News1 min ago
Financial Compensation Limit
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The max amount for this is £75000 but is it wise to have the max limit in your bank account or should it be lower to allow interest to be added?
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If you have £75k in the bank at the moment you will do well to get much more than 1% pa. Interest for a year is therefore £750 at best. Of course you can reduce the sum held as soon as it exceeds £75k but I would not worry too much. More important is to beware that many institutions share their licence (and hence their compensation limits) across their brands. For example, RBS and Natwest are sister banks owned by the same institution. If you had £50k in each you would only be covered for £75k if they went belly-up.
If ever a major UK bank went belly up and customers needed compensation I think we'd be in such a mess that i don't think a few hundred pounds would seem that important at the time. I am not convinced the government could really guarantee repayments if a few banks called upon the compensation fund at the same time.
You can get much more than 1% interest but apart from the Santander account where you can get 3% on £20000. most of those paying 2-6% require a regular saver account or limit the interest to the first few thousand pounds so if you want 2%+ you'd need to have numerous separate accounts with different banks
You can get much more than 1% interest but apart from the Santander account where you can get 3% on £20000. most of those paying 2-6% require a regular saver account or limit the interest to the first few thousand pounds so if you want 2%+ you'd need to have numerous separate accounts with different banks
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