takes all the aggro out of it as, once you are validated by Raisin, the sub banks open accounts for you without any ID malarkey etc.

With this, and other deposit aggregators, make sure you understand and are happy with your counterparts risk (with the platform).

I have yet to find one I would use.

Edited by LooneyTunes on Friday 3rd May 05:36

....but the money sits with the various sub accounts not with Raisin (other than momentarily) ?

Yes. But whose system do you think handles all of the movement instructions and an often a good chunk of the reporting ? That’s right, usually the aggregator’s.

The IT/ops counterparts risk is not insignificant, yet most of these companies are small and generally not in the best financial health.

This sort of thing fits into an areas I know pretty well, and I’ve yet to find one that I’d put my money in.

[OddCat]

LooneyTunes said:

OddCat said:

LooneyTunes said:

OddCat said:

Try Raisin. Hub account from which you can access dozens of sub accounts with different banks.

Very simple and very easy. All viewed in one place. Takes all the aggro out of it as, once you are validated by Raisin, the sub banks open accounts for you without any ID malarkey etc.

With this, and other deposit aggregators, make sure you understand and are happy with your counterparts risk (with the platform).

I have yet to find one I would use.

Edited by LooneyTunes on Friday 3rd May 05:36

....but the money sits with the various sub accounts not with Raisin (other than momentarily) ?

Yes. But whose system do you think handles all of the movement instructions and an often a good chunk of the reporting ? That’s right, usually the aggregator’s.

The IT/ops counterparts risk is not insignificant, yet most of these companies are small and generally not in the best financial health.

This sort of thing fits into an areas I know pretty well, and I’ve yet to find one that I’d put my money in.

So they're lying ?

[sleepezy]

LooneyTunes said:

The IT/ops counterparts risk is not insignificant, yet most of these companies are small and generally not in the best financial health.

I am with the looney one on this - I looked at the consolidator accounts in detail a short while back - while all the main ones do always keep your money either in an account in your name, or in trust on your behalf while in the hub account, the way they operate the hub accounts could be problematic.

The issue is if the platform fails and an Administrator (probably a Special Administrator) is appointed. Whilst no third party creditors would have a call on your money, so it's safe from that perspective, it's not without issues:
1 The Administrator's costs specifically in manging the hub account would be payable from the funds held in the accounts
2 There is likely to be a long delay between funds maturing and flowing into the hub and those funds flowing out to the beneficiaries - the Administrator will be required to verify the payments are going to the correct party and likely have to wait to see what a fair application of costs across the accounts would be

I read the literature regarding proposed statutory requirements in having a procedure in place to ensure funds are distributed rapidly - at the moment that's just a piece of paper (or at least was when I looked not all that long ago).

It doesn't help that I work close to the insolvency sector and have direct experience of what happens when a financial institution fails.

If you think point 1 is unfair - someone has to pay the Administrators - if they don't get paid then no distribution of funds would be made, and it's not reasonable to suggest the costs of verifying the payments come from the pool of assets realised as that would be to the detriment of the other creditors.

[Seventyseven7]

dunkind said:

Hi
Looking for some advice before approaching the relevant/suggested companies.

I’m looking to deposit around 600k into a number of accounts, probably in joint names to a maximum of 170k per account. Probably leave the money in the accounts for five years.
Joint names don’t pay any tax currently, no outstanding debts.
Each subsequent year I will want to pay an additional 80k into an account, so will need to open further accounts to manage this.
1. Which bank accounts should I be looking at?
2. What rates of tax is payable on the interest.
3. What companies do you recommend that could manage the accounts and the on going deposits?
4. Can I withdraw the interest annually?
5. Not interested in pensions, stocks, shares etc.
Any help very much appreciated.

I have a similar amount in several accounts for FSCS protection.

I used Hargreaves Lansdown - Active Saving Account.

All the accounts are opened for you. A single account/app to manage everything. Yearly tax account sent to you. Interest paid monthly, money accessible immediately.

Would recommend it, never had a problem.

[OddCat]

sleepezy said:

LooneyTunes said:

The IT/ops counterparts risk is not insignificant, yet most of these companies are small and generally not in the best financial health.

I am with the looney one on this - I looked at the consolidator accounts in detail a short while back - while all the main ones do always keep your money either in an account in your name, or in trust on your behalf while in the hub account, the way they operate the hub accounts could be problematic.

The issue is if the platform fails and an Administrator (probably a Special Administrator) is appointed. Whilst no third party creditors would have a call on your money, so it's safe from that perspective, it's not without issues:
1 The Administrator's costs specifically in manging the hub account would be payable from the funds held in the accounts
2 There is likely to be a long delay between funds maturing and flowing into the hub and those funds flowing out to the beneficiaries - the Administrator will be required to verify the payments are going to the correct party and likely have to wait to see what a fair application of costs across the accounts would be

I read the literature regarding proposed statutory requirements in having a procedure in place to ensure funds are distributed rapidly - at the moment that's just a piece of paper (or at least was when I looked not all that long ago).

It doesn't help that I work close to the insolvency sector and have direct experience of what happens when a financial institution fails.

If you think point 1 is unfair - someone has to pay the Administrators - if they don't get paid then no distribution of funds would be made, and it's not reasonable to suggest the costs of verifying the payments come from the pool of assets realised as that would be to the detriment of the other creditors.

Well, those don't seem like significant risks. Nor significant costs if things do go wrong. Certainly not enough to put someone off using them.

Nothing is absolutely risk free.

I do sometimes wonder how some PH'ers cross the road withiut a full indeoendent risk assessment before stepping off the kerb

[1690cc]

Seventyseven7 said:

I have a similar amount in several accounts for FSCS protection.

I used Hargreaves Lansdown - Active Saving Account.

All the accounts are opened for you. A single account/app to manage everything. Yearly tax account sent to you. Interest paid monthly, money accessible immediately.

Would recommend it, never had a problem.

Used HL active savings for a few years also. Really quick and easy to deposit and withdraw large movements in and out are stress free and straightforward.
That is until they get into my HSBC current account at the other end who seem to st themselves if I want to move more than £50 in one go and route me through a ridiculous fraud department where english is a second language.

[dunkind]

Seventyseven7 said:

I have a similar amount in several accounts for FSCS protection.

I used Hargreaves Lansdown - Active Saving Account.

All the accounts are opened for you. A single account/app to manage everything. Yearly tax account sent to you. Interest paid monthly, money accessible immediately.

Would recommend it, never had a problem.

Thanks very much.

[LooneyTunes]

OddCat said:

So they're lying ?

I am not going to comment on any aggregator specifically but most are small companies, often loss making, with little track record and light on liquidity.

An aggregator platform, whether the customer facing interface or the back end systems themselves, is an extremely attractive target for cyber attack.

Try and find an aggregator that specifically acknowledges either one of those factors or explains to prospective clients addresses how they actually address them. I doubt you can. Instead you will see much emphasis placed on FSCS.

OddCat said:

Well, those don't seem like significant risks. Nor significant costs if things do go wrong. Certainly not enough to put someone off using them.

Nothing is absolutely risk free.

I do sometimes wonder how some PH'ers cross the road withiut a full indeoendent risk assessment before stepping off the kerb

Good that you are happy with them, but others should due their own diligence.

[oddman]

1690cc said:

Seventyseven7 said:

I have a similar amount in several accounts for FSCS protection.

I used Hargreaves Lansdown - Active Saving Account.

All the accounts are opened for you. A single account/app to manage everything. Yearly tax account sent to you. Interest paid monthly, money accessible immediately.

Would recommend it, never had a problem.

Used HL active savings for a few years also. Really quick and easy to deposit and withdraw large movements in and out are stress free and straightforward.
That is until they get into my HSBC current account at the other end who seem to st themselves if I want to move more than £50 in one go and route me through a ridiculous fraud department where english is a second language.

Thanks for that. Looks very useful.

[OddCat]

LooneyTunes said:

OddCat said:

So they're lying ?

I am not going to comment on any aggregator specifically but most are small companies, often loss making, with little track record and light on liquidity.

An aggregator platform, whether the customer facing interface or the back end systems themselves, is an extremely attractive target for cyber attack.

Try and find an aggregator that specifically acknowledges either one of those factors or explains to prospective clients addresses how they actually address them. I doubt you can. Instead you will see much emphasis placed on FSCS.

OddCat said:

Well, those don't seem like significant risks. Nor significant costs if things do go wrong. Certainly not enough to put someone off using them.

Nothing is absolutely risk free.

I do sometimes wonder how some PH'ers cross the road without a full independent risk assessment before stepping off the kerb

Good that you are happy with them, but others should due their own diligence.

Okay so now they're a cyber attack risk . I'd better ask them what protections they have against asteroid hit while I'm at it

[LooneyTunes]

OddCat said:

Okay so now they're a cyber attack risk .

Yes, they are, and for reasons that are obvious and not difficult to understand.

Hub role, small (lightly resourced) firms, likely immature systems and processes (around prevention, detection, and response) all make for attractive targets, especially vs the banks themselves.

I could go on to discuss the way that beneficiaries are identified and the IT/cyber risks associated with that, but it's apparent that even if I did you'd be unwilling to concede that there's any material cyber/counterparty risk.

[1690cc]

LooneyTunes said:

Yes, they are, and for reasons that are obvious and not difficult to understand.

Hub role, small (lightly resourced) firms, likely immature systems and processes (around prevention, detection, and response) all make for attractive targets, especially vs the banks themselves.

I could go on to discuss the way that beneficiaries are identified and the IT/cyber risks associated with that, but it's apparent that even if I did you'd be unwilling to concede that there's any material cyber/counterparty risk.

I know little of the world of security etc but I thought HL were quite a large company and therefore would be well resourced in this area. As I understand it you retain FCSC protection at all times as your money moves through their hub and onto the bank providing the end product you are placing it with and as long as you never have more than £85,000 or £170,000 for joint accounts on the move at any one time you are all good.
I use it (and Raisin to a lessor extent) because it was an easy way to split cash savings across multiple accounts and keep below the £85,000 per provider.
Also, over the last 4 years they have generally had rates on offer either matching the best buy elsewhere or within a whisker of it so I wasn't losing out for the convenience.

Is there a way to explain how I am exposed to losing any of my cash savings, please bear in mind that I am a gardener and hence have absolutely zero financial knowledge. (my grass is looking nice though)