Alternative to savings account?

[DealorNoDeal]

Which is why I like the idea of having a bit of physical gold as insurance against the unthinkable.

The chances of us ending up like this may be extremely remote but...

https://en.wikipedia.org/wiki/Hyperi...eimar_Republic

[jamesbrown]

Nothing is truly 100% safe (even your house ) - it all depends on circumstances. Ultimately, the gov't can do whatever it wants in a crisis that (eventually) has the support of Parliament, but there are some things that it is very unlikely to do. In practice, it is rather unlikely that an FSCS-protected account would receive a haircut (notwithstanding any misunderstanding of the concept of a banking license). Likewise, it's rather unlikely that the Treasury would fail to meet its obligations because Even Worse Things Would Then Ensue.

[Lance]

Which (dodgy) banks are you using? The FSCS underwrites the first £85K (£170K for joint accounts)

And yes, always worth a punt on the PBs just in case of a big win, but the effective interest rate took a hit recently IIRC, and watch out for inflation chipping away at the value of the holding.

awww. bless....

they changed the rules after the financial crisis.
If one bank fails FSCS will protect you. If all the banks might fail BOE reserve the right to haircut the accounts like they did in Cyprus.
The FSCS don't have any money. They aren't in a position to cover any money. They can only do so at the behest of the gov, or BOE.

Whilst it might take a severe financial shock to threaten that money, it's not beyond possible.

Whereas Premium bonds aren't a bank. They are safe. Except from QE/devaluation/inflation.

[HoofHearted]

the best thing about premium bonds is the risk. If you have £50k in a bank it might not be safe. Bonds always will be.

Which (dodgy) banks are you using? The FSCS underwrites the first £85K (£170K for joint accounts)

And yes, always worth a punt on the PBs just in case of a big win, but the effective interest rate took a hit recently IIRC, and watch out for inflation chipping away at the value of the holding.

[Lance]

I like premium bonds. I've had the maximum for years and my luck appears to be "average" based on their estimated "interest rate". (Sadly) I have a spreadsheet which tracks it. Best year was 1.65%, worst year was 1.05%. Certainly fits the "very little risk" bill. Gold...er..not so much.

the best thing about premium bonds is the risk. If you have £50k in a bank it might not be safe. Bonds always will be.

[sludgesurfer]

Yep, that's what we're thinking. At least there's the chance of winning something, which makes it a bit more appealing than just getting 0.5% interest.

Will probably buy a bit of gold too just in case post-covid everything turns to shyte.

I like premium bonds. I've had the maximum for years and my luck appears to be "average" based on their estimated "interest rate". (Sadly) I have a spreadsheet which tracks it. Best year was 1.65%, worst year was 1.05%. Certainly fits the "very little risk" bill. Gold...er..not so much.

[DealorNoDeal]

Because there's no risk to your capital when purchasing gold?

Well, based on that definition, there's quite a few alternatives to a savings account... scootie can run through them for you.

I did say "a bit". Probably no more than 5% of the capital.

[Lance]

Because there's no risk to your capital when purchasing gold?

Well, based on that definition, there's quite a few alternatives to a savings account... scootie can run through them for you.

no VAT or CGT on gold if you get the right coins.

[jamesbrown]

Will probably buy a bit of gold too just in case post-covid everything turns to shyte.

Because there's no risk to your capital when purchasing gold?

Well, based on that definition, there's quite a few alternatives to a savings account... scootie can run through them for you.

[DealorNoDeal]

Premium bonds.

Yep, that's what we're thinking. At least there's the chance of winning something, which makes it a bit more appealing than just getting 0.5% interest.

Will probably buy a bit of gold too just in case post-covid everything turns to shyte.