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Are my Savings safe? Discussion Area
Comments
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I would say caution on taking notice of the paranoid who go over the top in trying to spread their money aroundI am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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The AA savings web page:It's also about time 'white label' operators were forced to publicise up front who manages their financial offerings.
The deposit-taker for the AA savings accounts is Birmingham Midshires, a division of Bank of Scotland plc, which is authorised for accepting deposits by the Financial Services Authority.
Sainsburys Bank Savings front page:
Sainsbury's Bank plc is authorised and regulated by the Financial Services Authority.
Whilst I'm grateful for Martin's research which gives the facts "at a glance" I'm fairly sure it is a requirement to say reasonably prominently which organisation is FSA registered to take deposits. I think the "white label" operators are less problematic than the likes of HBOS where previously independent bank/BS operations like B' Midshires are now covered under the same £35K as Halifax and BoS.0 -
Just been reading Martin's recommendations on top savings accounts. I already have accounts with B&B and Icesave and was working my way down some of the others...
- AA Internet Saver is a wrapper for Birmingham Midshires, part of HBoS
- Sainsbury's Bank savings account is administered by Bank of Scotland, also part of HBoS
- ICICI does not subscribe to the UK Banking Code (don't know status of it's FSA registration).
Would therefore urge caution, given compensation limits apply to each financial group and not each of its constituent parts. It's also about time 'white label' operators were forced to publicise up front who manages their financial offerings.
omis
Just confirming what other posters have said on this:
- AA is regulated under same registration as Birmingham Mid. That's why in the 'spread your savings' section we don't mention the B Mid 6.3% account which has restrictions, and picked AA instead.
- Sainsburys is regulated seperately to the rest of HBOS (inc. AA), so putting £35,000 in both will allow all of it to be secure
- ICICI is FSA regulated, so you are covered by the FSCS, just like any bank.
DanFormer MSE team member0 -
Martin recently said:money: in various media quotes (Radio 2) in the Nortnern Rock crisis that there is no need to panic, the Financial Services Compensation Scheme (FSCS) will cover all us savers upto £31,700 BUT is Martin aware? that the scheme is reported by Reuters to have only £4.4M in the pot??? thats hardly enough to pay off one early morning queue outside Northern Rock and even the FSCS website makes it very clear " Its still possible to conceive of a default (or combination of defaults) so big as to be beyond the FSCS ability to pay compensation upto our limits" all of a sudden all those people in queues outside of Nortnern Rock, don't look so daft after all and I will be doing my homework on any Bank or Building Society that I am thinking of placing my hard earned cash with and if that means accepting 0.25% less so be it
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The FSCS is funded by financial services companies (as low down as the local IFA right up to the insurance companies and banks). The annual levies are based on expected requirements. The Govt would meet any shortfall with the levies being increased in following years to fill the gap.
You have to look at this with realism. The odds of a UK retail bank going under are small enough as it is. The odds of the FSCS and Govt not having the funds to bail it out are tiny.
Remember that the retail banks have assets and the assets exceed liabilities. So, sales of assets should be able to repay Govt/FSCS assuming that a white knight doesnt come in to buy the failing bank requiring no drain on the FSCS.
There are things to worry about but FSCS funding is not one of them (not unless you pay the levy
) I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
With all the panic about savings, just wondering if yearley savings bonds are also covered by the £35K limit. Looking at savings bonds not investment bonds.0
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Savings bonds are covered by the £35K limit. However, please remember that this limit is for the total of all your savings (including any bonds) held with any one organisation.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0
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scouseneil wrote: »..... just wondering if yearley savings bonds are also covered by the £35K limit.
They are if the institution you choose is FSA registered.If you want to test the depth of the water .........don't use both feet !0 -
Does anyone know if the money we keep in a business current account covered, or is it only savings accounts?
MB0 -
Does anyone know if the money we keep in a business current account covered, or is it only savings accounts?
MB- The Scheme was set up mainly to assist private individuals, although smaller businesses are also covered.
- Larger businesses are generally excluded, although there are some exceptions to this for deposit and insurance claims.
Elsewhere on the site it defines smaller businesses as having a turnover of less than £1M pa. I don't think the type of account, ie current or savings, is relevent.0
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