I've had my current account with A&L for five years, previous to which it was with HSBC right back to when it was Midland Bank. I don't keep any savings with A&L, but I get my salary paid in and keep just enough money to keep the current account ticking over. I am concerned that A&L may go under this year, so I'm wondering what is the best alternative.

I realise that Nationwide, being a mutual, ought to be safer than a bank, but is it really any safer given that it is responsible for 10% of all mortgages in this country? Besides I am sick of it continually talking house prices up.

Of the banks Lloyds TSB looks the safest?

I'd be grateful if any of you could offer helpful opinions (other than get out of A&L!)

have a lot of money in nationwide and consider them a safe place to put my money in.....if i had to spread it round the paper work involved would be crazy

HSBC or Natwest would be pretty safe.

My business banks with HSBC and I personally bank with Natwest.

I have a very large sum with Nationwide for the very reason that I am led to believe that they are one of the safest places for your money in the UK currently.

The downside is obvious:

1. Their IRs are no where as competitive as the likes of B&B, A&L and the Icelandic banks.

2. I have much more than the 35K FSA guarantee

Couple of points:

If things get so bad that the likes of the Nationwide go under then I doubt the FSA will be able to rescue all the banks. Having said that, if things are so bad and there is some kind of convuluted bond rescue the Government might use the 35K limit as a hard limit and basically tell everyone with anything more in one bank that it is they own fault.

These are worrying times.

I pulled 30K out of A&L last week after being treated, IMPO, shabbily by them. I look at their IR and think perhaps I should swallow my pride and put my money back in there for X months... but in X months they could be in dire straits. I also have no confidence in them now.

I keep looking with loving eyes at the IRs offered by both A&L and B&B but my gut tells me I should avoid. Then again, maybe having less than 35K in each would be preferable to having everything in the Nationwide.

Sorry if this does not help you. Just trying to think out loud some of the issues.

What about the Coop bank?

Co op operates an online bank in its own name and also Smile. I was shocked how low the IRs are on both. I am not even sure, by the time you take inflation into account, whether you are staying ahead of inflation.

I am in the same position as Masked Tulip & GeoffK - I feel, for a while at least, that it is better to suffer a lower N/W IR than go to a risky bank. When things settle down I will return to a higher rate account elsewhere, be that in 6 months or 2 years time.

As an aside, I feel the Chelsea are worth considering

I have my future house deposit with YBS (under 35k), Yorkshire Building Society, www.ybs.co.uk.

They have a fairly attractive ISA rate, but its only annual payment.

I'm in the process of moving some money out of my "Internet Saver", to take advantage of the next tax tear's ISA allowance with Natwest (monthly interest), but I'm more than happy with their online facilities + general service and will be keeping the majority of the deposit with them.

Current rate is 5.60, gross, paid monthly.

Thanks for the feedback folks. I've opened a Nationwide Flex Account, so next month's salary will go in it. I believe that it is safer than A&L, even though the current account rate is not as good.

Market opinion: Lloyds and HSBC are the safest UK mainstream banks. (On average, the market always right.) This is also why Lloyds and HSBC won't pay the best rates.