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Best place for savings?

(16 Posts)
Savingsbank Mon 13-Oct-08 14:04:04

What's the best savings place for about £200K? It's currently in one bank, LloydsTsb, but we're only covered for £50,000 (almost all money in my name for tax reaons) so i thought I ought to spread it around a bit. WHich places are best? I prefer low risk.

I am a regualr but i've name-changed as i feel blush that we've had some recent financial luck at a time when the news is so desperate. Thanks.

Savingsbank Mon 13-Oct-08 16:01:33

bump, pls.

FAQ Mon 13-Oct-08 16:02:30

<<<<<<<<<<<<runs in>>>>>>

under the bed???? wink

<<<<<<<<<<<runs out again>>>>>>>>>

happylarry Mon 13-Oct-08 16:11:11

irish bank? cash isa's? halifax are doing good rates...

i'd go on a big holiday if i had that kind of cash, who knows what might happen tomorrow...

Swedes Mon 13-Oct-08 16:11:15

Put 40,000 in 5 different deposit accounts banks. Make sure they are five unique organisations (for example Abbey is owned by Santander and HBOS and Lloyds are set to merge).

Northern Rock
Lloyds OR HBOS (not both)
Royal Bank of Scotland OR NatWest (not both)
Standard Chartered
HSBC or First Direct (not both)
NS & I
Abbey National

Look at the FSA website for guidance on linked organisation.

I don't think there is anything to worry about at all.

CHOOGIRL Mon 13-Oct-08 21:45:22

If you split the £200K into 5 banks you will potentially be missing out on lots of interest for no reason at all. Gov has said no UK saver will lose money and whilst guarantee is £50K in effect you don't really need to worry.

PS Swedes you are wrong LTSB and HBOS are separate, as are RBS and NatWest. The difference is whether they are registered separately not whether they are linked. The FSA website will confirm this.

nannyL Mon 13-Oct-08 22:01:21

why would you be missing out on loads of interest? (assuming you get a similar rate in each account)

i agree that putting £40k in 5 completely different banks is the way to go (as if you do £50k in 4, as soon as interest is payed you will be over the garanteed limits)

LovelyDear Mon 13-Oct-08 22:05:44

i'd definitely get lots of premium bonds too, you can do i think £30k for each member of the family. and they are safe as are government owned bonds.

CHOOGIRL Mon 13-Oct-08 22:28:39

You miss out on lots of interest because most banks pay tiered interest eg the more you have the more you earn. Difference between 50K and 200K can be up to 2% AER so you can get 50K(x4) @ 3% or 200K at 5%.

nannyL Mon 13-Oct-08 22:31:08

or... 7% at halifax wink

DraculaNeedsArteries Mon 13-Oct-08 22:31:56

You would get 100% protection in Northern Rock or Bradford and Bingley or Post office savings accounts as these are nationally owned.

I don't think they are teh best rates though..but would be safe.

Or as described deposit £40K in 5 totally seperate institutions (taking into account that Halifax/Bank of Scotalnd and Loyds TSB may be on the verger of a merger).

CherryChapstick Mon 13-Oct-08 22:33:33

CherryChapstick wardrobe fund.

Tinker Mon 13-Oct-08 22:34:39

B&B still offering 6.5%

I'd still separate it so that if a bank collapsed you'd still have access to some money. I think it's as safe as it can be atm.

expatinscotland Mon 13-Oct-08 22:35:46

I think you should give it to me.

I'll keep it very safe .

CHOOGIRL Mon 13-Oct-08 22:38:33

I am going to get boring now. 7% is only for six months and you can neither withdraw or add to the money! As you can probably guess I work in the industry and have had my life taken over in the last couple of weeks trying to reassure clients, staff and customers on the is my money safe issue wink Oh well at least bank charges gone quiet.

Savingsbank Tue 14-Oct-08 12:48:39

Thanks very much, everyone, including Expat and Cherrychapstick for their alternative suggestions. grin I feel able to make some decisons now. smile

I'm sorry i didn't return to the trhread last night, real life and children intervened.

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