Should I hold more than £50,000 in investments with one firm?

Archi_Bald

Freecall wrote: »

I would have thought that the bigger risk with holding everything in one place would be the likelihood of IT failure.

That is more likely the case with cash funds that you need immediate access to. Not so much of an issue with investments, although any prolonged IT problem that prevents you from dealing could obviously be an issue.

Freecall wrote: »

The problems at RBS only lasted a view hours but that is a giant company, some of the smaller operators might not recover so quickly.

It depends what problems you are referring to. The first lot of RBS problems knocked out a lot of people for weeks.

TCA

Archi_Bald wrote: »

That is more likely the case with cash funds that you need immediate access to. Not so much of an issue with investments, although any prolonged IT problem that prevents you from dealing could obviously be an issue.

I'd agree with that. My cash is in fixed rate accounts with Birmingham Midshires, so not something I'm planning on accessing until maturity. Although I don't foresee problems with iWeb given ringfencing of investments in nominee accounts etc.....I'd still like to know whether the £50k investment cover operates in addition to the £85k savings cover within effectively the same institution.