LLoyds bank and Nationwide downgraded

sandy2_2

I¨m not that astute with money matters... anyway Hubby and I have a joint flex account and e savings with Nationwide, I thought FSA compensation scheme covered us both from Dec 2010 for upto 85K each, also have money in Lloyds in my name. I thought all these accounts were safe, but have just been told by ! ´ friend´ this isn´t the case as both banks have been downgraded and are now not covered by FSA.
We also have a joint account with Nat West

Please will someone give me the correct information.

Sandy

ffacoffipawb

sandy2 wrote: »

I¨m not that astute with money matters... anyway Hubby and I have a joint flex account and e savings with Nationwide, I thought FSA compensation scheme covered us both from Dec 2010 for upto 85K each, also have money in Lloyds in my name. I thought all these accounts were safe, but have just been told by ! ´ friend´ this isn´t the case as both banks have been downgraded and are now not covered by FSA.
We also have a joint account with Nat West

Please will someone give me the correct information.

Sandy

The correct information is your 'friend' is a !!!!!!.

FSCS cover of £85k still applies.

atush

It has not been downgraded by anyone official cuh as the FSCS, but by Moody's which is a ratings agency. Ie a private enterprise. Which gave Lehman Brothers an A 'all is right rating'.

I concur, your friend is an ignorant !!!!!!.

Masomnia

Utter !!!!!!!!. You're still covered. Worry not.

alanq

Would the friend rather save with a bank that used to have a very low rating and still has a very low rating or a bank that had an excellent rating and now has a very good rating?

ALL savings accounts have to be covered by the FSCS or a deposit protection scheme of another EU country. If the banks mentioned had been thrown out of the FSCS they would not be allowed to continue to hold deposits.

Paul_Varjak

atush wrote: »

It has not been downgraded by anyone official cuh as the FSCS, but by Moody's which is a ratings agency. Ie a private enterprise. Which gave Lehman Brothers an A 'all is right rating'.

They actually gave Lehman Brothers an AA rating up to minutes before the collapse and the gave AIG an even higher AAA rating. The analysts at Moody's were not sacked or even disciplined.

Next week I will have to look for new work, probably as a knock-on effect of the downgrading last week by Moody's one UK financial institution.

MoneySaverLog

sandy2 wrote: »

I¨m not that astute with money matters... anyway Hubby and I have a joint flex account and e savings with Nationwide, I thought FSA compensation scheme covered us both from Dec 2010 for upto 85K each, also have money in Lloyds in my name. I thought all these accounts were safe, but have just been told by ! ´ friend´ this isn´t the case as both banks have been downgraded and are now not covered by FSA.
We also have a joint account with Nat West

Please will someone give me the correct information.

Sandy

Not true, all banks are covered. Though some banks are grouped financially so if you have more then 85K invested in them as a group, you're only covered for the first 85K.

Nationwide and Lloyds Banking Group are seperate though :-)

sandy2_2

MoneySaverLog wrote: »

Not true, all banks are covered. Though some banks are grouped financially so if you have more then 85K invested in them as a group, you're only covered for the first 85K.

Nationwide and Lloyds Banking Group are seperate though :-)

Thanks I actually managed to understand the grouping rule, but was a bit confused with Nationwide joint accounts. I thought at one time the account was only covered for 85K not 85K each ie 170K

Sandy

Paul_Varjak

sandy2 wrote: »

Thanks I actually managed to understand the grouping rule, but was a bit confused with Nationwide joint accounts. I thought at one time the account was only covered for 85K not 85K each ie 170K

You may also like to note that any savings you may have with Cheshire/Derbyshire/Dunfermline would be included within the 170k limit as they are all part of Nationwide now.

sandy2_2

Paul_Varjak wrote: »

You may also like to note that any savings you may have with Cheshire/Derbyshire/Dunfermline would be included within the 170k limit as they are all part of Nationwide now.

No, only have some savings in Nationwide and Halifax
Sandy

MoneySaverLog

sandy2 wrote: »

No, only have some savings in Nationwide and Halifax
Sandy

Halifax BOS and Lloyds have seperate funds too