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

Hattie627

Please, could a Moderator remove this thread or at least delete the title. The title reads as if this bank is failing when there is nothing to suggest that this is the case. Titles like these could be frightening to readers who may take unwise action (eg closing accounts with penalties for early closure)

clairec666

Hattie627 said:

Please, could a Moderator remove this thread or at least delete the title. The title reads as if this bank is failing when there is nothing to suggest that this is the case. Titles like these could be frightening to readers who may take unwise action (eg closing accounts with penalties for early closure)

Good idea. And the same scenario applies to any bank, not just Oaknorth, as to whether you should keep more than £85,000 with them.

eskbanker

Hattie627 said:

Titles like these could be frightening to readers who may take unwise action (eg closing accounts with penalties for early closure)

While I agree that the title is misleading, having made the same point early on, if a saver chose to close an account on the basis of seeing the title of a thread, without even reading the posts, then they'd only have themselves to blame!

Hattie627

eskbanker said:

Hattie627 said:

Titles like these could be frightening to readers who may take unwise action (eg closing accounts with penalties for early closure)

While I agree that the title is misleading, having made the same point early on, if a saver chose to close an account on the basis of seeing the title of a thread, without even reading the posts, then they'd only have themselves to blame!

People act irrationally and unwisely in relation to money when panicked.

eskbanker

Hattie627 said:

eskbanker said:

Hattie627 said:

Titles like these could be frightening to readers who may take unwise action (eg closing accounts with penalties for early closure)

While I agree that the title is misleading, having made the same point early on, if a saver chose to close an account on the basis of seeing the title of a thread, without even reading the posts, then they'd only have themselves to blame!

People act irrationally and unwisely in relation to money when panicked.

Agreed, it would be highly irrational and unwise to overreact like that, so anyone doing so would only have themselves to blame!

poseidon1

eskbanker said:

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!

Fair comment.

If I had concerns about this particular institution it would be its non quoted private ownership status. However its perception ( as a business) by worldwide institutional tier 2 capital  investors is reassuring as evident by the last bond issue details below -

https://www.londonstockexchange.com/news-article/PT73/annual-financial-report/16928756

Tier 2 bonds, are the lower tier which can be sacrificed in its entirety if the business encounters serious problems, so hard headed professional Institutions prepared to oversubscribed an issue conveys a degree of reassurance beyond the fact of the bank's FSCS protection for retail investors.

Does that mean I would be prepared to exceed the £85k limit on a savings account with them? No, but have happily done so with Chase UK on the back of its JP Morgan bank ownership.

 If one bothers to do a deep dive into a banks financial stability ,status, and ownership then probably OK to take a view as to whether wise to deposit in excess of the £85k protection. Vast majority of savers  have neither the skills  or inclination to do this, so safer for them to stay within FSCS guardrails. I sense the original OP does not have such skills, so will no doubt think again before taking similar action in future.

I would not have done what the OP did ( in respect of this particular bank), but certainly see no reason for them to take any action now that would trigger early redemption penalties. 

masonic

If I had decided to substantially breach the FSCS £85k compensation limit, and I decided to do so with a relatively small bank, and I was worried about what might happen if said bank got into difficulties, what I wouldn't do is start a thread proclaiming said bank is failing, with or without a question mark at the end of the title.

boingy

Zaul22 said:

They are one of the oldest, biggest challenger banks in the UK. 

Are you saying they are one of the oldest new banks? 
Not sure that makes them any more or less safe than other banks.

DjangoUnchained

Had a cash isa with them, its just matured and ive kept it going with them, i had a few queries a while back and found them very quick to respond and helpful. as mentioned they are FSCS covered so im happy with them

VNX

Personally I wouldn’t keep more than 85k in one bank but ONB failing is Very very unlikely.

Did you think about this before putting so much money into one bank?