Safety of UK banks

ruthg_2

Can I get a definitive answer on whether, if I have up to £85000 in a UK protected bank (Santander) and also have an amount in bonds with the same company, they covered separately in the FCSA protection scheme? This is what I have been told by Santander!

Neverland

ruthg wrote: »

Can I get a definitive answer on whether, if I have up to £85000 in a UK protected bank (Santander) and also have an amount in bonds with the same company, they covered separately in the FCSA protection scheme? This is what I have been told by Santander!

That sounds unlikely to me

http://www.fscs.org.uk/what-we-cover/eligibility-rules/compensation-limits/

Maybe the bank account counts as a deposit (£85k protection) and the bonds as an investment (£50k), but even the FSCS web site is not crystal clear on whether you can claim £135,000 across two financial products

Wouldn't be the first time a bank told you the wrong thing would it?

I would ask the FSCS themselves

Reaper

What do you mean by "bond"? I would use it to mean "Company Bond" which is an investment. But do you mean a fixed term savings account, or something else? The word is so misused (not least by the banks) as to be meaningless without more details.

calypso_rhapsody

If you mean that you hold corporate bonds in Santander UK then i don't believe these are covered by FSCS at all ... If on the other hand you hold savings 'bonds' in Santander then they count towards the £85k - you don't get two lots.

jimjames

The total is £85k with the overall company holding the banking licence. So if you had £80k with Santander and £20k with Cahoot then you would only be covered for £85k out of your £100k savings.

So regardless of what Santander have said the total is only £85k

CleanShirt

Whoever told you that was wrong- its the company as a whole with the bank that is protected up to 85k- whether the funds are held in a current account, deposit account or bond.

opinions4u

ruthg wrote: »

Can I get a definitive answer on whether, if I have up to £85000 in a UK protected bank (Santander) and also have an amount in bonds with the same company, they covered separately in the FCSA protection scheme? This is what I have been told by Santander!

The FSCS covers deposits and investments differently.

As you don't explain what you mean by "bond" I suggest you google those differences.

Totton

You need to do a little bit of research, possibly you have £85k protection with your bank savings and £50k with the bond. It depends on exactly what type of bond you hold.

Here's a useful link - http://www.fscs.org.uk/what-we-cover/eligibility-rules/compensation-limits/

HTH,
Mickey

sabretoothtigger

A real bond is a corporate debt, its an investment and can rise or fall in value. Savings are totally different

http://seekingalpha.com/article/627431-banco-santander-ignore-the-pain-in-spain

Here is an article on Santander and the idea its a Spanish bank

It certainly has some problems, as any bank in Spain does, but it is relatively well positioned when compared to its Spanish rivals. In fact, Groupo Santander posted a quarterly record for pre-provision profit of 6.280 million euro, or impressively $8.133 million. This alone suggests that STD is capable of producing revenue in a troubling environment. Unfortunately, Santander was forced to set aside a considerable chunk of pre provisions profit in expectation of future loans going sour, leaving Santander holders with earnings per share of only 22 cents, down from 31 cents the previous quarter. A significant portion of the provisions went to cover non-performing loans in Spain.

As can be seen below, Santander's earnings are well diversified. The largest contributor to group profits is Brazil, followed by Mexico and the United Kingdom. Spain alone is responsible for 12% of the group's profits as can be seen in the below graphic from Santander's most recent quarterly report.

apparently they have more invested in UK then Spain