£35K protection HBOS/Lloyds TSB - fixed accounts

silentfox

Anybody got or seen anything in writing from either HBOS/Lloyds TSB about how the £35K limit applies if you had £35K in both HBOS and Lloyds before the merger. I have contacted the press office of HBOS and sent email to Birmingham Midshires and Lloyds as well the FSA customer service department, nobody has confirmed the status. I know what the view is but just wanted an official statement.

Also if you had fixed rate accounts with both HBOS and Lloyds shouldn’t we be allowed to move the money (if only £35K protection applies between both) without penalty. I would like to move my fixed rate 6.5% ISA to Natwest which is offering 7.32% but would have to pay a penalty of 90 days interest. Surely as we didn’t know they were to merge we should be able to move the money freely.

It would be nice if they could clarify the situation as all the current top savings accounts (AA/Birmingham Midshires ) are all HBOS.

isofa

At the moment they are still separate entities, operating under separate banking licences, and may well operated under a separate licence for many years, depends what they decide to do.

The FSCS offers the protection, not the FSA.

If you have accounts with both HBOS and LTSB, each bank is currently is protected to 35K individually (or 70K joint) so if you have 35K in HBOS and 35K in LTSB you are protected to 70K, (if you have a joint account with 70K in HBOS and 70K in LTSB you are protected to 140K)

Paul_Herring

Also if you had fixed rate accounts with both HBOS and Lloyds shouldn’t we be allowed to move the money (if only £35K protection applies between both) without penalty.

Any 'merging' of the banks as far as the FSCS is concerned is likely to take a while, so if this worries you, stop taking out new fixed rate accounts with the institutions concerned.

All that said, if it comes to the point where, technically, the FSCS has to bail out LTSB/HBOS, getting hold of money will be the last thing on your mind.

GeorgeHowell

If they intend to maintain separate FSCS registration it would be in their best business interests to announce it as soon as possible. It may however not be possible, or be deemed inappropriate to do so, until the merger is formally completed.

edwinac_2

Paul_Herring wrote: »

if it comes to the point where, technically, the FSCS has to bail out LTSB/HBOS, getting hold of money will be the last thing on your mind.

You've said that about 500 times now! Are you the forum's resident bot?!

nzseries1

edwinac wrote: »

You've said that about 500 times now! Are you the forum's resident bot?!

As long as people continue to ask the same questions, tried and true answers are the best way to go.

Paul_Herring

edwinac wrote: »

You've said that about 500 times now! Are you the forum's resident bot?!

Oh dear - this appears to be personal vendetta, because I politely asked him not to sideline a thread I started with his own personal agenda.

Please, do feel free to comment on every other thread I've replied on. :rolleyes:

Or do what I've done to you, and put me on your ignore list. That way you won't boil over in religious indignation on every comment I make.

Edit: 500 times? You are perhaps confusing signatures with postings? Your post count indicates this may be a possibility.

dunstonh

Oh dear - this appears to be personal vendetta, because I politely asked him not to sideline a thread I started with his own personal agenda.

Makes a change for someone else to be a target. Thats normally my job Have you added IFA to your signature somewhere and I haven't noticed. Thats usually the troll magnet.

Paul_Herring

Have you added IFA to your signature somewhere and I haven't noticed.

Nope. Just recently (days) changed from the 'Trinary' one to the current 'LTSB' one.

How long's your ignore list?

opinions4u

Merging banking licences would take several months and would be communicated well in advance. At this stage, it isn't even an issue.

From a commercial point of view, I would expect them to keep separate licences to avoid a situation where some customers with accounts in both banks move £35k out.

Paul_Herring

opinions4u wrote: »

I would expect them to keep separate licences to avoid a situation where some customers with accounts in both banks move £35k out.

Warning: the following post contains stuff that, while I'd like to be true isn't.

<ignoring the current situation and slightly taking the whimsical>
I'd love to take £35K out of LTSB and stick it in KE or IceSave.

Trouble is I don't have that much in assets with them to do that.

Would I be charged interest?
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