Is LLoyds TSB a safe bank ?.

NoOneReally

Hi,
I have a current account and internet savings account with Lloyds, and also a savings account with Halifax, I will be getting a lump sum of £8,000 in Feb and £122,000 in June, now can I just put the whole lot into the Lloyds savings account as I don't think Lloyds will ever fail !, or should I put £30,000 into Lloyds and £100,000 into Halifax (Halifax is a Joint account). The trouble is of course that Lloyds are going to take over the Halifax so I am not sure if I would still be covered by the £50,000 (£100,000 Joint) compensation limit ?.

Thanks.

islandannie

Not safe at all,

Infact I very nearly slipped on a dodgy doormat while going to make a deposit earlier today.

riad_2

Do as you've planned, i.e. spread your money in chunks of less than 50k (100k for joint accounts).

If I were you I would only worry about moving any monies after the future merger (which may be a while?) and only if after they merge their FSA registrations to become one FSA registered institution.

thornbridge

Speaking of which i have a mini isa with yorkshire bank via some Australian bank mlc i think what would happen if that went bust would i be covered by the fsa

bjorn_again

NoOneReally wrote: »

Hi,
I have a current account and internet savings account with Lloyds, and also a savings account with Halifax, I will be getting a lump sum of £8,000 in Feb and £122,000 in June, now can I just put the whole lot into the Lloyds savings account as I don't think Lloyds will ever fail !, or should I put £30,000 into Lloyds and £100,000 into Halifax (Halifax is a Joint account). The trouble is of course that Lloyds are going to take over the Halifax so I am not sure if I would still be covered by the £50,000 (£100,000 Joint) compensation limit ?.
Thanks.

Can anyone say what or where is "safe"? My own humble opinion is that unless we go one step beyond financial armagedon, Lloyds will not or will not be allowed to fail. Be practical, think of the consequences to the Nation if Lloyds went to the wall.

halight

Hi,
I dont think any bank at the moment is as safe as a bank!!! as thay say but loyds is in better shape than most. Having said that thay are buying halfax which is not in a good shape it has a lage amout of toxic debt on its books.
But dont worry too much our Gov is not going to let any of our banks go under.
But you should always make sure that your money is spred about a bit.

Neil_G_2

Hi - following on from a post I made earlier on the Lloyds TSB/HBOS thread - I work on behalf of Lloyds TSB and I wanted to direct you to the section of the Lloyds TSB website which has recently been set up to answer consumers’ questions about the proposed acquisition of HBOS: www.lloydstsb.com/hbosacquisition. I hope it gives an overview of the situation. Neil

altocumulus

NoOneReally wrote: »

Hi,
I have a current account and internet savings account with Lloyds, and also a savings account with Halifax, I will be getting a lump sum of £8,000 in Feb and £122,000 in June, now can I just put the whole lot into the Lloyds savings account as I don't think Lloyds will ever fail !, or should I put £30,000 into Lloyds and £100,000 into Halifax (Halifax is a Joint account). The trouble is of course that Lloyds are going to take over the Halifax so I am not sure if I would still be covered by the £50,000 (£100,000 Joint) compensation limit ?.

Thanks.

(Don't quote me on this) - but I doubt Lloyds will fail (or be allowed to - but you never can tell in these trying times)
- however as a customer I find their savings interest rates to be appallingly poor, and also tiered....

GeorgeHowell

I don't think it's been decided/announced yet whether Lloyds TSB and HBOS will retain separate banking licenses, or club together. Someone suggested a while ago that they may start separate and then slip merging the licneses in quietly at some later date. Since we clearly can't trust any of the retail banks one inch that can't be ruled out. Hopefully the financial press will keep on top of it and warn us in a timely manner if it happens. One thing to come out of all this is that the banks will now be watched like hawks by the government and its agencies, the press, and the public.

I read today that nearly all the top positions in the merged bank will go to Lloyds TSB execs, which has to be a good thing. Anyone who had anything to do with the Hornby reigme must on face value be very suspect.

isofa

I think it's a real shame they've been "forced" to merge with HBOS, always found LTSB to be a very good bank, been a customer since I was a teenager, I just hope HBOS doesn't tarnish their image.

Re the OP, LTSB are one of the safest banks in the UK IMO. Fitch rating varies from AA+ to AA- for the Bank and Group.

sabretoothtigger

They werent forced, they renegotiated a better deal even. They are just looking long term and have tried in the past to merge with banks and been refused permission, the price seems excellent to me. Its hardly a cheery situation but should be profitable eventually