Chase safe for larger deposits

arfster

flopsy1973 said:

Hi
I need to empty my santander EA and was thinking about adding it to my chase saver which has the bonus. That will bring my balance to about 140k. Is anything likely to happen to chase in the short term ? Or the other alternative is put it in my partners name in something as she has not used her PSA any thoughts

Chase is the largest bank in the world - if it goes bust we're all completely screwed. Bigger then 1930s depression screwed.

TheBanker

arfster said:

flopsy1973 said:

Hi
I need to empty my santander EA and was thinking about adding it to my chase saver which has the bonus. That will bring my balance to about 140k. Is anything likely to happen to chase in the short term ? Or the other alternative is put it in my partners name in something as she has not used her PSA any thoughts

Chase is the largest bank in the world - if it goes bust we're all completely screwed. Bigger then 1930s depression screwed.

As I said in a previous reply, the Royal Bank of Scotland was, for a brief period, the largest bank in the world. It did not end well - the UK government bailed them out at a cost of £37bn.

I don't think Chase are going to get into trouble, but if they do will the UK government (or anyone else) step in to protect savers who stand to lose balances in excess of £85k? I don't think they will - I don't think the country can afford it, I don't think the government (whoever wins the election) have any kind of appetite for owning bits of failed banks, and I think they would reasonably be able to say that the £85k limit is well known and understood and therefore people have to accept their own losses in excess of this.

As I say, I don't think Chase are going to get into trouble, but I would not rely on the fact that Chase UK is a subsiduary of one of the biggest banks in the world as being any kind of guarantee. 

For the miniscule effort it takes to open another account somewhere else, I would not risk having >£85k with Chase or any other bank (not that I have £85k to worry about at the moment!). It also helps mitigate any short term disrpution caused by IT issues, accounts being frozen in error, fraud attempts etc.