Deposit Accounts

Money in a bank, or Building Society etc. Generally considered very safe, with interest earned 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 year's income in deposit accounts however then you may be missing out on more appropriate opportunities.

Deposits are protected to the tune of the first £85,000 per regulated institution. £170,000 for joint accounts *.

The detail is complex and subject to change. If your total deposit funds across all your accounts exceed these limits, you should talk to your financial adviser.

*Where the organisation is UK Regulated. We can check that your money is with such properly regulated organisations. Be aware that no matter how old and famous and British the company name might be, if you are dealing with any kind of offshore jurisdiction - including the Isle of Man and the Channel Islands - you might be beyond the help of the UK system.

Last updated on April 06, 2013