Savings

Bazooka_joe

I have a significant amount of savings with several banks and building societies. I’ve limited each account to £85,000 so that my money covered under the financial compensation scheme should anything happen to those banks and building societies. Bearing in mind the difficult times that we are currently having and the effect on the economy, can I be assured that my money is safe with the banks during these difficult times

Galloglass

can I be assured that my money is safe with the banks during these difficult times

If the legislation has not changed then the current protection continues. Despite the 24 hour media, this is not Armageddon but one of the regular downturns we have every 7 - 10 years. It's a big one but we always bounce back.

Jeremy535897

The current protection continues.

Bazooka_joe

Thanks guys 

sharpe106

Lets be honest if it gets to that stage and the banks go how would the money be safe? There be no government to bail them out.  

Undervalued

Bazooka_joe said:

I have a significant amount of savings with several banks and building societies. I’ve limited each account to £85,000 so that my money covered under the financial compensation scheme should anything happen to those banks and building societies. Bearing in mind the difficult times that we are currently having and the effect on the economy, can I be assured that my money is safe with the banks during these difficult times

Well that is about as safe as it is possible to be, assuming you have checked that the banks you use are all separate for the FSCS scheme. There are lists online.

Given how low interests rates are you could buy the maximum holding of Premium Bonds, as that is directly with the government. Also Gilts (government stock), although they are a tradeable commodity so could be worth less than their face value (or more) unless you hold them until the redemption date. 

Inigo_Montoya

I may be mis-remembering but I seem to recall Greece had to reduce the value of every-bodies savings when they got bailed out ?
eg see
https://www.ft.com/content/9963b74c-219c-11e5-aa5a-398b2169cf79

Wouldnt surprise me if Western governments had to do so something similiar due to the horrific levels of national debt that they will have racked up in once herd immunity starts bedding in

I'd also be interested in people with some financial acumen as to the chances of very high inflation in the coming months & years which would could also seriously erode the value of peoples savings ?

InA

I think the Greece "haircut" was just scaremongering.

https://www.reuters.com/article/eurozone-greece-haircut/update-1-greek-bank-official-dismisses-haircut-report-as-baseless-idUSL8N0ZJ3IT20150703

Also, the situation in Greece and Cyprus was complicated by having the Euro as their currency; which could not be devalued. I think currency devaluation and high inflation would be more likely here, at which point the interest rates would need to move upwards. However, this again is also complicated by the fact that all Governments appear to be borrowing right now so the overall effect on currency should cancel out.