Banks with Negative Outlook

Ashlion

I was reading about the top ten savings accounts on this site today, and although the first three have excellent rates of interest (1. Kaupthing EDGE 6.55%, 2. Birmingham Midshires 6.52%, and 3. Bradford and Bingley 6.51%), looking at FitchRatings.com - banks 1&3 has a "Negative" Outlook and 2 is unlisted. I am not sure what to make of this. As I know that with many banks up to £35,000 of your savings is protected in the event of bank insolvency. However, it doesn't sound like a great outlook to start opening an account with. Can anyone offer any advice on this dilemma?

Masomnia

I shouldn't worry too much. The chance of a bank actually collapsing is tiny.

If you think back to the Northern Rock problem, no savers lost any money. A bank collapsing would be too catastrophic for the economy, they didn't and wouldn't let it happen. If you save less than £35k then there's no reason to worry.

Birmingham Midshires isn't listed because it isn't a bank, but a building society.

ManAtHome

BM is part of HBOS - don't think it has a separate license.

Masomnia

Me living in the past again... my apologies.