Oaknorth bank - is it prudent to have more than £85k in account?

flopsy1973

Hi 
I have 160k in the 90 day notice account with the above bank should I be worried about the amount being over the 85k limit if this bank did fail ?

eskbanker

I'd suggest editing your rather clickbaity thread title, as there's no suggestion that the bank actually is failing, is there?

However, if it did, then only £85K would be covered by FSCS protection (assuming a sole rather than joint account), so you would lose £75K in that scenario (plus accrued interest)....

Hoenir

Do you think the bank is going to fail ? 

flaneurs_lobster

Ooh, a Bank Run! 

I saw it on The Internet!

I'll get my folding chair and a Thermos.

ColdIron

FIREDreamer said:

They are closing the savings accounts held via Hargreaves Lansdown (uncompetitive with the others).

I'm struggling to see what that easy access account has to do with the notice account in the OP

ColdIron

It doesn't seem obvious to me that they are 'withdrawing from some lines of business' if they close an account with an uncompetitive rate and replace it with a better one. Otherwise every bank could be characterised in the same way

Middle_of_the_Road

So there's no fear of Oaknorth going south 🙂

born_again

eskbanker said:

I'd suggest editing your rather clickbaity thread title, as there's no suggestion that the bank actually is failing, is there?

However, if it did, then only £85K would be covered by FSCS protection (assuming a sole rather than joint account), so you would lose £75K in that scenario (plus accrued interest)....

Really needs to be edited to COULD. As if sold on or sold off, any excess funds go to cover funds not covered by FSCS👍

eskbanker

born_again said:

eskbanker said:

I'd suggest editing your rather clickbaity thread title, as there's no suggestion that the bank actually is failing, is there?

However, if it did, then only £85K would be covered by FSCS protection (assuming a sole rather than joint account), so you would lose £75K in that scenario (plus accrued interest)....

Really needs to be edited to COULD. As if sold on or sold off, any excess funds go to cover funds not covered by FSCS👍

I'd argue that a bank being sold hasn't really 'failed' as such, and FSCS themselves state that they compensate on failure (which therefore implicitly excludes 'rescue'):

If you hold money with a UK-authorised bank, building society or credit union that fails, we’ll automatically compensate you up to £85,000 per eligible person, per bank, building society or credit union.

https://www.fscs.org.uk/what-we-cover/banks-building-societies-credit-unions/

Zaul22

They are one of the oldest, biggest challenger banks in the UK. If they were a risk, they all would be.

eskbanker

Zaul22 said:

They are one of the oldest, biggest challenger banks in the UK. If they were a risk, they all would be.

Not sure it's particularly meaningful to describe a bank as 'one of the oldest' when less than ten years old, which just emphasises the youth of that segment of the market, but in themselves longevity and size aren't attributes that offer reliable protection, hence the demise of countless businesses such as Woolworths, etc....

Not that I'm trying to cast any aspersions though, and not aware of any reason to do so, hence asking OP why they'd chosen that form of wording!