HBOS and Lloyds - separate guarantees?

tawse57

Will Lloyds and HBOS keep separate 50K guarantees once the take-over/merger happens? Anyone know?

StevieJ

tawse57 wrote: »

Will Lloyds and HBOS keep separate 50K guarantees once the take-over/merger happens? Anyone know?

They can do if they want.

tawse57

Um, that was not what I was hoping for - I can run naked down Oxford Street if I like.

Purple_Sparkles

I asked this question yesterday at my bank and was told that the £50k guarantee is per organisation, so HBOS and Lloyds would be one organisation not two.

If a couple have a joint account with HBOS for example the guarantee covers each person for £50k each, it does not matter that the account is joint. You have to check and make sure that your money is spread over various organisations if you have lots of it!

I don't know which banks belong to which groups but I'm sure somebody on here does.

Personally I would put my money into the few independent building societies that are left or bonds as I was told yesterday that you can have up to £40k invested in bonds per organisation too in addition to the £50k allowance.

Hope that helps.

tawse57

Thanks Purple - I have 22K in a Lloyds ISA and was about to put 40K into a HBOS 6 month bond which would put me well-over the 50K limit.

I also have 35K in Sainsburys but was told that it is separate.

RCB28

So I'm told ... some institutions merge but maintain their independent limit? Best to be safe though - if they merge - shift it! If in doubt phone the FSCS, they are really helpful in my experience in recent days of juggling finances....failing that we are going to have to shove it under the bed!
Lady in Lloyds the other day told me 'We're the safest bank'. Hahaha! If I could have physically raised an eyebrow I would have...sadly I'm not blessed with that gene so I smiled...not quite as effective.

opinions4u

They will retain two banking licences until they tell you otherwise.

The process of merging licences isn't straight forward and would take several months to complete.

For now,and probably for a good 12 months+, they will remain as separate banking licences.

Commercially, it would be suicide for the balance sheet to merge them! They don't want savers going elsewhere.

One added thought, with the government bail-out scheme in place, why the need for HBOS and Lloyds to merge? Me thinks the Competition Commission should now be objecting, whereas previously the merger was in the great public interest.

FairyElephant_2

opinions4u wrote: »

One added thought, with the government bail-out scheme in place, why the need for HBOS and Lloyds to merge? Me thinks the Competition Commission should now be objecting, whereas previously the merger was in the great public interest.

Aha - I'm glad I'm not the only one to spot this! I suggested this to a couple of friends yesterday....we wait with bated breath!!!!!!!!