Sheer Heart Attack Posted November 3, 2007 Share Posted November 3, 2007 I am with a major high street bank and have become very concerned about them in the last 2 weeks. I don't want to name them, but if I said they were one of two banks that went to the Fed for a $30bn credit line and also went to the BoE twice in the last three months, you could understand my concern. Which bank would be best to put my business and personal savings into? Or are they all in a mess? Quote Link to comment Share on other sites More sharing options...
yaakov Posted November 3, 2007 Share Posted November 3, 2007 yes, I'm worried about my bank, Barlays, too. Lots of rumours around about them. Are ISAs guaranteed? Quote Link to comment Share on other sites More sharing options...
Ah-so Posted November 3, 2007 Share Posted November 3, 2007 Bank of England - National Savings. Quote Link to comment Share on other sites More sharing options...
headmelter Posted November 3, 2007 Share Posted November 3, 2007 Am I mistaken or are all deposits up to £35k not gauranteed since the NR fiasco? Quote Link to comment Share on other sites More sharing options...
yaakov Posted November 3, 2007 Share Posted November 3, 2007 Am I mistaken or are all deposits up to £35k not gauranteed since the NR fiasco? I remember reading somewhere that online savings accounts are not guaranteed. I wonder if ISAs are also not guaranteed. Quote Link to comment Share on other sites More sharing options...
thirdwave Posted November 3, 2007 Share Posted November 3, 2007 (edited) I am with a major high street bank and have become very concerned about them in the last 2 weeks.I don't want to name them, but if I said they were one of two banks that went to the Fed for a $30bn credit line and also went to the BoE twice in the last three months, you could understand my concern. Which bank would be best to put my business and personal savings into? Or are they all in a mess? I'd say Bank of Mom & Dad..I usually use them as the lender of last resort but I gather they operate an extended credit facility for all occasions, are open 24/7 & are immune to any credit crunch...I`m not sure if I`d want to deposit any money in it though Edited November 3, 2007 by thirdwave Quote Link to comment Share on other sites More sharing options...
headmelter Posted November 3, 2007 Share Posted November 3, 2007 I remember reading somewhere that online savings accounts are not guaranteed. I wonder if ISAs are also not guaranteed. Do you know where info is obtainable regarding deposits? Quote Link to comment Share on other sites More sharing options...
crash2006 Posted November 3, 2007 Share Posted November 3, 2007 Bank of England - National Savings. If you buy direct you reduce the money supply, have you got enough to do that Quote Link to comment Share on other sites More sharing options...
yaakov Posted November 3, 2007 Share Posted November 3, 2007 Do you know where info is obtainable regarding deposits? The problem is I'm not sure where I read that or how accurate it is. Quite possibly it was a post on here. It may not be true - I don't know. Quote Link to comment Share on other sites More sharing options...
Guest The_Oldie Posted November 3, 2007 Share Posted November 3, 2007 The problem is I'm not sure where I read that or how accurate it is. Quite possibly it was a post on here. It may not be true - I don't know. From Sainsburys Bank website. Financial Services Compensation SchemeSainsbury's Bank is a member of the Financial Services Compensation Scheme under the Financial Services and Markets Act 2000. Where a customer has made deposits in a savings or bank account, payments under the scheme are limited to 100% of the first £35,000, subject to a maximum payment to any one depositor of £35,000. This limit applies provided the insolvency or other default of the bank or firm concerned takes place after 1st October 2007. Most deposits denominated in sterling and other European Economic Area currencies and euro made with offices of the bank within the European Economic Area are covered. There are different levels of protection for other investments covered by the Financial Services Compensation Scheme. Further details of the scheme are available on request. I spoke to them some weeks ago and the Compensation is per person, ie if you and your wife each have an account, each is protected. Quote Link to comment Share on other sites More sharing options...
headmelter Posted November 3, 2007 Share Posted November 3, 2007 Just found this and no mention of exclusions for ISA's or online only accounts. http://www.fsa.gov.uk/pages/Library/Commun.../2007/105.shtml Quote Link to comment Share on other sites More sharing options...
Guest The_Oldie Posted November 3, 2007 Share Posted November 3, 2007 yes, I'm worried about my bank, Barlays, too. Lots of rumours around about them.Are ISAs guaranteed? I too have money in Barclays but I'm hesitant to move it to another bank as I could jump out of the frying pan into the fire. Edit: To be honest, I doubt (famous last words?) that any of the major clearing banks will go bust resulting in loss of money in deposit accounts, but some of their investment funds could be heavy losers. Quote Link to comment Share on other sites More sharing options...
yaakov Posted November 3, 2007 Share Posted November 3, 2007 I too have money in Barclays but I'm hesitant to move it to another bank as I could jump out of the frying pan into the fire. So am I. Very difficult to know what to do. I'm primarily worried about my mini cash ISAs and Barclays e-savings accounts because I am not sure they are covered by the deposit guarantee. Also I wonder if it would be a good idea to keep a few hundred pounds in cash at home just in case it becomes difficult to get cash. Quote Link to comment Share on other sites More sharing options...
MRMX9 Posted November 3, 2007 Share Posted November 3, 2007 I too have money in Barclays but I'm hesitant to move it to another bank as I could jump out of the frying pan into the fire. Why precisely would anyone have savings with Barclays - their rates are dreadful - do you not look at best buy tables? Why not try a mutual building society e.g. Yorkshire/Nationwide or a smaller regional society if there is one in your area. They are far safer havens in the current climate - many have been around since the Crimean war so have seen worse times than this. Not of course that the government could or would allow depositors at one of our high street banks to lose their money. Quote Link to comment Share on other sites More sharing options...
Guest The_Oldie Posted November 3, 2007 Share Posted November 3, 2007 Why precisely would anyone have savings with Barclays - their rates are dreadful - do you not look at best buy tables? Offshore Euro account, rates are quite competitive. Why not try a mutual building society e.g. Yorkshire/Nationwide or a smaller regional society if there is one in your area. They are far safer havens in the current climate - many have been around since the Crimean war so have seen worse times than this. Not of course that the government could or would allow depositors at one of our high street banks to lose their money. I also have money in Yorkshire, are you sure they don't have exposure to toxic paper? I'm not completely convinced. Quote Link to comment Share on other sites More sharing options...
yaakov Posted November 3, 2007 Share Posted November 3, 2007 Why precisely would anyone have savings with Barclays - their rates are dreadful - do you not look at best buy tables? yes that's true. In my case its mainly due to inertia and laziness. Quote Link to comment Share on other sites More sharing options...
Sheer Heart Attack Posted November 3, 2007 Author Share Posted November 3, 2007 yes that's true. In my case its mainly due to inertia and laziness. Laziness and inertia - you've got it spot on. I moved my personal & business account to the bank in 1998. My merchant facilities are with them. However, as one poster said, how do I know it won't be out of the frying pan? Quote Link to comment Share on other sites More sharing options...
zinny01 Posted November 3, 2007 Share Posted November 3, 2007 For what it's worth I had a look at this a few months ago. Based purely on exposure to sub prime lending, adherence to some sort of fractional reserve system, and low exposure to credit card and mortgage lending I went for Co-Op Bank. It's worth doing the homework. At the end of the day no bank is future proof some just look less exposed than others. Quote Link to comment Share on other sites More sharing options...
Andy Jones Posted November 3, 2007 Share Posted November 3, 2007 I'm splitting my captital up into £70k chunks and opening joint savings accounts to take advantage of the government gaurantee of the first 35k of each depositers deposit. Trouble is its hard to find half a dozen accounts which even come close to the quality of Icesave. Northern Rock has been saved at roughly double the cost of Trident. Thats a big ticket expenditure. IF the Bradford or Leicester goes the same way I just do not think the BoE will have the money or will to do a NR2. At which point I wouldn't want to be working in the NS&I call centre.. ANDY Quote Link to comment Share on other sites More sharing options...
Guest muttley Posted November 3, 2007 Share Posted November 3, 2007 I'm splitting my captital up into £70k chunks and opening joint savings accounts to take advantage of the government gaurantee of the first 35k of each depositers deposit. Trouble is its hard to find half a dozen accounts which even come close to the quality of Icesave. If we reach a point where more than one or two banks go to the wall, then the governments promise would be meaningless. As for a safe bank.....HSBC. They are huge, global and have been less aggresive with their mortgage lending. Quote Link to comment Share on other sites More sharing options...
Wad Posted November 3, 2007 Share Posted November 3, 2007 Which bank is least vulnerable? How about the Bank of England - you could say its backed by the Treasury and solid as a Rock. Quote Link to comment Share on other sites More sharing options...
crashmonitor Posted November 3, 2007 Share Posted November 3, 2007 (edited) Am I mistaken or are all deposits up to £35k not gauranteed since the NR fiasco? Almost right,Northern rock is guaranteed for an unlimited amount in perpetuity for deposits made now,BOE wants the B*gger off its hands at any price.Rather worrying that the Government think it can underwrite most of the one trillion on deposit at UK Banks,except for amounts over the 35K.There again the govenment thinks nothing of filling the 760 billion shortfall in public sector superannuation schemes.And those who will benefit haven't even actually saved that money,it is because of a f**k up in longevity estimates,collapse in investment returns , collapse in annuity rates and stellar rise in pay on what final salary schemes are based. Edited November 3, 2007 by crashmonitor Quote Link to comment Share on other sites More sharing options...
Guest grumpy-old-man Posted November 3, 2007 Share Posted November 3, 2007 For what it's worth I had a look at this a few months ago. Based purely on exposure to sub prime lending, adherence to some sort of fractional reserve system, and low exposure to credit card and mortgage lending I went for Co-Op Bank.It's worth doing the homework. At the end of the day no bank is future proof some just look less exposed than others. it was pure luck that we are with a AAA rated bank anyway. Are we safe, probably not according to cg, but it's all down to personal circumstance. I moved what sterling I had left into my euro account, is that safe, probably not either. I am starting to wish I had bought some gold now, but realistically I need access to the money unfortunatly, I also have the little known but very common disease called the: p1ss-poor syndrome, often associated with working class males from the North. Quote Link to comment Share on other sites More sharing options...
whistleblower Posted November 3, 2007 Share Posted November 3, 2007 City fears second bank is heading for credit crisis · Rumours sweep City over who borrowers might be · Barclays shares hit by financial stability fears Phillip Inman Saturday November 3, 2007 The Guardian The City was swept by rumours yesterday that another British bank was in trouble after Northern Rock indicated it was not the only bank borrowing from the Bank of England's rescue fund. Northern Rock has borrowed only £18bn of the £23bn lent by the Bank of England from its emergency loan fund, leading to speculation that other British banks need £5bn of extra funds to cope with the global credit crunch. The chairman of the Newcastle-based bank confirmed the level of borrowing from the central bank was below £20bn in an interview with the Newcastle Journal. Sources close to Northern Rock indicated the figure was closer to £18bn as the need for borrowing in the last few weeks had been lower than the scramble for funds in the immediate aftermath of the bank's near-collapse in September. Quote Link to comment Share on other sites More sharing options...
Guest tbatst2000 Posted November 3, 2007 Share Posted November 3, 2007 As for a safe bank.....HSBC. They are huge, global and have been less aggresive with their mortgage lending. Agreed on HSBC, they have a long tradition of a very strong capital base and have already written off most of their mortgage related problems. If they go under, any money you've got will have become worthless anyway. Quote Link to comment Share on other sites More sharing options...
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