Stubborn Grandparent

Mick_S_3

My first post here, but thanks to some of the information here and from Martin on Radio 2 I have a 70 % mortgage on a lifetime tracker at 0.25 above base rate. No amount to worry about on the credit card but unfortunately due to working part time no savings worth talking about.

Tonight, however, I became aware that my wifes grandmother has a 6 figure sum invested in solitary UK bank (RBS). The full amount wasn't disclosed to me but right away the alarm bells rang as the treasury will only guarantee £50k for each institution. Unfortunately she is of the opinion that the Royal is the bank she has been using for years and refuses to move any of her savings to another bank. I have tried to explain the financial implications should RBS fail, however unlikely that may be after the recent £400bn bailout, to her daughter who has passed on the information but at the moment it all seems to be in vain.

Has anyone else experienced similar situations with their elders or can offer some advice, although if telling someone they are in a position to lose 100K doesn't frighten them I'm not sure what will.

thanks in advance

Mick.

Day_Trader

To be honest with you I think you've touched on it already with the unlikeliness of RBS failing. If RBS or any UK bank fail then the value of the £ will be worthless and we'll all be looting. You've said all you can say to them so I wouldn't worry. The govt have part nationalised most banks and I cannot see them failing (see Northern Rock, Bradford and Bingley).

amistupid

Mick you are very fortunate that she has put her money in a bank, many old people don't trust them (who can blame them!) and still keep their savings in biscuit tins.
PS If I had a granny like that I'd be giving her lots of compliments and loads of birthday and xmas presents!:o

Reaper

I think all you can do is tell somebody the facts and let them decide for themselves. Bear in mind the government has so far ensured that no nobody has lost any money, even those above the limits.

Of course I would not recommend going over those limits if you can help it as they might not be able to afford more than the standard amounts if a few really big banks started falling over, but I wouldn't try to panic her about it either.

If it is a joint account the limit goes up to £100,000 if that's any use.

Riq

My Grandma (82 years old) has only just realised the full implications to this £50k limit thingy.

So tomorrow she is off to town with my mum to open a few bank accounts to spread her money a bit thinner so to speak.

I'd happily take it off her hands and 'invest' it in the "Riq wants a Merc Fund"! :cheesy: I kid of course:p

opinions4u

Riq wrote: »

My Grandma (82 years old) has only just realised the full implications to this £50k limit thingy.

So tomorrow she is off to town with my mum to open a few bank accounts to spread her money a bit thinner so to speak.

I'd happily take it off her hands and 'invest' it in the "Riq wants a Merc Fund"! :cheesy: I kid of course:p

Persuade Granny to give some away.

She'll never spend it herself.

And then the state will take it off her if she ever ends up in a nursing home. Or clobber her for an IHT bill.

Share it out now Granny!

StevieJ

Mick_S wrote: »

My first post here, but thanks to some of the information here and from Martin on Radio 2 I have a 70 % mortgage on a lifetime tracker at 0.25 above base rate. No amount to worry about on the credit card but unfortunately due to working part time no savings worth talking about.

Tonight, however, I became aware that my wifes grandmother has a 6 figure sum invested in solitary UK bank (RBS). The full amount wasn't disclosed to me but right away the alarm bells rang as the treasury will only guarantee £50k for each institution. Unfortunately she is of the opinion that the Royal is the bank she has been using for years and refuses to move any of her savings to another bank. I have tried to explain the financial implications should RBS fail, however unlikely that may be after the recent £400bn bailout, to her daughter who has passed on the information but at the moment it all seems to be in vain.

Has anyone else experienced similar situations with their elders or can offer some advice, although if telling someone they are in a position to lose 100K doesn't frighten them I'm not sure what will.

thanks in advance

Mick.

No offence but maybe she thinks you are after her cash.

pumpndump

Your gran is a sensible woman. RBS is where the queen banks. I can't see Her Britannic Majesty fussing and fretting over putting 50 Gs here, 50 Gs there. Be nice to your gran.