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Lucinda

35k Guarantee Is Across All Subsidiaries!

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It was just on Moneybox that the FSCS guarantee for savers is across all subsidiaries of a bank, so you should only hold £35,000 in any of their group companies.

Thsi is scary as I have no idea who owns what - I only found out the other day when investing in the Lloyds TSB fixed rate ISA that they own Cheltenham & Gloucester (because I was transferring from there).

Does anyone have a list or can we compile one??? I 'm somewhat troubled by this I must say.

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It was just on Moneybox that the FSCS guarantee for savers is across all subsidiaries of a bank, so you should only hold £35,000 in any of their group companies.

Thsi is scary as I have no idea who owns what - I only found out the other day when investing in the Lloyds TSB fixed rate ISA that they own Cheltenham & Gloucester (because I was transferring from there).

Does anyone have a list or can we compile one??? I 'm somewhat troubled by this I must say.

I saved this link which someone else posted a few days ago:

http://www.moneysavingexpert.com/savings/s...vings#protected

Check the colour coding. I wasn't aware that Post Office accounts were run by Bank of Ireland. They used to be run by Alliance & Leicester?

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It matters not the compensatation fund is capped at £4 billion in any year as per FSA rules.

In the event of anything but a small - medium bulding soc going bust it simply dosent have the capacity to pay out all to everyone.

the firts 100000 customers then zilch..........

It is in effect useless in the present crisis but people cling to the £35k protection like a child to a teddy..........and the banks will not discuss the limits.

:(

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Thanks for the chart, it is just what I was looking for. About that 4bn limit though, wouldn't the banks be expected to call in their mortgages first before they tell us they have no money?? Or is that too much to hope for?

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This FSA thing sounds like a crock of **it to me. The only safe place is looking like a mattress to me.

On a side note the Post Office tells me that all funds are covered for any amount with an easy access account. Can anyone confirm this. I would rather lose interest for three months or more while this pans out. Gonna be some broken hearts soon.

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Yes, but being under 35K per bank is better than being over and then the Government saying "We told you so". People with over 35K in savings make up less than 10 percent of savers so best to spread it around IMPO.

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Yes, but being under 35K per bank is better than being over and then the Government saying "We told you so". People with over 35K in savings make up less than 10 percent of savers so best to spread it around IMPO.

It looks to me like safe places to put it are running out if you might have to wait years to get it all back if it all goes tits up big time. Mines in Nationwide and I always felt it was worth the lower interest to feel secure. Still think it will be alright but who knows.

That's why when they told me at the PO that any amount would be covered I opened an account just in case I needed to transfer quickly. Can you confirm that this is so..

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NS&I easy access is 100% safe so thats o.k. but the Post Office saver isn't. That comes under the fsa rules.

Just rung em. Think if I hear any more bad news about Building societies I will shift a big lump and buy some premium bonds. Its not worth the worry as far as I am concerned. Bit like get married and repent at leisure. :(

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NS&I easy access is 100% safe so thats o.k. but the Post Office saver isn't. That comes under the fsa rules.

Just rung em. Think if I hear any more bad news about Building societies I will shift a big lump and buy some premium bonds. Its not worth the worry as far as I am concerned. Bit like get married and repent at leisure. :(

I have a wad in the skipton bs think is reasonably safe on a 6.5 fix for 18 months did a lot of research about them, the 2 isa we have is with the Hfax will be moved in a few months when it can....I hope! and a smaller wad with Nationwide who are very nice people.

The rest is in NS&I (100% secure) and thats where I will stuffing more, and more.

The point I was making about the 4Bn fsa limit is that given a bad deal going own with any institution I dont think we will see the fsa jumping in with the guarantee. A merger or if its bad / big enough more northern rock gov take over deal will be announced after the fact indeed we will wont know much detail due to the secret policy now in place.

I would doubt any cash savings investor anywhere in the UK will loose any money as a result of any more bank trouble.

Politically nu labour and its leadership will try to save its skin however it can....

T

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NS&I easy access is 100% safe so thats o.k. but the Post Office saver isn't. That comes under the fsa rules.

Just rung em. Think if I hear any more bad news about Building societies I will shift a big lump and buy some premium bonds. Its not worth the worry as far as I am concerned. Bit like get married and repent at leisure. :(

I have a wad in the skipton bs think is reasonably safe on a 6.5 fix for 18 months did a lot of research about them, the 2 isa we have is with the Hfax will be moved in a few months when it can....I hope! and a smaller wad with Nationwide who are very nice people.

The rest is in NS&I (100% secure) and thats where I will stuffing more, and more.

The point I was making about the 4Bn fsa limit is that given a bad deal going own with any institution I dont think we will see the fsa jumping in with the guarantee. A merger or if its bad / big enough more northern rock gov take over deal will be announced after the fact indeed we will wont know much detail due to the secret policy now in place.

I would doubt any cash savings investor anywhere in the UK will loose any money as a result of any more bank trouble.

Politically nu labour and its leadership will try to save its skin however it can....

However I do think the cash saver is in very great danger of loosing out due to high inflation and the falling pound values.

But I also think that the investor of stocks or metals is in even grater danger of loss.

Whatever my personal viewis still to spread it about or place it all in nsi and avoid stocks.

Im sure others will have another spin on what to do.

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...The rest is in NS&I (100% secure) and thats where I will stuffing more, and more...

Northern Rock now carries the same guarantees for depositors as NS&I (100% guarantee on all deposits regardless of amount) so I've just opened a Tracker account for 'easy access' money. It doesn't carry the interest rate rewards or rate guarantees of the 'Kaupthing' account I've just withdrawn from but at least the money won't disappear into thin air as it would if the Icelandic banks eventually run out of cash!

I have other cash distributed amongst West Brom & BM building societies and ICICI & Co-Op banks but due to my circumstances, I have to have some fixed rate term deposits as some kind of income 'security' (if that's possible at the moment!)

Tucksy

Edited by Tucksy

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It was just on Moneybox that the FSCS guarantee for savers is across all subsidiaries of a bank, so you should only hold £35,000 in any of their group companies.

Thsi is scary as I have no idea who owns what - I only found out the other day when investing in the Lloyds TSB fixed rate ISA that they own Cheltenham & Gloucester (because I was transferring from there).

Does anyone have a list or can we compile one??? I 'm somewhat troubled by this I must say.

Have a look at the small print for things like "Halifax is a trading name of Bank of Scotland plc" or "Cheltenham & Gloucester is a trading name of Lloyds TSB".

Natwest is under a different licence from Royal Bank of Scotland, so you can can put £35k in both of them despite the fact that Natwest is owned by RBS.

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I have other cash distributed amongst West Brom & BM building societies and ICICI & Co-Op banks but due to my circumstances, I have to have some fixed rate term deposits as some kind of income 'security' (if that's possible at the moment!)

Tucksy

Tucksy, Birmingham Midshires demutualised a good few years ago and is now owned by HBOS. I also have savings in the West Brom, whose rates have been reasonable (relatively speaking).

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Hi.

The 35K "guarantee" is indeed limited to a cap of £4.4 billion payout per year:

FSA Press Release

expanding the overall financial capacity of the scheme - up to a maximum of £4.4 billion per annum

If a big bank goes, YOU WILL NOT get 35K - there is not enough money in the scheme. In fact, I doubt you'll get anything! The scheme is just to give people confidence, it's not supposed to ever be used in a large scale crisis 'cos it can't possibly deliver...

Rather than spread your cash just around the UK banks, why not also put money into safer currencies, such as the Swiss franc, Euros and heavens forbid Gold?

Regards,

crude.

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Hi.

The 35K "guarantee" is indeed limited to a cap of £4.4 billion payout per year:

FSA Press Release

If a big bank goes, YOU WILL NOT get 35K - there is not enough money in the scheme. In fact, I doubt you'll get anything! The scheme is just to give people confidence, it's not supposed to ever be used in a large scale crisis 'cos it can't possibly deliver...

Rather than spread your cash just around the UK banks, why not also put money into safer currencies, such as the Swiss franc, Euros and heavens forbid Gold?

Regards,

crude.

Excuse my ignorance, but how exactly is that done? I mean the currency thing? I'd like to explore that possibility (not gold - it seems a bit high).

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Hi.

The 35K "guarantee" is indeed limited to a cap of £4.4 billion payout per year:

FSA Press Release

If a big bank goes, YOU WILL NOT get 35K - there is not enough money in the scheme. In fact, I doubt you'll get anything! The scheme is just to give people confidence, it's not supposed to ever be used in a large scale crisis 'cos it can't possibly deliver...

Rather than spread your cash just around the UK banks, why not also put money into safer currencies, such as the Swiss franc, Euros and heavens forbid Gold?

Regards,

crude.

Yes the FSA scheme is nothing but an illusion it will never be used because its not fit for the job thats why we never used it for the NR!

However I would be very very cautious about shifting money to other currencies a shift to swiss will cost a packet in charges and admin swiss banks are very expensive and shifting to Euro is uber danger as that one is building up for a BIG fall....the political and economic tensions within central europe will I predict erupt within 6 months.

My advice is if you intend staying in UK keep your cash here in ns&i.

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Excuse my ignorance, but how exactly is that done? I mean the currency thing? I'd like to explore that possibility (not gold - it seems a bit high).

Hi Lucinda.

You've got 2 options (or maybe more - others will know a lot more than me about this):

  1. Physically purchase the foreign notes

  2. Buy a money-market fund in the currency of choice

Option 1 isn't very practical as you've got to safely store the notes + you won't be earning interest on the money.

Option 2 is the way to go. Buying money market funds is basically investing in good quality short term debt. It's the equivalent of putting your money into a foreign bank. In terms of risk, it's about as safe as you can get, but still not 100% risk free.

If you want to go with the Swiss franc, try something like Swiss confederation bonds. You should be able to purchase these instruments using your broker. I've never actually done this as I've invested in gold, so some research / investment advice is recommended.

Hope this is helpful,

crude.

Edited by crudeFool

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  • 296 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


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