Lloyds/HBOS Merger-£50,000 Limit

roddydogs

According to the Daily Mail Lloyds/HBOS merger means that their is only 1 banking licence covering any money, so this now Includes Lloyds that was previously seperate.......Martins guide still shows it to be seperate (includes IF, Saga, and Halifax..........update, Martin please!

tom188

Typical rubbish being spouted by the daily mail then....

From the Lloyds TsB website

Are my savings protected?
Yes, your savings remain protected exactly as they were before. Lloyds TSB and HBOS savings will continue to be covered separately under the Financial Services Compensation Scheme, as both organisations will remain covered by separate banking licences. The Financial Services Compensation Scheme protects up to £50,000 (or £50,000 each for joint account holders – £100,000 altogether) of the deposits in savings and current accounts you have with each separately licensed bank.
Lloyds TSB has three core licensed banks operating on the high street, Lloyds TSB Bank, Lloyds TSB Private Banking and Lloyds TSB Scotland, plus two further licences for subsidiaries, Agricultural Mortgage Corporation Bank and Scottish Widows Bank. HBOS operates under one single licence, which will remain in place and separate to the Lloyds TSB licences.
Any regulated investments you hold will be protected exactly as before under the scheme. Should there be any changes to our banking licences in future, we will contact you to tell you about them in the usual way.
More information on the Financial Services Compensation Scheme and full details of the companies covered by the different banking licences are available by clicking on the following link:

tom188

Actually the daily mail website is correct and does not say as you suggest...

http://www.dailymail.co.uk/money/article-1125162/THE-LAST-WORD-CHARLOTTE-BEUGGE-Suffering-savers-stuck-muddle.html

So you have to add up all the money you've got across the HBOS brands and the most you're covered for is £50,000. Lloyds TSB had five separate banking licences covering its brands. But again, it's complicated: if you've got money with Cheltenham & Gloucester, then you need to add that to any you've got with Lloyds to get to the £50,000 limit.

roddydogs

So what was the point of this article? if everything is as it was?.so lets get this right, if ive got say £35,000 with Lloyds, and £35,000 with say SAGA, im covered for the full amount with both? So why does the merger provide a "nightmare" that wasnt already there?

tom188

Correct.

Just the mail scaremongering as usual.

soulsaver

roddydogs wrote: »

So what was the point of this article? if everything is as it was?.so lets get this right, if ive got say £35,000 with Lloyds, and £35,000 with say SAGA, im covered for the full amount with both? So why does the merger provide a "nightmare" that wasnt already there?

Other than, as I have said before, understanding the compensation 'risk' especially to the uninitiated must appear to be.... a nightmare:

So do you get up to 50k joint in Lloyds TSB Scotland? And a further £50k in Lloyds TSB? And SWB? And AMCB? But not if perm any of five with C&W? And perm Halifax, Saga, If, BM, BoS, AA... to a total of £50k... unless any of em are joint accounts in which case: If its C&W and if... except if parent bank hq is in EEA and pays less than UK then 'passported' - the first.. or if not then FSCS isn't covering and claims will be on the parental nations depositor scheme unless that has been supplemented by the parental government except in Spains case where there appears to be no depositor protection so Santander doesn't passport...
It's a dog's dinner to the average consumer.