How would you advise on this dilemma?

Mikeyorks

If she's getting 'monthly' interest then presumably she has a current account? If that's outside HBOS ... then she should be able to deploy the excess there, with no problems over ID.

But it's a tougher call if the current account provider falls totally short of having a product close to the SAGA rate. But I would split it .. the rescue precedents to date are not necessarily going to continue at the same level.

jack_spratt_2

I myself would not break the £50,000 golden rule !! things that have been unthinkable just 6 months ago are not now !! who is to say that what is unthinkable now will not be in another 6 months.
Its getting harder to get anything like a decent rate now !! as she is not very mobile a postal or telephone account account could be useful if you could find one which is easy to operate with a reasonable rate .
The Leeds BS always used to do quite good postal accounts

soulsaver

a) Is she married/ co habiting with partner she can trust? Go joint ac.
b) If Halloydsbos goes mamaria verticulus we are in BIG trouble... and HMG may not afford all deposits.

If it is Saga, even pre-supposing the Lloyds takeover, it would be political suicide for any Party not to guarantee pensioners savings.

c) Is that a wind up? Saga is for over 50s, not just for pensioners...
And before you ask - yes you can have a joint account with an under 50 partner...:cool:

Personally - I'd go to the trouble of spread around. There are ways to prove id to banks without passport & driving licence. But 'b' says she hasn't got much to worry about 'cos most of the others would have also gone sooner....

Ian_W

Mikeyorks wrote: »

But it's a tougher call if the current account provider falls totally short of having a product close to the SAGA rate. But I would split it .. the rescue precedents to date are not necessarily going to continue at the same level.

It would be very difficult for the current [or a future] government to justify covering the above £50K savings in an Icelandic Bank then not do so with a UK bank, particularly one they forced into a shotgun wedding!! If a bank the size of the combined LTSB/HBOS was allowed to go T1ts-up I very much doubt the FSCS could cope even up the £50K limit, no I'd go further it couldn't cope. If the UK Govt didn't or couldn't nationalise it to prevent it going bust I very much doubt any bank would survive and we'd all need a quick retraining programme on the art of bartering in the new "post-money" world.

Presumably she currently has £50K+ in Saga yet sleeps soundly at night? Why worry her if she's happy with the status quo particularly given the difficulties of opening another account. When the merger goes through in the new year do you think the new bank, one of - if not the - largest in the UK, will be safer than HBOS?

Sometimes ignorance is bliss. What's there to say that if you do tell her and she puts in the Barkingside Mutual and that goes bust? She'd probably [possibly] be covered by the FSCS, maybe!

Just a different perspective!

soulsaver

jack_spratt wrote: »

I myself would not break the £50,000 golden rule !! things that have been unthinkable just 6 months ago are not now !! who is to say that what is unthinkable now will not be in another 6 months.

The Leeds BS always used to do quite good postal accounts

Agreed - and look at Kent Reliance, Yorkshire Bank, Capitol One, Cov BS, West Brom BS. All were doing good postal FTBs.

Liz_the_Whizz

NS&!'s Guaranteed Growth Bond @ 4.2% for 1 year is postal too - worth a look given security of savings.