Nationwide International IOM

martypops

This is the first time I have actually used a forum so apologies if this means nothing to anyone!

I have an amount of savings in Nationwide International in excess of the Government's revised protection scheme, i.e. £50k, There are two accounts, both joint, and if I understand the information, corrcetly this covers one account in one institution to a maximum of 100K for the joint account, so one account is exposed.

However, here is the point. In the Isle of Man where Nationwide International is a subsidiary of Nationwide Group (UK), they operate a protection scheme which is 15K for savings accounts (double for joint accounts) - again only covering one account in a savings institution - but... what I don't understand is how much protection I have as, in the terms and conditions of Nationwide Building Society UK, it says 'Nationwide guarantees the savings in all it's subsidiaries' -

So, does this statement apply to UK domicile subsidiaries and, off-shore savings subsidiary companies. Does it go further than the Government's protection scheme? Does it protect 'second' accounts that do not fall into the current savings protection available? My conversations with the IOM have only confirmed the £15K cover - no mention of the UK head office 'guarantee'. I need a lie down now before the next financial catastrophe hits us. So perhaps someone out their has a better understanding of these things than I do!

ctdctd

IOM scheme is now 50K but could take many years to pay out as there is no kitty. It is raised on demand from the other banks at £500K per bank per year max.

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

The IOM scheme would only come into operation if the Nationwide group was unable to repay any deposits.

HTH

rich68

I don't think the NW are guaranteeing anything as such, just that the head office is more likely to pump money into its IOM branch should the need arise to keep it afloat. If it sinks then you are probably back to the IOM guarantee which is 75% of 15k (soon to be increased to 100% of 50k).

ctdctd

rich68 wrote: »

I don't think the NW are guaranteeing anything as such, just that the head office is more likely to pump money into its IOM branch should the need arise to keep it afloat. If it sinks then you are probably back to the IOM guarantee which is 75% of 15k (soon to be increased to 100% of 50k).

Not true - from the NW International site:-
http://www.nationwideinternational.com/home_files/guarantee.htm

"Legal undertaking given by Nationwide Building Society


Nationwide Building Society, who have assets in excess of £179 billion guarantees to discharge the liabilities of its wholly owned subsidiary, in the very unlikely event that Nationwide International Ltd is unable to meet those liabilities from its own assets."

And the IOM guarantee is already 50K - act passed on October 9th.

HTH