Where do you guys stash your cash?

[mauzj]

IN the current climate it's not a good idea to store more than £35k in a bank account. And equities are a bit scary.

So where is a good safe place to store cash? I've looked at Natioal Savings but the rates are embarrasing.

 

[Hoggums]

IN the current climate it's not a good idea to store more than £35k in a bank account. And equities are a bit scary.

So where is a good safe place to store cash? I've looked at Natioal Savings but the rates are embarrasing.

Lots of different accounts.

 

[Gumping]

Yeah, surely a bunch of £30K accounts is fine.

Could always stick 30K into Premium Bonds too (or is that what you meant by National Savings?).

 

[rnicoll]

IN the current climate it's not a good idea to store more than £35k in a bank account. And equities are a bit scary.

So where is a good safe place to store cash? I've looked at Natioal Savings but the rates are embarrasing.

NS&I; yeah, the rates are bad, but frankly if you've holding cash then inflation is doing terrible things to it anyway. The official inflation rates are practically a complete fiction; look at the core costs of housing, food, energy IMHO.

 

[timsk]

So where is a good safe place to store cash?

Mrs.timsk keeps asking me the same question, to which I reply that she should deposit all her savings in my I.B. account. Curiously, she's not impressed by the suggestion, but then she is a difficult lady to please.:cheesy:
So, she's gone down the route suggested by Hoggums, although she's getting more nervous by the day as the financial crisis deepens. As for me, well, I follow my own advice - lucky ol' I.B. Anyone wanting an alternative to the obvious choices might find this interesting:
Borrow from Zopa lenders - at Zopa.com
Tim.

 

[BSD]

That sounds pretty interesting Tim, Zopa. Great business idea I think.

 

[tomorton]

As much as can be spared in Premium Bonds. Wins over a year balance average bank rate.

 

[mauzj]

How safe is Zopa? Has anyone tried using it?

 

[shadowninja]

As much as can be spared in Premium Bonds. Wins over a year balance average bank rate.

If my Premium Bond's account performance is anything to go by then that'd be 0.5% PA then...

 

[timsk]

How safe is Zopa? Has anyone tried using it?

Hi mauzj,
I haven't used them - either as a lender or a borrower - but the idea appeals nonetheless. We (as in the royal 'WE') historically put all our faith in banks and building societies and have grown used to their relative safety in recent times. Relative to other asset classes that is. As more people question this view - and understandably so - and governments are reluctant to offer the safeguards that investors want (unless your deposits are with Irish banks, lol), then businesses like Zopa will appear increasingly attractive to lenders and borrowers alike. Lenders get a better return and (in theory, anyway) borrowers have access to funds that might otherwise be denied to them by hard pressed illiquid banks. I guess that this is beginning to sound a bit like an ad' for Zopa.com - so I should point out that I have no connection with them of any kind. Indeed, I too would be interested to hear the views and experiences of anyone who's dealt with them - independent of the the links and blogs etc. provided on their website.
Tim.

 

[fifty2aces]

As much as can be spared in Premium Bonds. Wins over a year balance average bank rate.

I think 3.1% is the expected return, though the high level of skewness in returns (negligible chance of winning top prize means vast majority of people will get below average returns) means you'll most likely do worse than this.

You should certainly be able to beat premium bond returns with savings accounts, although they are a good alternative to playing the lottery.

 

[blackcab]

I think Northern Rock does a savings account at 5.75% which afaik is better than NS&I or Premium Bonds.

 

[TomTom]

I keep most of my cash under the mattress.
Some in savings accounts the rest in bricks and mortar.
Its good to buy priemium bonds when one has some good profits too.
Have a good day

 

[KillPhil08]

I keep most of my cash under the mattress.
Some in savings accounts the rest in bricks and mortar.
Its good to buy priemium bonds when one has some good profits too.
Have a good day

Can I have your home address?

 

[timsk]

Can I have your home address?

Why, so you can steal his house?

 

[Lexx Aston]

Bargepole warning

Martin @ moneysavingsexpert gives zopa.com the "BARGEPOLE WARNING" and MoneyMorning are always banging on about Gold but in my humble opinion it near the top of its price. Also if your not buying into bar form e.g coines it very expensive. This may go down in history as the most dangerously mistaken cliché ever uttered “You can’t go wrong with bricks and mortar.” Ther are alot of brick manufacturers closing down.

 

[Stuart14]

Max £35 per account plus some with NS&I Income bonds. They pay 4.8% monthly which isn't insulting.

 

[Gumping]

I have about £2300 Premium Bonds and have won £150 in about 2 years - roughly 3.25% return, which is tax free. I find it a better alternative to the lottery anyway!

My boss was downloading stuff the other day - there was a bank offering >7% p.a. but it was on a 1 or 2 year fixed account - so no access to cash. That sounds pretty attractive if you know you won't touch it.

Then there are ISAs........

 

[gamma]

Why, so you can steal his house?

If he manages to steal the house,
how would he cope with the negative equity?

 

[cogitoergosum]

however, don't forget that it's £35k per person. So if you have ajoint account with your partner, you can increase that to £70k.