Who To Go With Next?

Paul_N_4

Looking to jump ship from Northern Rock eSaver now they've dropped the rate. Am already with Nationwide, Abbey, A&L and can't put more in. So I'm looking for another competitive savings account with 6%+ savings rates.

I want to avoid any smaller building society as they all seem to be getting bought up by Nationwide recently. Was considering Nationwide's 6 month ebonds at 6.5% but that would take me over the 50k limit, and I'm wary of Nationwide's future financial position. Am considering Tesco's Internet Saver, but heard they take an age to open it up, and they're associated with RBS. Should we be avoiding RBS/HBOS/Lloyds/B&B at the moment?

So many things to consider these days so what would you do? Who would you go with next?

opinions4u

1) I wouldn't avoid anything British. I think the government's undepinning of British banks is worth more than an unlimited guarantee from a foreign nation.

2) Which means chase the rate.

Birmingham Midshires do a 6.4% telehpnoe account - fixed, no further deposits but allows 4 withdrawals. They also have a 6.97% fix for 6 months - no access though. Access wise, I like Egg at 6.55% but yet to see a response to the last base rate cut.

Check out somewhere like www.moneysupermarket.com/savings to shop the market.

I,_Brian

Nationwide are actually in a very strong capital position. and Nationwide are pretty confident they aren't likely to face any funding problems:
http://www.nationwide.co.uk/intheknow/finances/how_safe.asp

However, I think it is a good idea to keep things spread out, though, just as a matter of keeping eggs in different baskets.

Have you looked much at some of the other international savings schemes? While overseas investments don't carry much optimism at present after the Icelandic banking collapse, some international banks actually carry 100% deposit protection, regardless of amount saved.

opinions4u

I,_Brian wrote: »

Nationwide are actually in a very strong capital position. and Nationwide are pretty confident they aren't likely to face any funding problems:

They would say that though, wouldn't they. But then the FSA confirmed HBOS was a strong bank with a strong balance sheet hours before they were forced in to bed with Lloyds.

Nationwide has 3 key potential problems:

1) Being forced to take on other less viable organisations.

2) A savings book filled up with 1 year bonds - rate tart customers who will jump ship on maturity.

3) They are still 30% wholesale funded. There are no guarantees that an organisation with total exposure to the British housing market can get funding renewed. Good job HM Government will provide this if the markets won't.

Never assume because an organisation is big that it is safe

Never assume that because an organisation says it is strong that it is safe or strong.

Never assume that because an organisation is a cuddly nice mutual this means it is safe.

Icesaver

Never assume anywhere is safe!