in an online ISA
Emergency cash savings - Monzo Easy Access Savings Pot - Enough to cover approx 3-4 months of bills and day-to-day living costs.
Other cash savings - Regular monthly savers at 3 banks - As these fixed term accounts mature I have been moving the funds over to investments and then opening a new regular saver and repeating. Can also serve to supplement emergency savings if needed. In the last few months the interest rates on new issues of these accounts have been dropped from 5% to around 2.5% so will need to decide whether to continue with these types of accounts the next time one of them matures.
Investments - longer term / higher risk - one stocks & shares ISA + a few Innovative Finance ISAs + Dozens’ bonds
Most of my savings are in Al-Rayan bank, they pay 2.17% for two years fix. I save there in 12 ‘chunks’ which are due to mature 2 months apart, so should I ever need to live off my savings they will come in a steady flow. I then keep a small amount in an instant access virgin account (1.4%) for home emergencies etc. Total saved is about 6 months of living expenses, everything past that I invest, currently via nutmeg.
Savings are with Handelsbanken
I refuse to look into Handelsbanken. I like the (completely made-up) idea that they’re some kind of illuminati style banking set up and refuse to do anything to change that…
That’s what I expected Handelsbanken to be like when I opened my accounts. The reality is they are just like what a bank/building society used to be like 30 or 40 years ago with all decisions made by a person rather than a computer.
No you’re spoiling the myth!
They’re also in the business of making money so they like you to have some debt with them, hedged by some savings.
NS&I Premium bonds (I literally forget I even have these which is great from a savings out of sight, out of mind aspect. And yes I’m willing to accept the inflation tax on these)
Plum (automated microsavings e.g. rounds ups)
Freetrade (for long term wealth building)
May rebuild savings in dozens Trust bonds
How does Handelsbanken work exactly if you don’t mind me asking?
I feel like it had the Coutts vibe where you need to be super wealthy to be a member and meet many out of reach requirements for most of us.
Basically all lending decisions are made by the branch manager or their deputy; nothing is decided centrally or by computer. There are no set in stone fees or rates for their loans, all depends on what you need to borrow for and why. I don’t have a current account with them but I do know that the manager for your respective branch regularly keeps tabs on customer accounts so you stay on the straight and narrow. Also, there’s no helpline, you simply ring a named person in the branch, you’re given their respective direct dial or mobile number. I should stress, I’m not wealthy by any stretch (merely a Civil Servant) and I don’t believe there is a minimum criteria needed to bank with them. There is an element of mystique with them - only because they don’t appear to publicise themselves - but they are quietly taking over the High St.
What do you find beneficial about their model?
Is this the easy access savings account? Would you recommend?