What are the best savings plans for medium term cash?

Once again the answer is it depends. This should form part of your financial plan and the actual savings plans or deposit accounts that you invest in will depend on your circumstances.

There is no one best savings plan for your medium term cash for everyone although the cash ISAs make a pretty good start for those in the millionaire asset group.

What sort of cash savings plans should be considered?

It will depend on your circumstances hence the need for independent financial advice from a good financial planner.

However these are some of the plans that need to be looked at:

• Instant savings accounts
• Fixed term bank and building society cash deposit based bonds
• Best Cash ISAs
• Premium bonds and other National savings products

What happens if the bank or building society goes bust?

The Financial Services Compensation Scheme (FSCS) comes into affect. Simply it protects 100% of an individual’s money up to £85,000 for cash deposit based investments regardless of how many accounts they hold. So obviously don’t put more than £85,000 individually into any one banking group.

Take care

You need to check before depositing your money that the different institutions are not authorised under the same group by the Financial Services Authority (FSA). Basically they need to be separately authorised by the FSA otherwise the money held in separate banks will all count together with the £85,000 limit and that’s all you may get back if they do go bust. If you hold a joint account the FSCS regard this as split equally so you can hold up to £170,000.

How do I ensure I get the best rates on my cash savings plans?

You search the internet and newspapers but obviously rates are changing constantly.

If you prefer to hold over £85,000 in cash we offer a cash management facility where a professional manger ensures you are getting good rates all the time. There is obviously a charge for this facility but it does save you the time and hassle.

Any questions on cash savings plans?

Please call us on 01582 839280 or Email us.