£35k savings guarantee - does a merger affect it?

rjgb

I understand that the first £35k of savings that a person has in one institution is guaranteed.

If I had £20k saved with Lloyds TSB, and a further £30k saved with Halifax, should I now be looking to move some of those savings to a completely separate institution as my combined savings in Lloyds TSB HBOS would be £50k? Or will the guarantee apply separately to each of Lloyds and Halifax after the merger?

Thanks
RJGB

dunstonh

For the time being they are operating under two licences. That will be the case for quite a few months.

exel1966

When they finally do merge (late 2008/early 2009 at current estimates) then yes your savings will only be guarnteed up to £35K so you will need to find another home for £15k. Due legal process and legislation changes have to be made before they become one.
Until that time your £50K is safe.

YorkshireBoy

exel1966 wrote: »

When they finally do merge (late 2008/early 2009 at current estimates) then yes your savings will only be guarnteed up to £35K

That's *if* they run with the one banking licence/registration of course (RSB didn't bring NatWest under it's licence).

Then again, the Government/FSA may insist (as part of the deal) they run with two separate licences.

rjgb

Thanks all for your comments. It is possible then that, as more banks merge, there is potential for less of people's money to be guaranteed in this way. As far as I am aware this has not been publicised.

Is there a quick way to find out which banks share licences?

My savings and my wife's savings are in a variety of different accounts with different providers: First Direct, Alliance & Leicester, HSBC, Barclays, and Bradford & Bingley at last count. Do any of these "overlap", as far as you know?

YorkshireBoy

rjgb wrote: »

Do any of these "overlap", as far as you know?

http://www.moneysavingexpert.com/savings/safe-savings#whatcounts

http://www.fsa.gov.uk/register/home.do

espresso

Strange how it's just about a year since Darling announced plans to make changes to the banking system in order to offer more protection for people's savings in the future.

Alistair Darling made the suggestions in the Times newspaper.

The changes would mean an increased guarantee for people's savings of up to £100,000 in the event of a bank crisis.

source here

rjgb

Thank you very much YourkshireBoy. Very helpful!

Maybe I should have searched the MSE website a bit more thoroughly first, though... :rolleyes:

naab00

I am a Trustee of a charitable trust and am wondering (hoping!) the £50K protection applies to us.
Can you/anyone tell me if this is the case and its not just for individual savers?
Thanks, Neil

Baldur

naab00 wrote: »

I am a Trustee of a charitable trust and am wondering (hoping!) the £50K protection applies to us.
Can you/anyone tell me if this is the case and its not just for individual savers?

Suggest that you check the position of charitable trusts with the FSCS Customer Services Team.