stable business saving account

[jmann]

I know there have been lots of discussion on this topic but I would like to know which one of these bank is stable. I am looking to move £500k into an easy access saving account.

Aldermore - 0.85%
or
Cambridge & Counties Bank - 0.90%

[jamesbrown]

Stable in terms of what? Interest rates going down or the business going tits up? That said, I don't think you'll get much of a guarantee with either. Personally, I still go to the effort of distributing across several accounts, but it's a PITA. YMMV. To get a better understanding of risk, you'll need to look at these companies individually, but TBH that's a very hard thing to do unless they've been in the media as "at-risk" (e.g. Manchester BS). Many of these small providers are heavily exposed to BTL, for example.

[jmann]

Stable in terms of what? Interest rates going down or the business going tits up? That said, I don't think you'll get much of a guarantee with either. Personally, I still go to the effort of distributing across several accounts, but it's a PITA. YMMV. To get a better understanding of risk, you'll need to look at these companies individually, but TBH that's a very hard thing to do unless they've been in the media as "at-risk" (e.g. Manchester BS). Many of these small providers are heavily exposed to BTL, for example.

Yes, a bank which won't go bust. I am aware fscs scheme only provides £75,000 per business. I can't find any other banks offering similar sort of interest for easy access accounts. Any suggestions?

[jamesbrown]

Yes, a bank which won't go bust. I am aware fscs scheme only provides £75,000 per business. I can't find any other banks offering similar sort of interest for easy access accounts. Any suggestions?

Nope, I'm afraid not. I have accounts with both and with Nationwide (but their rates have come down a lot recently). There's not a lot you can do. For me, having the money distributed and, therefore, relatively safe is more important than earning a few quid on interest. The FSCS will likely increase to 85k again soon. The problem with small banks is that you're very much at risk above the FSCS limit, because they won't get bailed out when BTL takes a turd.

[jmann]

I am looking to spread it across multiple banks too. Has anyone used kentreliance.co.uk? They are offering 0.90% for easy access account which is not bad.

[adubya]

Cambridge & Counties Bank looks good, think I'll go with them (+ Aldermore)

[jamesbrown]

C&C are definitely good, IMO. No experience with Kent Reliance, but that's a good rate in the current climate, I agree (assuming it's easy access or isn't tied up too long).

[adubya]

Actually kentalliance is easier to apply to (online vs postal with Cambridge & Counties ).


Hmmm..

[jmann]

Actually kentalliance is easier to apply to (online vs postal with Cambridge & Counties ).


Hmmm..

That's what I thought too but their online application system seems to be having problems. Getting session timeout errors.

With most of the providers you can only open an account via post which is annoying.

[ladymuck]

Do you have to have instant access or could you survive if you locked the money away for 12 or 24 months (maybe longer)? Better rates to be had if you can either give notice to withdraw or not touch it at all for a while.