saffron building society

sjh101

I have some savings in a saffron building society account. Its not very much but its savings nonetheless. Its only in the hundreds but its taken me a while.

Anyway, I'm becoming increasingly concerened that I'm going to lose this money after hearing that big bank firms are going under.

As Saffron doesn't appear to be a well established company I'm worried they might go under too. They are covered by the FSA but I don't want to even get to that stage. The building society was reccomended on here with good savings rates so I went for it.

I'm just being pro active here, I haven't actually heard anything from the building society that they are going under. Just wanted some advice from people on here.

1) Should I swap the money to a better known savings account thats also covered? (I have a sainsburys savings account which is still open, with a very low interest rate, which is why I swapped to saffron. I could put the money back in there. It wouldnt make much difference with the savings rates as i dont have a mega amount saved)

2)if it came to the point where I lost the money, is it a difficult process to claim to money back through the FSA?

3)Whats the safest place to keep the money?

many thanks

apt

I would stick with Saffron. Indeed I would be taking advantage of their members only 4% Regular Saver Cash ISA which closes on 30 April. A lot of small building societies have been taken over, but no one has lost their money or had any problem accessing their savings.

helptoyou

See Link below.

http://www.moneysavingexpert.com/savings/safe-savings

evenasus

sjh101 wrote: »

I have some savings in a saffron building society account. Its not very much but its savings nonetheless. Its only in the hundreds but its taken me a while.

Anyway, I'm becoming increasingly concerened that I'm going to lose this money after hearing that big bank firms are going under.

You received some answers in your thread last month.

https://forums.moneysavingexpert.com/discussion/comment/60279937#Comment_60279937

Reaper

1) Should I swap the money to a better known savings account thats also covered?
No (IMO)

2)if it came to the point where I lost the money, is it a difficult process to claim to money back through the FSA?
No

3)Whats the safest place to keep the money?
Anywhere that qualifies for the £85k savings guarantee

kidmugsy

Since the deposit protection scheme could afford to rescue depositors at a small BS but probably couldn't afford to do so at a big bank, there's a case for leaving your money where it is.

grey_gym_sock

also, small building societies mostly just lend money to ppl buying their own home, unlike big banks, who sometimes do crazy !!!! which even their board of directors doesn't understand.

bigadaj

grey_gym_sock wrote: »

also, small building societies mostly just lend money to ppl buying their own home, unlike big banks, who sometimes do crazy !!!! which even their board of directors doesn't understand.

Though the directors keep the bonuses if it all comes off, and keep their pensions if it doesn't.

kidmugsy

bigadaj wrote: »

Though the directors keep the bonuses if it all comes off, and keep their pensions if it doesn't.

That's because the directors are responsible for any success whereas their subordinates are responsible for any failure.