HBOS / LLoyds £35000 savings guarantee

gs121

Hi

I have savings with Lloyds TSB and Halifax both of which have protection in place for the first £35000 of savings.

What happens when they merge? Will my accounts with both banks seperately have the guarantee i.e £70000 of cover or will they only have one guarantee for £35000?

opinions4u

They will retain two banking licences for the short to medium term.

This means £35k in each institution remains covered.

In the current climate, it would be foolish of them to merge the bankng licence when they don't need to.

Longer term this may change.

roddydogs

Isnt IF part of Halifax

opinions4u

roddydogs wrote: »

Isnt IF part of Halifax

Yes, part of the HBOS banking licence.

gs121

Hi

I have just been in to my local Halifax branch.

The manager stated that they had an email from head office stating that the £35000 protection would now only apply once to all accounts held with Lloyds or HBOS.

They even let me close a fixed term bond without penalty!

Fella

gs121 wrote: »

Hi

I have just been in to my local Halifax branch.

The manager stated that they had an email from head office stating that the £35000 protection would now only apply once to all accounts held with Lloyds or HBOS.

They even let me close a fixed term bond without penalty!

I just rang Bm Mids.

They were 100% certain that the £35K protection does NOT yet apply only once to all accounts held with Lloyds or HBOS. They said that would only happen when the deal completes (currently mooted for end of December apparently) & that even then no decision had yet been taken on whether the separacy (& the two separate £35K limits) would be maintained.

So at least one of your branch manager & Bm Mids helpline don't know what they're talking about.

On balance I'd guess it may be your branch manager who is misinformed since the person I spoke with was convincing, however I'm starting to doubt my own name this week so anything is possible.

gs121

Who knows, the Branch Manager said that he had been informed of this by Head Office this morning.

Still I think err on the side of caution in this case as it seems that no one knows for sure!

Fella

My GUESS would be that HeadOffice have probably sent out some kind of Dummies FAQ & that the £35K limit question is on there in relation to the newly-formed entity (once it's formed)....but the branch guy has misunderstood it. Who knows though.

Fella

http://www.guardian.co.uk/money/2008/sep/18/savings.banks1
I have savings in the Halifax and in Lloyds. What should I do?

Until the deal is done and dusted, which could take some months, the two banks will continue to be treated as separate institutions, so customers will get protection for the first £35,000 they hold in each. So you don't need to panic and move any money, unless you have more than £35,000 in one of the banks, in which case it would be prudent to move some. Even after the merger customers may still get protection for both sets of savings - it depends how they are authorised by the regulator.

Mikeyorks

gs121 wrote: »

Hi

I have just been in to my local Halifax branch.

The manager stated that they had an email from head office stating that the £35000 protection would now only apply once to all accounts held with Lloyds or HBOS.

They're talking rubbish - and you're posting it!

Post #2 is wholly correct. For the short / medium term they will operate to the separate licences currently in place - therefore the protection remains separate until / unless they decide to merge the licences.

gs121

Don't have a go at me Mike.

It is perfectly reasonable that I believe the Manager of a Halifax branch.

Yes he might be talking rubbish but I am entitled to post and the matter needed discussing.