Current savings rates...
Looks like I'll get a chunk of £s (about £180k) from my portion of mum's house in about eight weeks... just asked the chap who's going to eventually be doing financial stuff for me, and he suggested an instant access savings account from Marcus GS to dump it in in the short term... currently at 4.75%, while we look at longer term strategies for my boomer retirement plan... any views on Marcus? Better than leaving it in a current account, for sure.
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It's fine. It's goldman sach's retail bank.
There is a chance they will pull the plug as it's not gone well for goldman but in the meantime they're pretty competitive rates wise.
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Thanks RC. Brief reading suggests it's solid enough. Easy application process, managed by an app, I guess they do the KYC stuff somehow (none of the grilling I had from TorFX). I can't see from that if it has the same guarantee as other retail banks about safety of funds (up to the cap), but I guess it must be, if a retail bank in the UK.
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Personally I would just stick it in an NSA savings account, but that is the lazy approach.
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Don't go above the FSCS £85k limit, just in case. Have a look through likes of MoneySupermarket website for comparisons on rates.
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Yeah, that's the figure that just makes be slightly twitchy.
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Hence my advice about NSI where the limit is £2m.
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Hmm, currently 1% lower than Marcus, but as you say, fully protected, and I've already got the PBs with them. Will mull.
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I might put the £85k into Marcus, and the rest into NS&I.
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Sure, so you can calculate whether the additional admin is worth it. Expect to change banks every year to maintain the premium.
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Was going to say the same. Split into multiple accounts. Spread betting if you wish. 😉
Edit:- 1x £20k cash ISA, 2x £80k savings but check all the banks are indeed separate and not affiliated.
The above may be fact, or fiction, I may be serious, I may be jesting.
I am not sure. You have no chance.Veronese68 wrote:PB is the most sensible person on here.1 -
It probably won't be massively long, but as both accounts are set up I'll probably do the £85k with the extra 1% all the same for 10 mins work. If it stayed there for 12 months and got me £850 more, that's £5100 per hour.
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Yep stick £20k of it in an ISA because that much money will earn interest over the personal savings allowance (£500/year for higher rate, £1000 for lower) so you'll need to pay tax on the interest. Though check rates because the cash ISA rate is often less competive (so you might still be better off paying tax).
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For once I agree with both Blakey and Loon at the same time 🙂
"I spent most of my money on birds, booze and fast cars: the rest of it I just squandered." [George Best]0 -
I'd be surprised if it takes you that little time. They should have a KYC process. Nonetheless, I'm sure it will given you a decent hourly rate and you can shame me for laziness.
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I opened a new account this morning. Doubt it took me 10 minutes. Life is so much easier these days.
The above may be fact, or fiction, I may be serious, I may be jesting.
I am not sure. You have no chance.Veronese68 wrote:PB is the most sensible person on here.0 -
I thought the same but then I wasn't depositing £80k +
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Maybe I'm out of touch.
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As I say, I was grilled on the phone for TorFX after the initial application, but the Marcus a/c took about 5 mins, and no noticeable KYC elements. TBH, was surprised there wasn't more.
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Marcus GS seems to get a good review here: https://www.moneysupermarket.com/savings/marcus/
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All set up with Marcus - less than 10 mins total, just had to wait overnight for it to be confirmed, and then I had to read, download and accept T&C's.
I think the money laundering thing is 'covered' by them only accepting funds from my own nominated UK bank account, so I guess they are relying on that bank having done the KYC stuff on their behalf.
Savings rate currently 4.75%
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They've probably done a credit check on you as well as part of the KYC, but that feels a bit light to me. They're supposed to know their customer, so at the very least I would expect you to provide photo ID and proof of address or maybe that was part of your 10 mins.
The thing with compliance is all the responsibility sits with one very well paid individual. He/she risks prison in exchange for a high income.
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Yeah, feels light to me as well. No photo ID or proof of address.
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Everyone does online KYC / Money Laundering checks.
Sensible advice above regarding not going over the £85,000 FSCS limits.
www.moneyfacts.co.uk is another good place to compare rates available.
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Coventry Building Society are one to keep an eye on as well. They regularly update their products, I managed to open an easy access saver at 5.15% earlier this year.
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I was kinda guessing that the automated checking available now (I had to say how long I'd been living at my current address) was likely to pick up anything dodgy.
I think my middle ground is £85k with Marcus and the rest with NS&I. As I say, it's not long term, as I'll probably be doing something a little more creative via my financial bod in due course looking at the longer term.
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@briantrumpet you inspired me to move some money. I think part of your time estimate that you haven't factored in is the time to close the account. To close an account I had to download all the statements and screen shot the current balance, so I have the details for my tax return. Then the option to close didn't appear online, so I had to call them and go through the whole process on the phone. Finally, I have more stuff to remember for my tax return.
So, if you include time to research the best savings rate, time to open the account, time to close the account and time to deal with it on your tax return, I reckon it could be more than an hour. Your pre-tax hourly rate might be as low as £850 on that basis.
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Must admit I was surprised how quick and easy it was to open up an ISA account online a few months ago, albeit with my existing bank, easily less than 10mins.
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I do remember clearly, about when I wanted to close my Midland Bank business account (in about 1987) after they right royally screwed up some standing orders: literally just one signature, and I walked out with about £3000 in £50 notes, walked down the middle of Exeter High Street, cash in my hand deep in a pocket, to Abbey National (as it was), and paid it into my personal account.
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You lucky lucky... walking down the streets with your pockets stuffed.
Online banking entities (Aldermore, Atom... and on along the alphabet) are configured to make opening, operating and closing accounts simplez. The trad banks and BSs a bit less so.
When my ex and I split and I had the forced sale of the 'forever home' then the move into the rental hotel at the start of the covid world back in 2020 for what became 2 years, I had the sale funds spread across multiple accounts. Even had a sharia, no interest (🤔) account. I still have some of those accounts active, some I have closed. NS&I were useful originally with the higher guarantee level but they then cut their rates significantly cf others, and were also a PITA to use for transactions. I used Hargreaves Lansdown Active Savings for some, easy to move funds in around and out as rates offers varied. Yorkshire BS were ok, but as a trad outfit, not as smooth online as e.g. Atom.
Still operating online accounts multiple, and the admin effort required is minimal. And I have never rolled up to a counter in a branch, anywhere...
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Have transferred £50 to the new account just to make sure everything is working. Read the reviews of the Marcus app, and it sounds a bit useless, so will stick to the browser version, not least as it's not an account I'll be using for day-to-day banking.
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