Deposit Accounts
Money in the Bank, or Building Society etc. Generally considered very safe, with interest being taxable. May be instant access or require notice.
However unless your Net Interest is GREATER than inflation, any money on deposit is slowly losing value. For this reason it is generally unwise to have large sums on deposit, unless they are set aside there for a purpose – house deposit, care fees etc.
As a rule of thumb it's good to have several months' income requirements available on Deposit, as an “emergency” or floating fund. If you have more than a years income in Deposit accounts however then you may be missing out on more appropriate opportunities.
Protection of Deposits – the first £35,000 is protected 100%.*
*Where the organisation is UK Regulated.
Last updated on April 11, 2008