Are Birmingham Midshires bonds safe?

ash_78

Hi all

I have a £50k bond in BM that I invested in July. If the unlikely occurs and HBOS go under, what would it mean for the investment? I've assumed all along it would be covered by the £35k guarantee (which as we know may rise to £50k). The optimistic voices in my head say BM would stay afloat even if HBOS collapse, or that bonds may be a higher priority when distributing funds back to creditors if it does file for bankruptcy, but the pessimistic voice says the government guarantee only applies to savings rather than bonds.

Can anyone please advise (and shut up these voices in my head)?

Thanks
Ash

whu

Hi

When you say bond - do you mean a fixed term savings bond eg for 1 year?

ash_78

whu wrote: »

Hi

When you say bond - do you mean a fixed term savings bond eg for 1 year?

Yes exactly - the 1 year version (around 7.25% from memory).

opinions4u

Assuming it's a savings deposit account then it's covered by the £35k.

Given that HBOS buy-to-let and sub prime stuff is fed through BM, I doubt they would survive a collapse in their own right.

ash_78

opinions4u wrote: »

Assuming it's a savings deposit account then it's covered by the £35k.

Given that HBOS buy-to-let and sub prime stuff is fed through BM, I doubt they would survive a collapse in their own right.

Right, good to hear I bought their "toxic" assets. :eek:

Fingers crossed then that BM survive in the case of a takeover or not. And failing that, the guarantee rises to £50k.

Thanks.

whu

this would count as savings and therefore you would be protected for £35K - investments have different compensation figures

ash_78

whu wrote: »

this would count as savings and therefore you would be protected for £35K - investments have different compensation figures

Thanks whu