Safeguarding future house deposit over 3 banks accounts
Discussion
Chaps,
I would like to split some money over 3 joint bank accounts for 1-3 years.
This is so each account will be below the bank compensation limit for a joint account.
It is intended to contribute towards a house deposit in future.
Therefore, return needs to only beat house price increase/decrease (i.e. not too concerned about interest as mitigating against capital loss - this will be for family home so important not to lose it!).
I am more concerned about remaining liquid and minimising risk.
Question: Which banks would you go for and why?
My thoughts are:
1). HSBC
2). Barclays
+ one other.
Many thanks in advance for your thoughts and advice.
I would like to split some money over 3 joint bank accounts for 1-3 years.
This is so each account will be below the bank compensation limit for a joint account.
It is intended to contribute towards a house deposit in future.
Therefore, return needs to only beat house price increase/decrease (i.e. not too concerned about interest as mitigating against capital loss - this will be for family home so important not to lose it!).
I am more concerned about remaining liquid and minimising risk.
Question: Which banks would you go for and why?
My thoughts are:
1). HSBC
2). Barclays
+ one other.
Many thanks in advance for your thoughts and advice.
DayTrader said:
A joint account has double the limit - so £170k.
Doesn't matter who you go with - I'd probably pick NatWest or RBS for the third if you need it.
Many thanks for reply DayTrader.Doesn't matter who you go with - I'd probably pick NatWest or RBS for the third if you need it.
Would you have any concern over NatWest / RBS over exposure to UK mortgages or Euro debt?
Do you think they are "solid" enough banks?
Many thanks for taking the timne to reply.
Edited by jdw1234 on Tuesday 10th January 15:03
jdw1234 said:
Many thanks for reply DayTrader.
Would you have any concern over NatWest / RBS over exposure to UK mortgages or Euro debt?
Do you think they are "solid" enough banks?
Many thanks for taking the timne to reply.
I wouldn't worry about it - the money is government backed so you can't lose a penny even if they go completely tits up - which I don't think they will.Would you have any concern over NatWest / RBS over exposure to UK mortgages or Euro debt?
Do you think they are "solid" enough banks?
Many thanks for taking the timne to reply.
Edited by jdw1234 on Tuesday 10th January 15:03
As all the major ones are covered by the government guarantee (up to £85k per person per account) then you should simply go with the ones paying the best interest as your money is technically no safer in any particular bank. Some banks may be stronger than others but as they are all backed equally by the government then you'd only lose your money if the government was insolvent. If that happens the frankly we are all up the creek without a paddle.
I know none pay particular good interest rates but last time I looked Northern Rock and Santander were paying the best rates, HSBC, RBS and Barclays were paying some of the worst.
I know none pay particular good interest rates but last time I looked Northern Rock and Santander were paying the best rates, HSBC, RBS and Barclays were paying some of the worst.
Santander is about the worst on the high street for risk. Yes the government will step in, but they're horrendously exposed to Spain, and borrowed a lot of money to expand through acquisition. Nice returns maybe, but you'll pay it all back in tax if the government has to pay you your money back.
davepoth said:
Santander is about the worst on the high street for risk. Yes the government will step in, but they're horrendously exposed to Spain, and borrowed a lot of money to expand through acquisition. Nice returns maybe, but you'll pay it all back in tax if the government has to pay you your money back.
makes no sense, deposits are protected. risk doesn't come into it. I believe they even pay the interest up front. zero risk.
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