Post by oik on Jun 9, 2016 14:19:39 GMT
Lloyds is only good for a few grand. Once you've maxed santander, lloyds Nationwide etc 2% is a good result
I currently hold far more cash than I would usually, with just over £250k in Santander, Lloyds Nationwide and especially "etc". That breaks down to £145k held in high interest current accounts at between 3-5% and £102k held in regular saver accounts at between 2-5%; all in either my or Mrs Oik's name.
Not all of them will be currently available to new customers so a bit of research may be needed. It pays to anticipate interest rates and if necessary to open unfunded accounts as the opportunity arises just to reserve the option. Similarly, there's no knowing how long the largesse of banks will last but I've had such accounts going back to 2009 and will happy to accept it for as long as it lasts.
Some regular savers allow payments in of over £1k a month but most much less. The whole circus can easily be automated by anyone with the nous to set up a SO and DD and the whole lot is fully protected by the FSCS without relying on a small chocolate teapot "provision fund". They also allow true instant access, not the next day after 5pm stuff, so is instantly available for sizeable investments.
If I'm really stuck I might have to use Ratesetter or the like and had to have six figures with them for a while but currently far less.
As to why some people will put their cash at risk with some low paying P2P accounts for less than they could get from FSCS banks I've no idea. Possibly due to lack of information or maybe just not too good at basic numbers. What we can count on is that the rates offered by P2P companies are likely to fall as they become more accepted by grannies and orphans and the companies will do all they can to push the rates down. That may also result in increased risk. No good getting upset about it: despite the rhetoric, the P2P companies aren't driven by a sense of public duty but by the desire to maximise profits. Better to be realistic than disappointed.