HBOS 6 month bond - risky?

tawse57

I am thinking of putting 20K into a HBOS 6 month bond at 7% - is this a sensible or stupid thing to do now in the current climate regarding the apparent precarious situation surrounding HBOS?

flossy_splodge

Invest and stop worrying! There's nothing much wrong with HBOS and with LLoyds behind them there's even less to worry about. If people made the effort to understand what was really going on and didn't panic we wouldn't have these 'runs' and it would all settle down in time. Look back at History. What goes up, comes down. Its just a matter of timing.! That's how the city makes its money! I realise 'greedy' financiers' are to blame for it all but did the share holders complain when the stocks were rising and the mortgages were there to be had. Maybe all can learn a lesson here about not being gung ho and tempering 'enthusiasm' for good deals with a little bit of common sense.:rolleyes:

tawse57

Anyone know whether HBOS and Lloyds will come under the same FSCS licence for 35K savings or remain separate?

Lokolo

They will remain seperate.

M_Thomson

Lokolo wrote: »

They will remain seperate.

Unless you are Andy Hornby or Eric Daniels you cannot say that for sure. Nothing has been confirmed yet.

Lokolo

Yes but in 6 months time Lloyds may not have taken over HBOS yet. Whats your point?

cheekykid

I have made a similar thread asking if this 7% account is to be reckoned with. Is it? I cant see a better rate elsewhere

donnykebab

Will Howard and his amusing and entertaining commercials be safe with all this uncertainty - its very worrying.

1882

tawse57 wrote: »

Anyone know whether HBOS and Lloyds will come under the same FSCS licence for 35K savings or remain separate?

Certainly separate for a year or two till the deal goes through. It's £50k from Tuesday or possibly 100% of all deposits even sooner as the Germans have done that and if we don't rich folks will be transferring wholesale!

jamesd

It's safe enough though for added peace of mind it might be a useful idea to split it into several chunks and put each into a different bank so that you don't have to worry about it all being involved in FSCS payout or company takeover at one time. It's easily within the savings limit of the FSCS so the money itself is safe.

opinions4u

M_Thomson wrote: »

Unless you are Andy Hornby or Eric Daniels you cannot say that for sure. Nothing has been confirmed yet.

Put it another way.

To merge the licences would require an act of Parliament.

To want to merge the licences (and send investors with £35k in each scurrying away elsewhere) would be commercial suicide at a time of a funding crisis.

It won't happen in the next couple of years and will probably never happen.