Tandem - high interest account

[Dingdong99]

I've got some savings with tandem and have been impressed with the app and interest so far

But it's a new and app only account. Would you feel safe paying in large sums over the 85k protected amount?

No, I would not.

No. Given that it's easy enough to open other accounts elsewhere (offering the same or a greater interest rate) why take the risk?

I like Tandem a lot even though it's not the absolutely highest interest rate. It's very quick to transfer money back to my current account when I need it (a few minutes normally).

But I can't see any reason to keep over the £85,000 in there when you could just open another savings account elsewhere.

Not that it's something I need to worry about, but I'd open another account elsewhere, why wouldn't you?

However, if the large sum is temporary, eg due to a house sale or something else I can't remember, possibly an inheritance, you have additional protection for a short period - 6 months to a year, so worth bearing in mind and checking what the actual rules are.

With that amount of cash, I'd be seriously thinking about doing something more productive with it, depending on why you have it and when you might need it, and also the affect of tax on the interest earned as you'll pay either 20% tax on all interest above £1k pa or 40% on above £500 pa depending on your marginal rate.

So using your ISA allowance, premium bonds or even using some of it for investing or topping up your pension if you don't need the money in the short to medium term.