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interesting times ! -question for the bankers..

If you have money in a bank, and that bank gets into trouble, what happens to your current account balance and your standing orders etc ? Do they freeze accounts for a day or two to get things sorted out ? Is it better to keep a cash float in the house just in case ? Or does it all flow seamlessly onwards..?

Comments

  • dunstonh
    dunstonh Posts: 121,288 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    its never happened and its unlikely to happen so its not really something to worry about.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • mardatha
    mardatha Posts: 15,612 Forumite
    K I just wondered ...ty
  • Does anyone know what the situation is regarding small businesses rather than personal savings. Our family business currently has around £100k with HBoS. Is the 1st £35K still protected? We are actively moving around £70K today.
    Also by "Financial Institutions" are insurance companies also included. We have £80k invested through Legal and General, who hold half of it with Yorkshire bank. Does anyone know where we would stand regarding this money?
  • dunstonh
    dunstonh Posts: 121,288 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    Does anyone know what the situation is regarding small businesses rather than personal savings. Our family business currently has around £100k with HBoS. Is the 1st £35K still protected?

    Small companies get the same protection. Large companies do not.
    Also by "Financial Institutions" are insurance companies also included. We have £80k invested through Legal and General, who hold half of it with Yorkshire bank. Does anyone know where we would stand regarding this money?

    unwrapped investments have investment protection (S&S ISAs fall under that too). Life and pensions fall under insurance protection. However, for unit linked investments, the protection is unlikely to be needed as unit linked funds are ringfenced away from the provider's assets. That is probably why the protection levels on investments and insurance contracts is higher than deposits.
    I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.
  • nicko33
    nicko33 Posts: 1,125 Forumite
    dunstonh wrote: »
    its never happened and its unlikely to happen so its not really something to worry about.
    as seen during the Northern Rock panic, internet access (and, I expect, telephone access) to your account becomes limited due to the site being flooded with requests.
    Over-the-counter service was also limited.
    The accounts weren't frozen, but your ability to change instructions was limited.
  • Lokolo
    Lokolo Posts: 20,861 Forumite
    Part of the Furniture 10,000 Posts
    Yes but do NR still exist? Yes.

    Therefore if people didn't bloody panic, services would resume as normal, therefore no problems would have occured.
  • nicko33
    nicko33 Posts: 1,125 Forumite
    Yes, but it was a stock answer to a different question than was asked.
  • mardatha
    mardatha Posts: 15,612 Forumite
    Nicko thats very clear, and thank you . I just didnt know . x Mary
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