TSB possible takeover

ranciduk

I’m a TSB customer (savings)

apparently Santander may be about to buy them out soon

i was wondering how this could possibly affect me as a customer 

is there any chance I may end up having to move all my money out? Or is that very unrealistic in this type of takeover?

I read this article:

“If TSB were sold, current accounts would probably be switched to the new owner. Those unhappy with a change could easily move banks using the Current Account Switch Service, which pledges to transfer customer deposits, direct debits and standing orders within seven days.“

I have money in a TSB fixed saver and once it’s matured if I want to move the money to another bank I would usually move it to my TSB current account, then move the money to my other bank

If they take the TSB current account away, I wouldn’t be able to do that and all my money would just be stuck in TSB with no way of getting it out!

Peter999_2

Santander have approached Banco Sabadell about taking over TSB but it's a long way off if it actually happens.

I don't really understand why you think this means that they will close your current account if it does happen.  Banks want as many current account customers as they can get.

What is more likely is that they will incorporate the TSB IT within their existing IT and keep the brand name of TSB going.  Don't forget Lloyds also own Halifax and Bank of Scotland.   They all use the same IT systems but have kept the brand names for well over a decade.

Kim_13

There would be no cause for concern unless you had received a lifetime ban from the group that might be buying them (and even then a completion date would be announced in advance, and the worst that they could do would be to return your money and require you to bank elsewhere.)

It would be very odd indeed for a provider to sell their current account business but still offer savings (Tesco and M&S simply closed the current accounts in this situation.) If that did happen, then TSB would need to facilitate alternative ways of getting money out of a savings account (such as asking for the details of a nominated account.) They couldn't just hold funds hostage.

I suspect it is just bad journalism and the offer is for the whole of TSB's business, but the article has mentioned current accounts specifically as they think that is what readers will be concerned with.

WillPS

Politely, you're worrying over nothing. Banco Santander might take over Banco Sabadell. Banco Santander might also sell off Santander UK and Sabadell might sell off TSB. Maybe Santander UK and TSB will both end up being mutualised (doubt it, but it seems to be flavour of the month right now). Maybe all are combined in to a new super-banco.

Or quite possibly none of the above will happen. You're rather ahead of yourself is my point.

Whatever happens, any deposits you hold other than bonds will be returnable, if by no other method then by writing and following any subsequent instructions.

jaypers

This is all completely hypothetical at present. I read Nat West might be a contender so who knows. 

Money_Grabber13579

jaypers said:

This is all completely hypothetical at present. I read Nat West might be a contender so who knows. 

The FT is reporting that NatWest has decided not to bid for TSB (although a sale to someone else is still possible).

steven141

Where is the article? I heard that they are up for sale but never heard of anything about a buyer?

surreysaver

Di Santander know what they're letting themselves in for? TSB have quite a dodgy IT system.
I expect they want to buy the business so they can sell all the branches and make a profit.
I thought Santander were looking to get out of the UK market.

ranciduk

Peter999_2 said:

Santander have approached Banco Sabadell about taking over TSB but it's a long way off if it actually happens.

I don't really understand why you think this means that they will close your current account if it does happen.  Banks want as many current account customers as they can get.

I don’t, it makes no sense at all!

But that’s what the article says in The Times, so…

but what sort of bank would have savings accounts and ISA accounts and regular savings and fixed bonds- but no current accounts 

makes no sense

masonic

surreysaver said:

Di Santander know what they're letting themselves in for? TSB have quite a dodgy IT system.

It's Sabadell's IT system, so presumably they'd look to migrate into their own system in a similar way as they integrated Cahoot.

ranciduk

WillPS said:

Politely, you're worrying over nothing. 

Whatever happens, any deposits you hold other than bonds will be returnable, if by no other method then by writing and following any subsequent instructions.

in the unlikely event that once my TSB fixed bond matures next year but my TSB current account no longer exists due to some takeover - I would have no current account or debit card with which to draw out the matured money - or to transfer some or all of the money to another bank

Unlikely I know, but still a bit scary if it did happen

but you are saying you could write to them and request a transfer to another bank?!

seems like a process that would have died out in the last century!