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Building Societies - are they safe?

Former_MSE_Guy
Posts: 1,650 Forumite



This thread is to discuss the following news story:

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Comments
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Ooooh er missis. What do we do now? Is it time to panic, pull the cash, stuff it in the mattress? Or is this more financial malarkey to get us lemmings on the run?:hello:0
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Ooooh er missis. What do we do now? Is it time to panic, pull the cash, stuff it in the mattress?Conjugating the verb 'to be":
-o I am humble -o You are attention seeking -o She is Nadine Dorries0 -
Just keep below 50K and as long as the country doesn't go bust .................(hopefully there will be some advance warning of that!)0
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If you have £50,001 in an account and the institution hits demise, will FSC pay the £50K so you only lose £1?:hello:0
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If you have £50,001 in an account and the institution hits demise, will FSC pay the £50K so you only lose £1?
Yup, the first 50k is protected.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
+ potentially any interest accrued
The FSCS indicates £50,000 as the total maximum level of compensation, not £50,000 excluding interest - http://www.fscs.org.uk/consumer/key_facts/limitations_of_the_scheme/compensation_limits/
The maximum levels of compensation are:
Deposits: £50,000 per person (for claims against firms declared in default from 7 October 2008).0 -
We won't get the truth from the current batch of directors - at least not in this year's accounts.
It will be interesting to compare the West Brom BS's results for the year to end March 2009 with their confident statement half-way through that financial year.The West Brom continues to perform strongly through the current, unprecedented economic times. As the UK’s seventh biggest building society, the West Brom is a successful and profitable business, generating tangible benefits for its 530,000 members.. If West Brom does have to be bailed out, it is worth considering that it is x3 the size of Dunfermline and that one ratings agency had warned Nationwide that if it bails out any more BSs it would be downgraded.
All BS directors have to watch their backs since their increased salaries and bonuses over the last decade have come on the back of the very same diversification policies [into buy-to-let / self-certification / commercial property / Icelandic banks / buying dodgy loan books to boost the assets ] that are hitting the societies so hard.
Your £50K is safe - guaranteed by the government - but what are the interest rates going to be like as these societies try to repair the damage over the next five years?
Another problem with the £50K protection, necessary as it is, is that it will delay the process of a flight of savers money to the stronger societies and a weeding out of the weak.
The article is a case in point. Martin Lewis is effectively directing savers towards the West Brom with its new top 4.3% rate - and why not since the government will bail it out if it has to?0 -
Do you have a link to sustantiate that statement?
The FSCS indicates £50,000 as the total maximum level of compensation, not £50,000 excluding interest - http://www.fscs.org.uk/consumer/key_facts/limitations_of_the_scheme/compensation_limits/
Sorry for not being clear -that's what I meant you lose £1 + any accrued interest0 -
"When the Government borrows, the citizen has to save".
Machiavellii0
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