Really not sure it works this way

Normal savers now have the chance to bank like the super rich, as a cash tool used by the elite opens its doors to the less well-off.

Unlike most people, who take their money direct to banks, the mega-wealthy have access to savings platforms that not only make it easier to move their cash but offer them better rates.

The largest, Flagstone, has dropped its minimum deposit level by 80pc from £250,000 to £50,000 due to increased demand from those with smaller pots.

These hubs let customers save directly with any lender that has signed up, cutting out the hassle of opening individual accounts with each one.

I would suspect that the reason to drop the limit is that they’re not getting enough of the superrich – who can go direct without needing an intermediary – so therefore they’ll chase the would be.

But then it has occasionally been said that I’m a bit of a cynic.

14 thoughts on “Really not sure it works this way”

  1. Flagstone’s top instant access rate: 1.48%.
    Marcus bank’s rate: 1.5%.
    Why would I choose Flagstone?

  2. “Why would I choose Flagstone?”

    Possibly because you can qualify for the £85k savings protection limit on multiple accounts in a far easier way? Not that that makes any difference to smaller deposits of course. But if you had £250k you could spread it over 3 accounts far easier with a service like Flagstone than have to open accounts with the institutions directly.

    And on the original article, £250k is hardly the ‘super rich’ is it? My definition of ‘super rich’ would be having enough capital to generate a reliable income that allows you to live in the manner of the super rich – yachts, helicopters, fleet of flash cars, staff everywhere, houses everywhere you want to spend any amount of time. Which I reckon bare minimum would need an income of about £1m and an initial capital outlay in the tens of millions for property etc. So maybe £100m would get you a ticket to super rich club, but only just.

    My next door neighbour lives such a lifestyle and his worth is estimated to be north of half a billion so its not a way of living that can be done on a budget.

  3. “its not a way of living that can be done on a budget”: you’re wrong there. I could live like that on a budget. But only for a fortnight or so. And without the houses. In fact, without a house. And the flash stuff just hired.

    It hardly seems worthwhile. Anyway, just imagine the vile sort of people you might meet. Mr Epstein (whatever alias he’s living under), Sir Philip Green, Beardy Branson, Slick Willie and his moll, the Obamas, the Duke of York, Toni fucking Blair …

  4. dearieme
    Quite, maybe there is someone among the super-rich who is down to earth and pleasant enough to be someone I’d like to spend much time with but I’ve seen little evidence so far.

  5. It takes minutes to open a personal account.
    I have several now – spreading 250k between different banks is easy.
    Spreading a few million would take a bit more time. Maybe an hour or two.

  6. “maybe there is someone among the super-rich who is down to earth and pleasant enough to be someone I’d like to spend much time with but I’ve seen little evidence so far.”

    I suspect the ones who are pleasant and down to earth are precisely the ones you’ve never heard of, because its very possible to live a luxury life without going to the sort of places that Tony Blair goes. And if by accident you did end up at the same place, leave immediately.

  7. The £85k applies to multiple accounts with different providers. If you have £85k with Yorkshire Bank and £85k with Clydesdale, there’s only £85k protected.

  8. If you have £85k with Yorkshire Bank and £85k with Clydesdale…
    But that’s only an issue if you are trying to insure against the complete collapse of the UK banking system – in which case, wouldn’t holding Euro, USD, Yen, Yuan, etc be a cheaper and more effective form of insurance? The deposit insurance is only intended to insure against single-institution failures, which splitting deposits does.

  9. Had a drink with Beardy Branson at the Gardens one night, dearieme. For regulars, it was a sociable place. I gather he owned it. Manageress had marked my card that staff were told to treat him like a normal customer. So did the same. Girl I was with was French, so she wouldn’t have known him from any other Beardy Brit. Seemed much the same as any other person you might have a passing conversation with in a bar
    Some people are like their public persona, if you meet them. Some aren’t.
    Another was the geezer was reputed to have been porking Di. Good public school & regiment don’cha’know?. Came over like a third rate time-share salesman

  10. For the not “super rich”

    Skipton BS are offering an in branch only 3% account (may be restricted to account holders)

  11. @Jim

    You’re not ‘rich’ unless you can live (a rich lifestyle) on the interest on your interest. So at least 9 figures to the left of the dp.

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