What to do with a large-ish sum of cash for the short term?
Discussion
We have about £300k which is earmarked for a house extension and some other things, it's currently in a Natwest savings account earning pretty much nothing.
We will need about half of it in varying increments over the next 5 months, the rest can be left for about a year or so.
I don't want to invest it, the best cash account I can see is Marcus paying 1.5%, but I'm not sure how I feel about putting it all with one provider (even if that provider is Goldman Sachs).
Does anyone have any suggestions?
Thanks.
We will need about half of it in varying increments over the next 5 months, the rest can be left for about a year or so.
I don't want to invest it, the best cash account I can see is Marcus paying 1.5%, but I'm not sure how I feel about putting it all with one provider (even if that provider is Goldman Sachs).
Does anyone have any suggestions?
Thanks.
XJ75 said:
We have about £300k which is earmarked for a house extension and some other things, it's currently in a Natwest savings account earning pretty much nothing.
We will need about half of it in varying increments over the next 5 months, the rest can be left for about a year or so.
I don't want to invest it, the best cash account I can see is Marcus paying 1.5%, but I'm not sure how I feel about putting it all with one provider (even if that provider is Goldman Sachs).
Does anyone have any suggestions?
Thanks.
So right now you have £300k with one single provider (Natwest), but you are not sure about how you feel putting this all with one other provider (Goldman Sachs)?! We will need about half of it in varying increments over the next 5 months, the rest can be left for about a year or so.
I don't want to invest it, the best cash account I can see is Marcus paying 1.5%, but I'm not sure how I feel about putting it all with one provider (even if that provider is Goldman Sachs).
Does anyone have any suggestions?
Thanks.
Nothing would really change!
The only risk you currently have is counter-party risk from Natwest. They are paying you peanuts for this.
GS will pay you more, but you could earn almost the same (whilst not exposing yourself to any risk) by spreading this money across the top 4 highest paying banks (with individual banking licences).
This is not one to over think!
Right now you can get 1:6 on BlowJob being the next UK pm.
So if you want to turn £300k into £350k by 22/7/19 then get down do willy hill's right now! (because after tonite's 2nd vote odds will likely shorten)
(£1k for the tip will be appreciated)
So if you want to turn £300k into £350k by 22/7/19 then get down do willy hill's right now! (because after tonite's 2nd vote odds will likely shorten)
(£1k for the tip will be appreciated)
Edited by selmahoose on Tuesday 18th June 17:58
JulianPH said:
So right now you have £300k with one single provider (Natwest), but you are not sure about how you feel putting this all with one other provider (Goldman Sachs)?!
Nothing would really change!
The only risk you currently have is counter-party risk from Natwest. They are paying you peanuts for this.
GS will pay you more, but you could earn almost the same (whilst not exposing yourself to any risk) by spreading this money across the top 4 highest paying banks (with individual banking licences).
This is not one to over think!
Good spot - I glossed over the details and importantly it's not all in the Natwest account yet (company liquidation ongoing at the moment and will complete in the next few weeks, then it will all be in the Natwest account, albeit for as little time as possible.Nothing would really change!
The only risk you currently have is counter-party risk from Natwest. They are paying you peanuts for this.
GS will pay you more, but you could earn almost the same (whilst not exposing yourself to any risk) by spreading this money across the top 4 highest paying banks (with individual banking licences).
This is not one to over think!
I noticed this which could be useful:
https://www.fscs.org.uk/your-claim/temporary-high-...
millen said:
I thought Marcus anyway has a limit of £100k per account, notwithstanding the lower FSCS compensation limit.
Well spotted.So across the wife and I, we could do 2 x £50k in Premium Bonds and 2 x £100k in Marcus.
Then only 2 x £15k wouldn't be covered by FSCS, but we would be covered for 6-months by their temporary high balance policy.
The FSCS limit is £85k per account.
So you and your wife (assuming separate accounts) could place £170k with Marcus and up to the same again with another bank (assuming separate - not joint - accounts) providing the second bank had a completely separate banking liecence (i.e. was not a subsidiary).
That is it. It is no more difficult than that.
Please don't pay someone to advise you on this. You do not need a complicated solution to an easy situation!
PM me if you like.
So you and your wife (assuming separate accounts) could place £170k with Marcus and up to the same again with another bank (assuming separate - not joint - accounts) providing the second bank had a completely separate banking liecence (i.e. was not a subsidiary).
That is it. It is no more difficult than that.
Please don't pay someone to advise you on this. You do not need a complicated solution to an easy situation!
PM me if you like.
PS In the past two weeks I've had to 'renew' 3 savings accounts whose initial 12-month 'bonus' rate ended. Even though it's only 15 minutes or so each time it is a right hassle and effectively a tax on those who don't calendarise expiry dates. Nationwide seems to be the only one that doesn't penalise loyalty. Must be a real pain for those with substantial cash.
Shouldn't grumble I suppose - without this dubious practice headline rates would have to be even lower to restore margins.
Shouldn't grumble I suppose - without this dubious practice headline rates would have to be even lower to restore margins.
If (and it's a big if) this platform does what it says on the tin then it's perfect for your needs:
https://flagstoneim.com
Spreads your cash around best buy savings accounts, keeping it all under the £85k FSCS limit.
https://flagstoneim.com
Spreads your cash around best buy savings accounts, keeping it all under the £85k FSCS limit.
NickCQ said:
If (and it's a big if) this platform does what it says on the tin then it's perfect for your needs:
https://flagstoneim.com
Spreads your cash around best buy savings accounts, keeping it all under the £85k FSCS limit.
Looks interesting. Does anyone have any experience of it? Safe/Protected?https://flagstoneim.com
Spreads your cash around best buy savings accounts, keeping it all under the £85k FSCS limit.
shopper150 said:
NickCQ said:
If (and it's a big if) this platform does what it says on the tin then it's perfect for your needs:
https://flagstoneim.com
Spreads your cash around best buy savings accounts, keeping it all under the £85k FSCS limit.
Looks interesting. Does anyone have any experience of it? Safe/Protected?https://flagstoneim.com
Spreads your cash around best buy savings accounts, keeping it all under the £85k FSCS limit.
NickCQ said:
If (and it's a big if) this platform does what it says on the tin then it's perfect for your needs:
https://flagstoneim.com
Spreads your cash around best buy savings accounts, keeping it all under the £85k FSCS limit.
I'd also be interested in hearing thoughts / experiences on the Flagstone platform against say Raisin, HL or any similar..https://flagstoneim.com
Spreads your cash around best buy savings accounts, keeping it all under the £85k FSCS limit.
I do like the idea of a one-stop-shop which enables cash to be spread across a number of banks where no single account exceeds the FSCS protected limit.
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