A reader from London have inherited some money and now wants to invest it.
Andy McKechnie, head of sales and marketing for savings at Halifax, tackles the problem.
Chantelle from Croydon asks:
I’ve recently come into a large sum of money from an inheritance.
I want to invest £80,000 of this into a savings account, but I am concerned about the security of investing such a large sum in a bank or building society.
What do you recommend?
The right type of account for you will depend on a number of factors, for example access requirements and how often you need to withdraw your money. If you can afford to make limited withdrawals (if any) then a fixed rate account will offer you a high rate of interest.
However, if you’d prefer to make regular withdrawals, then an easy access account may be a better option.
With regards to security, all UK Banks are covered by the Financial Services Compensation Scheme (FSCS).
The Financial Services Compensation Scheme provides customers with extra peace of mind that their money is safe. The FSCS is an independent body set up under the Financial Services & Markets Act 2000.
You can currently claim up to £50,000 in compensation for your money held in savings and current accounts. If your money is in a joint account, each of you can claim up to £50,000. That means that if there are two of you on the account you are jointly protected for up to £100,000 compensation.
Under the Financial Services Compensation Scheme you are covered separately for the deposits you have with each separately licensed bank – meaning you can spread your funds between different providers for added security. More information on the FSCS can be found at www.fscs.org.uk.
If you have a question for Andy, go to the myfinances.co.uk Ask the Savings Expert section.
Or for more information on your savings options go to savings at Halifax.
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