lloyds-TSB/HBOS

b.l.hayward

Now that the government owns over 40% of the combined group does this mean that all savings will be safe and not just the first £50k? Is it now effectively in the same position, guarantee-wise, as Northern Rock? Or maybe it means it is most unlikely they will be allowed to become insolvent and is therefore very secure for savers?

Stewster

Lloyds-TSB/HBOS is not guaranteed the same way as Norther Rock as the government only owns part of the bank and not the whole thing as in the case of Norther Rock. All it means is that with a 40% share of the bank, they would have a major interest in preventing it from going bust - to protect taxpayers investment. The Government wouldn't allow a UK based bank to go bust anyway as they have demonstrated over the past 18 months. You just have the 50k protection.

soulsaver

I think lots of people are interested in this topic ... but not sure anyone has a definitive answer. I'll hazard a guess that why you're interested is the same as me: Ive got a Guaranteed Saver Reward paying 6+%til Nov '09, in which allows additional deposits. As other FTBs come to maturity I'd like to bung 'em in for the 6%.... but I'd go above the guarantees... hmmm :think:

rb10

Look at http://www.halifax.co.uk/HelpCentre/hbosinfo.asp?!!!!!HOME1 , scroll down to "Are my savings protected?".

Yes, your savings remain protected exactly as they were before. Halifax and Lloyds TSB savings will continue to be covered separately after the new group takes effect, as both organisations will continue to be covered by separate banking licences for the foreseeable future.
This means you will continue to be covered for up to £50,000 (or £100,000 for joint accounts) of total savings across all brands covered by the Bank of Scotland plc banking licence (which includes protection for Halifax savers, and these other trading names and divisions: Bank of Scotland, Birmingham Midshires, Intelligent Finance, St James's Place Bank, St James's Place Private Bank, AA and Saga).
Lloyds TSB has five separate licensed banks, Lloyds TSB Bank, Lloyds TSB Private Banking, Lloyds TSB Scotland, Scottish Widows Bank and the Agricultural Mortgage Corporation Bank. Deposits you have with each of these banks will be protected up to £50,000 (£100,000 for joint account holders).
Should there be any changes to our banking licences in future, we will contact you to tell you about them in the usual way.

spluff

is this true?
would you be covered if you have money in Llyods TSB and Birmingham midshires?

withnell

Yes you would be covered for up to £50k with each, as BM is under the Bank of Scotland licence, and Lloyds TSB under the Lloyds TSB Bank licence

arcadia00

soulsaver wrote: »

I think lots of people are interested in this topic ... but not sure anyone has a definitive answer. I'll hazard a guess that why you're interested is the same as me: Ive got a Guaranteed Saver Reward paying 6+%til Nov '09, in which allows additional deposits. As other FTBs come to maturity I'd like to bung 'em in for the 6%.... but I'd go above the guarantees... hmmm :think:

That's how it came across to me and there must be thousands considering the same. HBOS also did a strong promo in Sept, Oct for an IASA Reward at 5.8% 1 year guaranteed. I'd say they are going to be deluged with maturing term deposits looking for a home through late 2009, with people cramming way over £50k into these.