What happens if a building society goes bust?

Joewilliams1997

Hey,

so i heard if i put my savings into a building society and they go bust, apprently, i can get compensation and make more money because i get compensated because they go bust?

Someone told me because nortern rock went bust, apprently they were paying the customers or something more money because they went bust?

Anyone know if what im saying is true or could advise me?

Many thanks :j

ceredigion

Apart from everything else Northern Rock was a bank at the time of it's troubles.

Keep_pedalling

The someone who told you this is an idiot.

Yawn

Buildings societies (and credit unions) enjoy the same government savings protection as banks (£75,000, probably going back up to £85,000 at the end of January). You get the interest you would have been paid otherwise, but nothing more. Hardly a profit!

agrinnall

Which Building Society are you going to choose in the hope that they go bust so that you can make your fantasy profit?

System

Building Societies tend to merge with other ones rather than go bust.
If anything, this makes your cash extra secure with FSCS scheme available too.

Zanderman

Joewilliams1997 wrote: »

so i heard if i put my savings into a building society and they go bust, apprently, i can get compensation and make more money because i get compensated because they go bust?

You heard wrong, or were told wrong!

You'll get your money back (via the FSCS scheme) but you won't get compensation.

Why would you think you should get compensation (for what?) and where do you think the compensation would come from if the Building Society is bust?!?!

PeacefulWaters

Joewilliams1997 wrote: »

Hey,

so i heard if i put my savings into a building society and they go bust, apprently, i can get compensation and make more money because i get compensated because they go bust?

Someone told me because nortern rock went bust, apprently they were paying the customers or something more money because they went bust?

Anyone know if what im saying is true or could advise me?

Many thanks :j

"Someone" is a fantasist who should be ignored.

Blackbeard_of_Perranporth

I would go down the Nags Head and get a tip from the horse's mouth!

eskbanker

Yawn wrote: »

Buildings societies (and credit unions) enjoy the same government savings protection as banks (£75,000, probably going back up to £85,000 at the end of January).

FSCS is an industry scheme, not a government one....

agrinnall

eskbanker wrote: »

FSCS is an industry scheme, not a government one....

It seems that even that's not quite correct:

"FSCS is free to consumers and is independent of government and the financial industry."

https://www.fscs.org.uk/what-we-cover/about-us/