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MSE News: Santander safety Q&A: your questions answered

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MSE News: Santander safety Q&A: your questions answered

edited 30 November -1 at 1:00AM in Savings & Investments
68 replies 10.4K views
Former_MSE_HelenFormer_MSE_Helen
2.4K posts
edited 30 November -1 at 1:00AM in Savings & Investments
This is the discussion thread for the following MSE News Story:

"Santander has explained its structure to help calm fears over the safety of UK deposits ..."
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Replies

  • Maybe a totally silly question (and the least of people's worries), but say you had £80k in a 3% aer paying savings account and the bank did go under, would you be entitled to your capital plus interest under the FSCS protection?
  • innovateinnovate
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    If the Icesave debacle is anything to go by, you will get interest up to the date the bank is declared insolvent. You receive up to £85K guaranteed.

    The FSCS would publish detailed claims procedures etc.
  • Former_MSE_DanFormer_MSE_Dan
    1.6K posts
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    Good question :) The £85,000 limit includes interest yes, so to be safe and ensure everything is protected you are best to stick a bit under the £85,000 so that interest earned won't topple you over the line

    Dan
    MSE Web Editor, mainly responsible for looking after, and keeping up-to-date, ‘hard-core’ financial articles such as credit cards, savings and loans.

    If you spot a rate change that we haven't already mentioned or added into articles or tips, Please send me a PM about it




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  • peterporkpeterpork Forumite
    3 posts
    Seventh Anniversary Combo Breaker First Post
    MoneySaving Newbie
    I don't think you mention Cater Allen Bank, which is also owned by Santander? I guess the same 'UK rules' apply?
    Thanks
  • CoolHotColdCoolHotCold Forumite
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    Ninth Anniversary 1,000 Posts Combo Breaker
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    It's a whole lot easier to think of them as two separate banks owned by different entities.

    Spanish banks are in dire straights and looks like a Bank Run is under way in some banks, the UK financial intuition is pretty healthy and the chance of Santander UK going bust is about the same as RBS or Halifax in the short term.
  • Former_MSE_DanFormer_MSE_Dan
    1.6K posts
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    I don't think you mention Cater Allen Bank, which is also owned by Santander? I guess the same 'UK rules' apply?
    Thanks

    Yep, Cater Allen is owned by Santander UK. It actually has its own FSA licence number though, that means it doesn't share its £85k/person protection with the main Santander UK group.

    So in theory you could hold £85,000 in Santander and £85,000 in Cater Allen, all in 100% safety.

    Dan
    MSE Web Editor, mainly responsible for looking after, and keeping up-to-date, ‘hard-core’ financial articles such as credit cards, savings and loans.

    If you spot a rate change that we haven't already mentioned or added into articles or tips, Please send me a PM about it




    Don't miss urgent MoneySaving, hear first by getting Martin's Money Tips Free E-mail at www.moneysavingexpert.com/tips
  • The £85 grand limit is all very well, but if the worst does happen you may not be able to access your cash for some considerable time; months or possibly years. Some people are still waiting for the Icesave cash!

    It is difficult to say what actually will happen. It is likely all accounts will have to be frozen. It will take some time to sort out those assets.

    Bust is extremely unlikely; it is more likely that any bank will be fully nationalised like Northern Rock.
  • edited 18 May 2012 at 4:04PM
    innovateinnovate
    16.2K posts
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    edited 18 May 2012 at 4:04PM
    I like facts a lot, so I went to try and find the credit ratings of all the UK banks. It doesn't appear to be easy to get hold of this information without a paid subscription, but I found what looks a reasonably up to date table from before yesterday's Santander UK downgrade:

    http://www.moneysupermarket.com/c/news/how-safe-is-your-bank/0003043/

    Not sure how valid this table is - does anyone have anything better to hand? Assuming though it is valid:

    Moody's downgraded Santander UK to A2 yesterday - - bringing Santander UK on par with a whole lot of other UK banks, such as BoS, BM, Halifax, IF, LLoyds and Nationwide. A2 is still a lot better than many other banks.

    Also, Moody's aren't the only game in town. Fitch and S&P have a view too. More importantly though, the markets do have have views too, often a lot more timely and a lot more precise than Ratings Agencies. According to the FT, things aren't looking terribly awful today for the spanish banks (just awful, lol!).

    EDIT: That FT link doesn't work directly for some reason, but you should be able to get to it if you google this link, then select the first entry on the list.
  • innovateinnovate
    16.2K posts
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    Some people are still waiting for the Icesave cash!

    All retail investors have received all their money years ago.
  • NPowerUserNPowerUser Forumite
    409 posts
    Mortgage-free Glee!
    For folks with a Santander mortgage on their 4.24% SVR, perhaps the picture is less clear.

    A raft of lender pushed up their SVR's recently but Santander was not one of them.

    I suppose the cynic in me thinks, that as Santander UK has been downgraded by the Credit Agency, if the cost of borrowing will increase in the wholesale market to them, then surely customers will end up paying more on their mortgage to cover the higher charges?

    How long will the SVR stay at 4.24%?

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