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Nationwide

With the proposed takeover of Cheshire and Derbyshire building societies by the Nationwide, I have the following question for those of you that are able to offer help.
My wife and I have £35,000 each in both Cheshire and Derbyshire which at present is guaranteed under the present laws, my question is what will happen to the guarantee when they are all under the control of the Nationwide, are we then restricted to just £35,000 each instead of the £70,000 that we are covered for at the present?
Thanks in advance for your replies.

Comments

  • opinions4u
    opinions4u Posts: 19,411 Forumite
    Once the merger is complete, they will almost certainly be classed as one organisation. Therefore only covered up to £35k.

    That said, I still hold the view that for a significant failure the FSCS is useless.
  • opinions4u wrote: »
    Once the merger is complete, they will almost certainly be classed as one organisation. Therefore only covered up to £35k./quote]

    That's what I suspected, however should I leave over the £35K on account what's the chances of the Nationwide going down?
  • Just had a thought .:rolleyes: Wasn't the FSA were going to increase the savings guarantee limit to £50000 this September but have not heard a word since.
    Has anybody heard anything regarding this?
  • I don't think there was a firm timetable, and I for one haven't heard anything definite.

    And I really wouldn't lose sleep about being over the limit. If you are losing sleep, you need to do some transferring of funds (possibly to worse paying accounts), or keep the whole lot under your mattress. ;)
    "The trouble with quotations on the Internet is that you never know whether they are genuine" - Charles Dickens
  • Toastie
    Toastie Posts: 389 Forumite
    I looked at the savings accounts for both firms and they seem rather low? Possibly transfer to a higher savings rate account?

    If you wish you can maintain the money in the accounts if you make them joint accounts (which is 35k protection and a joint pools the limit making 70k).

    Also if they are in different names doens't this mean you will be fine because it is 35k per person?

    Correct me if i'm wrong but that is how i understand it.
    8,000 / 10,000 saved. Another 2,000 by April 2011!
  • Toastie wrote: »
    I looked at the savings accounts for both firms and they seem rather low?
    I can't speak for the Cheshire, but last month my partner and I took out a two year savings bond with the Derbyshire at 7.01%.
    "The trouble with quotations on the Internet is that you never know whether they are genuine" - Charles Dickens
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