Over £100k in Savings A/C with LloydsTSB?

Bertiesmalls

Should I leave my savings where they are or should I follow the advice of spreading the risk?

I'm guessing that LloydsTSB are pretty secure following the HBOS acquisition but I've looked at alternative providers to invest 3 lots of £30k to ensure I'm covered 100% by the FSCS.

First problem was a number of providers offer a better interest rate but insist on having a linked current account with them, Citibank, ING which I don't have, so would mean opening more new accounts.

I've found 3 providers where I can utilise my existing Lloyds current A/C as follows:

Bradford & Bingley
Heritable Bank
Kaupthing Edge

All our covered under FSCS, but I'm wary of the latter 2 in the list.

I'm thinking they are more likely to go than Lloyds and I could be opening a can of worms by investing with them, even if they are covered.

I'm edging towards staying with Lloyds............what would you do?

YorkshireBoy

Your LTSB current account would serve as the 'linked account' for any online savings account requiring a DDI.

I'd be (slightly) more concerned with rate (especially with £100K) than with the FSCS guarantee.

Fortunately, there is no shortage of 6.5% paying accounts with 'sound' financial institutions at the moment.

Bertiesmalls

Thanks for the response, maybe I read the T&C's incorrectly with ING and Citibank but they said the linked account had to be with them.

Anyway, I'm more concerned about security than a better rate and don't want a handfull of accounts, and I've discovered that Northern Rock are 100% guaranteed in excess of the £35k and have signed up at 5.75% compared to LTSB @ 5.25%.

Therefore I've opened up a NR account and will shift the bulk of my savings into there.

I'm willing to sacrifice some interest for convenience !