Savings Guarantees

CazC_2

Following the Northern Rock issue, I've read a lot lately about the "guarantee" on savings should an institution fold. But with so many instititions owned by other bigger parent companies eg. Halifax owned by Bank of Scotland, Woolwich by Barclays etc, is my money protected for each of the accounts if I have savings with, say two instititions in the same group? Or is it just once?

Should I be checking out who the parent companies are if I'm looking to spread my money around? Anyone know the answer?

MattB_4

There are a couple of topics on this within the Savings section. I'll see if i can dig one out, but no promises

regularsaver1

It depends on their licence.

Halifax, Bank of Scotland, Intelligent Finance and Birmingham Midshires now share the same banking licence so you are only protected once across the companies.

http://www.halifax.co.uk/HelpCentre/blc.asp?tag=HOME5

HBOS only has a 50% share in Sainsburys, and so has its own licence, so Sainsburys is separately covered.

I'm not sure about Woolwich and Barclays as I thought Woolwish was no-more anyhow?

MarkSW17

Following from CazC's question what if the bank is foreign owned? I have savings with ICICI. If it was in trouble would my savings be protected? I assume at the very least the UK branch would have had to agree to the FSA conditions before it could start doing business, i.e first £2k is protected, then 90% of next 33k?

MattB_4

They would still have to have a UK banking license so it's fine in that respect.