We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
We're aware that dates on the Forum are not currently showing correctly. Please bear with us while we get this fixed, and see Site feedback for updates.

Yorkshire Building Society or Lloyds ?

I will be getting a lump sum payment (£100,000) soon, and I am stuck between putting it in Yorkshire Building Society at 2.72% or Lloyds at 2.50%(Joint account so £100,000 is protected), but as well as the interest who is the best for safety Lloyds or YBS ?.

Also with Lloyds I can get the money or do transfers Instantly, with YBS the transfers can take up to 5 days and I cannot use a YBS branch (Which is miles away anyway) as it is a Internet only account.

I would be grateful for some advice if it is worth losing the .22% interest is Lloyds would be the best bet.

Thanks.
«13

Comments

  • opinions4u
    opinions4u Posts: 19,411 Forumite
    Safety? Who knows.

    Lloyds is 43% government owned, so would they let it collapse? Yorkshire won't have the corporate lending exposure Lloyds have.

    You're covered by the FSCS either way, so what's your problem?

    Why not visit a comparison site like www.moneysupermarket.com/savings and select the accounts best for you.

    It doesn't all have to be in the same place.

    Additionally, why not see an IFA? This is a large sum and there may be ways you can maximise tax allowances etc to your benefit.
  • 97trophy
    97trophy Posts: 915 Forumite
    opinions4u wrote: »
    Lloyds is 43% government owned, so would they let it collapse? .

    No need for a question mark.

    Both the YBS and Lloyds would be fully supported by the UK Govt should the need arise.

    Most probably, your greatest risk is not bank failure but erosion of spending power due to inflation.
  • isofa
    isofa Posts: 6,091 Forumite
    If you can't decide why not split it 50-50 into each?

    Personally have used Lloyds since a teenager, and although everything is a mess right now, can't see money ever being at risk (my opinion though). YBS a good company, wouldn't have an issue with saving with them either.
  • rb10
    rb10 Posts: 6,334 Forumite
    On £100k, 0.22% interest is £220. Depends if £220 per year is worth it to you to have a slight wait in getting access to your money. (If it was me, I would go for YBS at the higher rate for £220).
  • DiggerUK
    DiggerUK Posts: 4,992 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Photogenic
    If you are going to play safe in interest bearing savings, at least play wiser than in one place.

    You should spread this around at least five providers in my opinion.

    The 50K guarantee is one thing, it's the delay in compensation that may mean you can't get your hands on your loot when you want to.

    Look how long some people have had to wait for their Iceland money.
  • D1zzy
    D1zzy Posts: 1,500 Forumite
    Agree with splitting over a few banks. Can you lock any away?
    ICICI - 4.1 % fixed for 2 years
    A & L 4.01% fixed for 2 years ( min 30K)
    Investec High5 pays average of top 5 savings account (currently 3.41) ( min 25K 3 months notice)
    LLoyds - if you and your OH each open another current account with "Vantage " you can stash 7K in each and get 4% ( need to pay in £1000 per month - but just use a SO to transfer £1000 to each other - so maintaining your balance)
  • nicko33
    nicko33 Posts: 1,125 Forumite
    Does it all have be in instant-access?

    because Lloyds also offer a 3.75% 1-year bond
    (via their HBOS-Birmingham Midshires-AA arm) AA Internet Fixed Rate Bond
    according to www.moneyfacts.co.uk


  • withnell
    withnell Posts: 1,629 Forumite
    nicko33 wrote: »
    Does it all have be in instant-access?

    because Lloyds also offer a 3.75% 1-year bond
    (via their HBOS-Birmingham Midshires-AA arm) AA Internet Fixed Rate Bond
    according to www.moneyfacts.co.uk


    This product is provided under the Bank of Scotland banking license, so the FSCS compensation amount is independant of any money invested in Lloyds Bank
  • Yorkshire building society have reduced there rates to 2.10% down by 0.65%
  • withnell
    withnell Posts: 1,629 Forumite
    Yorkshire building society have reduced there rates to 2.10% down by 0.65%

    I still see 2.75% even after clearing my cache?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 348.4K Banking & Borrowing
  • 252.1K Reduce Debt & Boost Income
  • 452.4K Spending & Discounts
  • 241K Work, Benefits & Business
  • 617.3K Mortgages, Homes & Bills
  • 175.7K Life & Family
  • 254.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.