Savings with A&L and Abbey - are they safe

jonny2510

Now that Alliance and Leicester have been taken over by Santander (has this been confirmed???) does that make it the same "financial institution" as Abbey?

Does this need to be taken into account when following the "Are my savings safe" article, and will the 35K FSCS allowance apply to each separate account (Abbey and A&L) or will it be split between the two of them?

YorkshireBoy

At the moment it's an offer, but the A&L board are recommending acceptance.

They say they have no plans to amalgamate the banking licence registrations, but you'd be well advised to keep a close eye on the situation.

More details here...

http://www.alliance-leicester-group.co.uk/html/santander/santander.asp
(click shareholder questions and answers...Q22 is the one you want)

jonny2510

Thanks for that, I'll keep an eye on it. Although fingers crossed it will stay as per the answer to Q22!

Andrew64

It is highly likely that A&L and AN will be merged to cut costs! As soon as you hear that is going to happen, make sure that the total amount in both accounts does not exceed 35,000 and put the extra elsewhere.

ed123_2

...no you will lose all your money....

jonny2510

ed123 wrote: »

...no you will lose all your money....

Helpful :rolleyes:

dwileflunker

ed123 wrote: »

...no you will lose all your money....

Based on what evidence? If you can't back up your statements don't make them.

Davesnave

ed123 wrote: »

...no you will lose all your money....

We have [EMAIL="tw@ts"]tw@ts[/EMAIL] like you on the house buying board too. Get a grip.....or get a life!

ctdctd

glastowinebar wrote: »

With this merger will account holders get a 'payout'?

No they won't as A&L and Abbey are banks and not mutual building societies.

dunstonh

glastowinebar wrote: »

With this merger will account holders get a 'payout'?

no. A&L was a plc.

chattycathyuk

Hi

I found this http://www.alliance-leicester-group.co.uk/archive/Shareholder-Q-and-A.doc

Q Will customers continue to get up to £35,000 protection from the Financial Services Compensation Fund in respect of deposits at both Alliance & Leicester and Abbey?

A Customers continue to get separate protection. Alliance & Leicester and Abbey for now remain two separate banks.
Money held with Alliance & Leicester is covered under the Financial Services Compensation Scheme (FSCS) and you will continue to receive protection separately to any other bank, including Abbey which is owned by Banco Santander. The FSCS protects 100% of the first £35,000 of deposits held with each bank.
You can find out more details about the Compensation Fund on the FSCS website at www.fscs.org.uk/consumer

Q Is my money protected under the Financial Services Compensation Scheme even if Alliance & Leicester is taken over by Santander, which owns Abbey in the UK?

A Even if shareholders accept the Banco Santander bid and the transaction completes, Alliance & Leicester will continue to be a separate bank, retaining its own banking licence. Money held with Alliance & Leicester will continue to be covered under the Financial Services Compensation Scheme (FSCS) and you will continue to receive protection separately to any other bank. This means customers’ deposits will be protected under the FSCS separately from any protection they may also have for deposits they may hold with Abbey.
The FSCS protects 100% of the first £35,000 of deposits held with each bank.
If, at some time after the completion of the acquisition by Santander, this was to change, we would share the changes with our customers so that they are fully informed.
You can find out more details about the Compensation Fund on the FSCS website at www.fscs.org.uk/consumer