Advice on 100k savings - all in Tesco bad idea?

kiboy6

I have best part of 100k earning fairly crappy interest. Just opened my Tesco account with 3.6 +1.5 = 5.1% interest for now.

Do you think it would be foolish to put all 100k in there? I know only 50k is covered but Tesco seems like as safe a bet as you could get.

My alternative would be to open the INGdirect account with bonus (c.2.7 +2.3 = c. 5%) for the second 50k. Although that is a foreign bank, with all the potential complications that entails should ING go under.

Just looking for advice on which option everybody thinks would be more sensible

Thanks!

LucyTheDwarf

Nowhere is 100% safe. Spread it between the two.

jimbow25

Even if I had less than 50k I'd be tempted to split it - bearing in mind the length of time it could take to get compensation from a failed bank - especially if my circumstances changed and I needed the money suddenly.

I would think it's unlikely Tesco would let their banking arm get into that sort of trouble but that's just my opinion. For the sake of 1 more application form I would probably split it.

Mikeyorks

After the events of the past few months putting £100k into a sole account isn't wise. Only put it in the one Institution if you can make it joint ... or split it into 2 x £50k sole accounts (obviously in different names ... assuming there's an OH)

withnell

jimbow25 wrote: »

I would think it's unlikely Tesco would let their banking arm get into that sort of trouble but that's just my opinion. For the sake of 1 more application form I would probably split it.

As far as I'm aware, Tesco financial is a JV with RBS, so although its covered by a separate license, when theinking about stability its worth considering in relation to RBS