What to do with £6-10k?

rathernot

Whilst I accept all the points about it being quite a unique occurrence etc. the recent Northern Rock troubles have made me wonder how wise it is to keep all my eggs in one basket.

I currently have around £35k with Icesave.

I know they are supposed to be pretty flush with liquidity as they have a lot of deposits, but it's got me thinking should I be looking to hedge my bets and have my savings spread across a couple of providers?

I'd be interested in opinions, especially as there do seem to be some very good deals at the moment if you can stand having some of your money not immediately accessible.

Just to stress, I'm not posting out of paranoia, nor am I gripped with fear etc. I'm simply curious what people's strategies are.

Oh I already have a Mini Cash ISA and a Mini S&S ISA.

esq

rathernot wrote: »

I know they are supposed to be pretty flush with liquidity as they have a lot of deposits

From CEO, Landsbanki site:

"The bank's funding pillars have been steadily reinforced by the rapid increase in its deposits, which have grown by 74% or over ISK 500bn (EUR5.9bn) year to date. The deciding factor here has been the highly successful Icesave on-line savings programme in the UK, which currently has around 100,000 customers and GBP 4bn in deposits. Deposits currently represent 76% of customer lending, compared to 47% at the beginning of this year and 34% at the beginning of the previous year."

Yup, flush sounds about right.

rathernot

esq wrote: »

Yup, flush sounds about right.

Thanks for the reply - slightly flush eh!

I'm still having a look around to see if there is anything offering silly interest rates over the short term.

As I said not worried/concerned about Icesave in the slightest, but being financially prudent is sensible IMHO.

Mine's_a_guinness

As Northern Rock now has a 100% guarantee, which no other bank has, why not invest with them?

rathernot

The poor rates of interest for a start

As I said not asking out of panic, but the recent events do focus your mind and it made me wonder if other the majority of people here dump all they want to save in one place that meets their needs or hedge their bets simply because of the "what if" numbers.