Half a Million in either Santander, ING or AA Bank Advice Needed?

KingD_2

Hi Guys,

I have 500,000 pounds from the sale of a buy to let property and I might want to use it again soon in a few months. However, I have it in Barclays now earning 0 interest. I was going to open an online saving accounts with either Santander or AA bank (part of hbos it seems) or ING direct and they will all pay 2.75% over the year in monthly interest but Im unsure which one is be which is the best around, for both safety and efficiency (and ease of opening managing teh account).
I guess the main thing is which one is the most trust worthy for my my money as I cannot afford to lose my money. To be honest, I also dont want to open 10 different accounts for admin/accounting reasons, so dont know which of the 3 above is my best bet.


Any help would be appreciated.
Regards
Don

Loughton_Monkey

AA (Actually Birmingham Midshires pay 2.8%, but only in 12 months time.

Plenty of monthly interest/2.7%-ish around, but your trusting to luck by leaving it with one provider.

lisyloo

Do you really think a UK bank is going to go bust?
The government have clearly showed they won't let that happen many times over.
The risk is theorectically there but it's negligeable.
If that's how you think then I hope you have a strategy for lighting/tornado/meteor strikes as to he honest that's more likely.

alanq

"The government have clearly showed..." but we now have a different government.

I agree that the risk of a bank being allowed to fail is small but I wouldn't be willing to bet £500,000 on it.

In the case of ING it is the Dutch government one has to depend on.

NS&I has an unlimited government guarantee. Its interest rates are not great but better than 0% and no worrying about the bank going bust. So why not NS&I Direct Saver 1.75%?

shepwood

if you open a santander online account in a few months time they might have just managed to get your account up and running just in time for you withdraw your money again assuming they have not lost track of your funds. They seem to struggle tranferring anything over 10K without protracted complications.... best avoided in my experience

neil324

Did'nt the Tories want to let Northern Rock fold? Different govenment now regardless. On that amount of money, return of money is more important than return on money. At least limit it to about £80k each bank in anticipation of the coming FSCS changes and your also splitting the risk.