Are Building Societies a Safer bet?

bristolleedsfan

Lynt wrote: »

Lots of people opening accounts in Principality when I went in this morning.
I hope that's a good sign.

U mean u think they might be opening accounts in hope of a merger bonus.

Joe65_2

HankMcSpank wrote: »

After these monumental events in British banking today, I'd not be sleeping easy if I had a wad in either an Irish Bank (their guarantee will likely be tested when all the deposits come hurtling back to the UK when folks realise it's safer in the UK) or a small building society.

Where do we stand w.r.t FSCS when these other foreign powers (such as with the Post Office) renege on their 'headline' Guarantees. Is FSCS still obliged to make up the shortfall (to 50K) even when it never expected to have to ?

cheggers

There is a large queue outside the Nationwide Building Society this lunch time, hope they don't know something I !!!












Forgot to say there is a sandwich shop next door!:T :T :T :T

apt

I can't see why the writer thinks that the British moves will cause runs on small local building societies. The savers in their local building society or German Sparkasse have confidence in them. The small institutions are not dependent on commercial markets and don't have a lot of dodgy loans on their books. If anything they will be helped by the reluctance to chase rates in a foreign bank and the reduction in saving and mortgage competition by the HBOS/Lloyds merger.

chris1

HankMcSpank wrote: »

...After these monumental events in British banking today, I'd not be sleeping easy if I had a wad in either ... or a small building society.

Surely small bulinding societies are covered to £50K by the FSCS in the same way as larger building societies or banks?

baby_boomer

opinions4u wrote: »

I think you are on dangerous ground to assume one type of financial organisation is safer than another.

I concur. The BSA may organise rescues, but many of the larger societies are under pressure of one sort or another, and Nationwide's statement re the rescues of the Cheshire & Derbyshire makes it clear that their priority is what is best for Nationwide, not the BSA.

Gorgeous_George

chris1 wrote: »

Surely small bulinding societies are covered to £50K by the FSCS in the same way as larger building societies or banks?

Not quite in the SAME way.

If a large building society went bust the pot of dosh waiting to refund depositers could run out (maybe a bit unlikely). If a smaller Building Society struggles or goes bust, they could be taken over by a larger one. If not, the pot if dosh will last longer.

I've just applied for a 6.25% cash-ISA with Principality.

GG

nilrem_2

I believe that our cash is safe in any UK building society as it is in a UK bank, AFAIAA no one has so far lost their deposit by saving in any UK bank or Building society, in fact the one thing that will cause problems is people panicking and pulling their cash out of one particular institution.

bazster

chris1 wrote: »

Surely small bulinding societies are covered to £50K by the FSCS in the same way as larger building societies or banks?

The correct answer to your question is: yes, they are covered in exactly the same way.

marcyj_2

That's great for you nilrem but I live in Guernsey where there is no protection and my money is with the Channel Islands branch of Scarborough BS. Not sure what to do to be honest. I was thinking of jumping the gun and accepting a pathetic rate at HSBC.