Santander - Risk Of Defaulting

[laura122]

Is anyone here also worried about santander defaulting and having greater then 85K in deposit with them?

I have just our home and we parked our cash in Santander on an instant access basis - I am sure a few people here have more then 85K with Santander.

Are people starting to wonder about moving this elsewhere.

If so what banks pay a decent return and are deemed to be less risky?

[inflating]

Posted 18 April 2012 - 02:56 PM

http://www.thisismon...o=feeds-newsxml

Quote

However, the UK arm operates as an entirely separate business to its Spanish sister. This prevents problems in Spain affecting British customers, it says.

Quote

The £120billion of UK savers’ money with Santander stays in the UK and is not fed back to Spain. In – what experts say – the unlikely event of Santander’s UK arm going belly up, the first £85,000 (£170,000 for joint accounts) of savers’ deposits is protected by the UK savings safety net, called the Financial Services Compensation Scheme.

Post Number 3 http://www.housepricecrash.co.uk/forum/index.php?showtopic=177651

[nohpc]

You would be insane to have more than 85 grand in any one bank account.

And watch out for banks under the same umbrella (e.g. bradford and bingley, alliance and leicester, santander - only 85 grand covered across all 3 banks)

[Russe11]

the other issue is the length of time it will take yto get your cash out of the compensation scheme.

and what it will the cash be worth come that time

[thejaksie]

If santander go under there will have been a range of bankruptcies before that, they won't go alone for sure . I have a chunk of savings there myself, best of the worst considering they pay 4%

[19 year mortgage 8itch]

hat tip newsblog:

http://www.dailymail.co.uk/money/news/article-2144653/Santander-UK-says-British-savers-money-safe-Kent-County-Council-pulls-account.html

Santander UK insists British savers' money is safe after Kent county council pulls overnight deposit account

Read more: http://www.dailymail.co.uk/money/news/article-2144653/Santander-UK-says-British-savers-money-safe-Kent-County-Council-pulls-account.html#ixzz1uynUtiBR

http://www.bbc.co.uk/news/uk-england-kent-15500248

Fool me once, shame on you. Fool me twice, shame on me

Probably in the DM link but i refuse to read them.

[Executive Sadman]

I wouldnt risk it, but given this govts, or any govts general approach to cave in and 'compensate' (what for?!) any moron, be they idiots who go abroad without health insurance, or bimbos who get cheapo boob jobs, im sure in practice they'll compensate over £85k, just like icesave/kaupthing/northern rock.

[scrappycocco]

isn't most their business outside spain......

[200p]

Like those Icelandic banks?

We don't know how this one will play out.

[“Nasty Piece of work”]

Was the 4th word in the 2nd paragraph missed on purpose, for my limited imagination?

[Guest tbatst2000]

isn't most their business outside spain......

90% if the commentators are to be believed. They're huge in South America I think. Whilst I echo the 'don't keep more than 85K in any one bank' sentiment, I'd be more worried by RBS personally.

[Mr 0.01%]

How come more worried by RBS? Giant debts withstanding, All seems quiet there at the mo. Unless that's the problem!!

[Englebert]

Is anyone here also worried about santander defaulting and having greater then 85K in deposit with them?

I have just our home and we parked our cash in Santander on an instant access basis - I am sure a few people here have more then 85K with Santander.

Are people starting to wonder about moving this elsewhere.

If so what banks pay a decent return and are deemed to be less risky?

Worried? Not in the slightest. I owe Santander £6k. It was £4k initially until they started hiking their interest rate up. I have calculated that I have already paid off what they lent me. So me worried? Nope! I hope Santander go to the wall if I'm honest.

[Bruce Banner]

We don't keep more than £85K per person in any bank or institution, that means £170K between us in any banking group. NS&I is the only exception to this rule.

[scottbeard]

If santander go under there will have been a range of bankruptcies before that, they won't go alone for sure . I have a chunk of savings there myself, best of the worst considering they pay 4%

Icesave were paying great interest rates...right up to the point they became utterly bankrupt.

If anything, good rates are a sign of weakness: they have to offer high rates to tempt people in.

Personally, I have £0.00 with Santander - I'd rather have a lower interest rates and better sleep.

[bmf]

Icesave were paying great interest rates...right up to the point they became utterly bankrupt.

If anything, good rates are a sign of weakness: they have to offer high rates to tempt people in.

Personally, I have £0.00 with Santander - I'd rather have a lower interest rates and better sleep.

This. I have nothing with Santander, they can shove it.

[admann]

Santander going bust is a given, if you want to trust their so called firewall its up to you, but I think your money would be safer in binbags in your back yard....

[fluffy666]

How come more worried by RBS? Giant debts withstanding, All seems quiet there at the mo. Unless that's the problem!!

Goodness only knows how much they've lost in Ireland.. but since they are basically a branch of the BoE shouldn't be too much of an issue.

Thing with Santander could be nationalisation of the Latin American bits by Brazil/Argentina. Which would leave a totally bankrupt Spanish rump.

[scrappycocco]

isn't the BoE a private bank and the rbs mug owned.......

so assuming these banks are run by the type of people that would sell their relatives organs, which is the safest?

[notnow]

5 or 6 years ago I was worried about safety of RBS as I had a lump of money there, so I moved it to Northern Rock.....

[Bruce Banner]

5 or 6 years ago I was worried about safety of RBS as I had a lump of money there, so I moved it to Northern Rock.....

I moved most of my money to Northern Rock........ Just after the bailout when they were paying 7% interest on GBP and 4.5% on EUR, happy days .

[Nationalist]

I don't personally trust Santander with any of my money. The problem is that any British bank going tits up would get bailed out by the British government, but Santander is Spanish and the Spanish government might not have the cash it would take to rescue them.

Edited May 16, 2012 by Nationalist

[rantnrave]

Back in the madness of Autumn 08, my Kaupthing Edge one-year locked account was taken over by ING. Once the period came to an end, my lump sum was transferred directlly into an ING account, including the % of interest that should have been taken off as tax. Being a good boy, I contacted ING to point this out. They said that was something I'd have to take up with Kaupthing Edge. None of the phone numbers or email contacts I had for them worked though... Have I broken the law by keeping that money???

[R K]

More than the FSCS limits with any bank seems reckless.

After what's gone on with Germany, the EU and Greece I wouldn't personally want to rely on any 'agreement' between any EU/EZ govt and the UK.

Greece will default on their own banks euro deposits if they exit euro.

Same thing, if Spain exits.

Expecting them to give a sh1t about UK depositors, irrespective of what the law may say at the time seems a tad naive at best.

As for South America, Argentina are busy nationalising Spanish assets right now....................

The game is changing.

[Bruce Banner]

Back in the madness of Autumn 08, my Kaupthing Edge one-year locked account was taken over by ING. Once the period came to an end, my lump sum was transferred directlly into an ING account, including the % of interest that should have been taken off as tax. Being a good boy, I contacted ING to point this out. They said that was something I'd have to take up with Kaupthing Edge. None of the phone numbers or email contacts I had for them worked though... Have I broken the law by keeping that money???

If you noticed it, yes, probably.