Over the 50k limit

dartmoor_liz

I've been careful and not exceeded the guarantee limit in any of my savings accounts. Now however with banks merging etc I find I am in some instances over the threshold through no fault of my own. I am unable to withdraw money as the savings in question are fixed for a year. I'm trying to persuade Santander of the unfairness of this, but not expecting to win the argument.

baby_boomer

You won't win IMHO but it's worth a try on a matter of principle. I'm in the same position over the Nationwide/Derbyshire/Cheshire BS merger (but only just and with the Nationwide's strength and proposed recapitalisation via PIBs I'm not too worried).

The fair thing would be to allow withdrawals but if they did that publicly, they could lose a lot of money in one day and precipitate a run, so I can't see it happening.

Reaper

I don't think you will have much luck either.

On the bright side the government seems willing to cover balances over £50k, and by all accounts Santander are one of the strongest banks in Europe.

slipp_digby

My father asked this question to the Derbyshire when the merger with the Nationwide was anounced. I believe he is yet to get an answer.

It does seem rather unfair.

nzseries1

dartmoor_liz wrote: »

I've been careful and not exceeded the guarantee limit in any of my savings accounts. Now however with banks merging etc I find I am in some instances over the threshold through no fault of my own. I am unable to withdraw money as the savings in question are fixed for a year. I'm trying to persuade Santander of the unfairness of this, but not expecting to win the argument.

I agree it's unfair too... but what do you want them to do about it?

dartmoor_liz

I would like there to be a period of say 30 days when you could withdraw money if so wished. After all the conditions under which the money was invested have changed. My Bradford and Bingley certificate states "this remains the property of Bradford & Bingley", clearly it doesn't! I'm assured that Santander is huge and safe, so in that case I replied they won't mind giving me back my modest investment- ah well that's different...

fatpig_2

dartmoor_liz wrote: »

I've been careful and not exceeded the guarantee limit in any of my savings accounts. Now however with banks merging etc I find I am in some instances over the threshold through no fault of my own. I am unable to withdraw money as the savings in question are fixed for a year. I'm trying to persuade Santander of the unfairness of this, but not expecting to win the argument.

Why worry. The UK government has ensured that nobody with over £50K in N Rock, b+B, Icesave, etc. has lost a dime. So why would anything change now?

paul5046

nzseries1 wrote: »

I agree it's unfair too... but what do you want them to do about it?

The governemt could change the rules to cater for this anomoly.

opinions4u

If your circumstances allow, would you be able to transfer any of the accounts in to joint names? Might be a way round it.

To be honest, I don't think you should worry. The government has backed all the banks in a way that makes your savings as safe as they can get.

I'd rather have positive government backing for the banks and a £50k limit than little or no backing and an unlimited compensation scheme that couldn't actually afford to pay out if a bank collapsed.

savetilibleed

dartmoor_liz wrote: »

I've been careful and not exceeded the guarantee limit in any of my savings accounts. Now however with banks merging etc I find I am in some instances over the threshold through no fault of my own. I am unable to withdraw money as the savings in question are fixed for a year. I'm trying to persuade Santander of the unfairness of this, but not expecting to win the argument.

I transferred my internet savings from Abbey to YBS last year. Then in May transferred my cash ISA's to YBS too. OK YBS seem safe, but since then I have started moving stuff around. But the ISA + bond is stuck there as I had a certain amount of hassle transferring the ISA out of Abbey so reluctant to do go through that again. These and the Intenet saver amount to about £77000. In orcer to get in with another fixed interest deal before they close I could open another YBS bond and transfer my £20000 keeping it stuck and I suppose vunerable.

What do you think? Daft?