How safe are building societies?

expounder

I have cut my loses and and pulled out of corporate bonds with a loss of
just under one third of the investmanet. I have recieved a regular income since the ten years I bought them.

I also surrendered in two whole life insurance policies which over the period of 27 years have made a 100% increase [which has suprised me as were linked to most of the financial companies that are now paying out much reduced endowments]

I now have three main investments [all under the 50.000 compensation limit].

One, a three year bond with Northern Rock @ 6.8% [two years to run]

One, a one year bond with Chelsea Building Soc @ 5.8% [just got in with that one]

With the money from the life Ins policies and the remainder of corporate bond shares I have opened a tracker savings [contingency] account with Scarbourgh/Skipton Building Soc paying at the monent 3% till Feb 2010.

I am as I have already said in another post retired, and know that both building societies had exposure to the Iceland banks I'm wondering how safe on a scale of one to ten
would the FSA consider these building societies?

theGrinch

I consider building society savings as safe as any asset. Not only are they relatively conservatively run, they seem to work together to help out the troubled ones and there is a lot of emotion attached to them as such I dont believe the government would allow any to fail.

Im with the Chelsea too and as a ratio of their assets any icelandic losses will be small.

baby_boomer

As a ratio of their assets, the losses at Northern Rock were also small :rotfl:

The Chelsea Icelandic !!!!-up has wiped out their entire annual profits!

And in a year when the FSCS has come calling for money to pay back individual Icelandic investors (but not Chelsea BS).

Not the end of the world, but a significant body blow.