What is classed as separate accounts

skronk · 17 September 2007 at 9:21AM

If my wife and I have a Gold account each and a Silver account each, for safety purposes do we have 4 separate accounts albeit they are with the one bank. I case of collapse/difficulty we would be covered to the extent 4 x 35k ?

Thanks

Primrose · 17 September 2007 at 9:50AM

I don't like posting if I don't know the right answer but my understanding is that if you are separate account holders, both of you will be entitled to the compenstion limit, but this would be the amalgum of all accounts in your own name, so if the balances are more than the compensation limit, that is all you would get. If you're that concerned, it would be wise to move the excess to another institutuion

silvercar · 17 September 2007 at 10:13AM

From reading the FSCS website, I would think you are each covered separately but all your accounts with the same institution would be amalgamated. So you would have 2 x 35k.

plusman · 17 September 2007 at 10:59AM

Does anybody know if different banks owned by the same institution are separately covered, or covered jointly? For example, let's say I have savings invested with the Halifax, Intelligent Finance and Bank of Scotland - all part of the HBOS - would I be covered indeptendently by each of those banks (i.e. up to a maximum of 3 X £35k) or would it only be covered once by the umbrella institution (HBOS) i.e. only up to 1 X £35k?

gt94sss2 · 17 September 2007 at 11:32AM

plusman wrote: »

Does anybody know if different banks owned by the same institution are separately covered, or covered jointly? For example, let's say I have savings invested with the Halifax, Intelligent Finance and Bank of Scotland - all part of the HBOS - would I be covered indeptendently by each of those banks (i.e. up to a maximum of 3 X £35k) or would it only be covered once by the umbrella institution (HBOS) i.e. only up to 1 X £35k?

It depends if these institutions have their own banking licences or not - if they do, then they are covered independently.

In the case of HBoS, Halifax, Intelligent Finance and Bank of Scotland were all covered separately - however, HBoS announced ages ago, that from today they would all share the same licence - nothing to do with Northern Rock's problems..

Regards
Sunil

chis_2 · 17 September 2007 at 11:59AM

I share some of your concerns about the security of savings over 35k.

Am I correct in saying that if you save with NS&I - 100% of your savings are secure regardless of its amount? (NS&I are directly backed by the tresury ((a bit like northern rock!)) and quote on their home page that money that you invest with them is 100% secure)

Is there any substantial drawbacks with investing in this agency? (I understand that the interest rates are not "super" but for the investment amounts that are being discuss - they are not that bad - are they?)

regularsaver1 · 17 September 2007 at 6:42PM

http://www.halifax.co.uk/HelpCentre/blc.asp?tag=HOME5

Halifax licence changes

What is classed as separate accounts

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