Halifax International (IOM) new account jitters!!!

mahar

I've just got through the opening process for the Halifax International Fixed Rate Regular Saver - had planned to put £2k a month from a UK building society savings account. The difference for me is about £400 extra interest a year.

The rate isnt fixed until I credit it via standing order on 22nd October.

I now admit I am having jitters (I am also an unlucky Icesaver , but not with very much funds there) about transferring this money to an offshore account (its Isle of Man)

On the other hand (despite its share price spiral) I think , well, its HBOS, its been rescued by Lloyds TSB and maybe it will be ok....

I am not after advice (obviously) but I wondered if anybody had any facts or opinion that might help me in my decision over whether to abort this idea or not?

Many thanks in advance

I,_Brian

Isle of Man is a lot more secure - not sure if it's in the news yet, but the Manx government if it hasn't already will be guaranteeing savings up to £50,000 - and the Manx government has triple A credit ratings, so that's a guarantee that means a lot more than from Iceland with junk status.

Personally, I'm emptying my HBOS exposure well below the guarantee limit - it's still a very unstable company.

You might want to consider contacting Nationwide Offshore banking based in the Isle of Man, as I've heard it suggested they have a 100% guarantee rate.

mahar

thanks very much for that Brian, very helpful.

your point about the credit rating is well made, and I suppose it would be a shame after spending 6 weeks trying to get it opened to abort at the last minute!

once bitten twice shy, is all!

does anyone else have an opinion?

nicko33

I,_Brian wrote: »

Isle of Man is a lot more secure - not sure if it's in the news yet, but the Manx government if it hasn't already will be guaranteeing savings up to 50%

I think you meant £50,000

see this thread for more info
http://forums.moneysavingexpert.com/showthread.html?t=1210243

MigsyBigsy

just wondering why the Halifax Regular Saver was not on Martin's top of Regular Saver lists...

anyone??

Milarky

MigsyBigsy wrote: »

just wondering why the Halifax Regular Saver was not on Martin's top of Regular Saver lists...

anyone??

Because the protection was limited to 75% for the first £20k (i.e. no more than £15k). Most thoughtful people could see that was dodgy at the time well before Iceland. Now with 100% protection it ought to be 'safe' to recommend it - but is not worth doing so since the current rate will not be available in 2 weeks time (so a lot of people trying might miss out)

danp2

I have a Lloyds offshore dollar account on the IoM, and thought I'd better have a look at the depositors compensation scheme.

As mentioned it's now up to £50k

http://www.fsc.gov.im/investor/dep_comp.xml

Was a bit concerned by this line tho:

"
Compensation is paid out of levies collected from other deposit takers in the Isle of Man. Levies are collected at a maximum of £500,000 per deposit taker per year. As there are a limited number of deposit takers which pay levies, compensation may not be paid immediately. The repayment period will also vary according to when liquidation proceeds are collected from the failed deposit taker and how much is recovered, as well as whether any other funding is available. There is no "standing fund" of compensation (i.e. money is not collected before a bank failure).
"

Sounds to me like it could take a very very long time to get the money if the worst did happen.

Maybe I have read too much into that, but the exchange rate is in my favour compared to what it has been, most of my savings are in Iceland at the mo', and I'd been thinking of doing it anyhow... so transferred the bulk of my $$ onshore today. And I guess I think I'd be more likely to get my money back if it was over here, especially after my Iceland experience.

Once bitten, twice shy I'm afraid.

I,_Brian

nicko33 wrote: »

I think you meant £50,000

see this thread for more info
http://forums.moneysavingexpert.com/showthread.html?t=1210243

Apologies, yes - you're right. That goes from posting late.

Short_Seller

They are both UK bank subsidiaries and the UK goverment has aready stated it will do what ever it takes to protect savers.

Look what happened with Northern Rock ,Alliance & Leicester & Bradford & Bingley did anybody including offshore savers lose anything when they were bailed out in one form or another? Answer clearly is no!

People need to take a step back and rememember if your with a UK based bank or mutial then there is nothing to worry about.