security of savings accounts

fudger

i had many tens of thousands of pounds invested in Northern Rocks internet account,and have become a bit of a nervous wreck with all the uncertainty recently and ave now managed to get it all out and split it between 2 building society internet accounts (Coventry,and Birmingham Midshires).However i am ow wondering whether even building societies are safe,since with many of thousands of fixed rate mortgages soon to become variable rate,with a huge rise in the monthly payments,there are going to be a huge rise in bad debts in building societies,so is there a chance that some of the smaller ones could go under?.Also,would i get 2 lots of £31700 if both of the above societies went bust?

rathernot

Honestly I wouldn't worry about it.

Everything I've seen and read suggests the banking system and government simply won't let any major financial institution go under, they would be brought out before that will happen, so whilst you can "protect" yourself, you're doing so against a situation that 99.9% won't happen.

Rafter

Just to confirm, if 2 organisations went bust and you had split your savings between them, you would receive two lots of £31,700.

If you have more faith in the UK government than UK homeowners then you could think about National Savings for some of your money.

However, if there was a general housing collapse that took all the banks and building societies to the wall then the government would be pretty stuffed too. You might get your £'s back but they would be pretty worthless as the UK economy would be a basket case.

Don't be a nervous wreck. Your hard earned savings are helping others to buy their own homes in return for the interest you are earning. If you didn't save or withdrew your money it would create the very issue you are worried about.

The government have promised that your money is safe and that is good a guarantee as it is possible to get.

R.

LittleVoice

fudger wrote: »

. . . now managed to get it all out and split it between 2 building society internet accounts (Coventry,and Birmingham Midshires). . . .

Though I have no fear about the money I have with Birmingham Midshires, you should be aware that it is not a building society - it is part of the Bank of Scotland.

baby_boomer

Calm down .

The Northern Rock business model is (was?) unique.

flying_flanders

Somebody told my dad that NS&I savings may not be as secure as in a bank savings account, are they stringing him along?

isofa

Everyone is winding everyone up in this media frenzy. Your savings are as safe as they could be. Relax and find good accounts for your money.

purch

and ave now managed to get it all out

well done:T ...........must have been a really tough job saying 'I want my money back'.........and them saying 'here it is !!!!!!! '

baby_boomer

flying_flanders wrote: »

Somebody told my dad that NS&I savings may not be as secure as in a bank savings account, are they stringing him along?

They are taken the Michael bigtime. If the UK Treasury defaults on its obligations we'd all better make sure we have a plot of land to grow our own food as the world will have imploded.